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Salary Deduction

Sylvia
Member
Fri, 11 Mar 2016 10:32:33 AM  (Last updated: Wed, 16 Mar 2016 07:52:42 AM)

Hi,

My company is facing a lot of traffic compounds issued while the employees using the company vehicle.  As such the Company would like to implement salary deduction as a deposit purpose just in case there's any traffic compounds in future.  This deposit will be used as the payment of traffic compound caused by the employees.

My I know whether the Company has the right for doing so?  

KL Siew
Administrator
Sat, 12 Mar 2016 09:35:06 AM

Actually the person who violated the traffic offence must be responsible for the compound or fine. But to deduct salary of an employee covered by the EA (salary not more than RM2000)through the payroll may violate section 24 of the Employment Act.

Try to find other ways to deduct his salary but don't show deduction in the payroll. At the same time, it really depend on the type of traffic offence, speeding definitely has not excuse. For delivery of goods when it is difficult or impossible to find parking, some companies would even encourage the employees to park anywhere as long as it gets the delivery done. Cheaper to pay compound than loss of business.

Sylvia
Member
Tue, 15 Mar 2016 02:34:41 PM

Hi Siew,

We have explained the same to the boss but she seems not agree with our point of view and insist us to deduct from the staff salary.  She even argued that the letter should be written by the employee requesting company to deduct their salary instead of company request the employee for salary deduction.  How should we go about?  We know this is not right but what can we do to protect ourself?

KL Siew
Administrator
Tue, 15 Mar 2016 05:53:10 PM

Another thing you can do is to consult the Labour Department, get their official views and then talk to the boss again.

Sylvia
Member
Wed, 16 Mar 2016 05:30:49 AM
HI Siew,In fact we have a letter from labour department when we applied for employee salary deduction. It's clearly mentioned deduction for summon is not allowed even though with the consent from the employee. We really do not wish to get into trouble.
KL Siew
Administrator
Wed, 16 Mar 2016 07:52:42 AM

Then as I said before, if the employee concerned admitted the offence and had agreed to the deduction, just don't let the deduction appear in the payroll. Get the money from him after receiving his full salary and give it back to the boss, no record kept. The employee should not complain later.

If it is the first offence, give him a stern written warning that you will be responsible to pay the compound next time.

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