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Wed, 23 Sep 2015 03:47:17 PM  (Last updated: Wed, 23 Sep 2015 05:03:25 PM)

Hi Mr. Siew,

I have question as employer. My company allow non-exempts staff to claim overtime even though salary more than RM2000, and overtime rate based on basic without any limit (follow EA). We do not have salary ceiling, therefore overtime rate keep increasing. Now we still want to pay overtime but want to cap the overtime rate eg. Basic fix at maximum RM2500/26 x1.5.

Please advise how to do that legally, must i need consent, or just a memo to serve all non-exempts staff?

We concern this is cut the benefit whether any problem to do that?

KL Siew
Wed, 23 Sep 2015 05:03:25 PM

Yes, it would be better to discuss the issue with the staff involved to get some mutual understanding in order to avoid disputes. If there is no agreement, another way to save cost may be to have better control over overtime work.

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