RegisterLog In

OverTime no longer getting paid, But replaced with Replacement Leave

NeXuS
Member
Wed, 06 Jun 2018 12:28:13 PM  (Last updated: Wed, 11 Jul 2018 10:11:11 AM)

Hi my company currently enforcing new rule for overtime:

1) Employee must work 4 hours extra from their working hour to be entitled for half day replacement leave. if employee works OT but only 2 hours, will not entitled for the replacement leave.

2) Employee who have to works OT on Saturday/Sunday, will be entitled for replacement leave as well.

3) Replacement Leave given is only valid for 3 months from issuance date.

Question: Is this legit and fair for the employees? In my case, I dont find it fair for me because given too many leaves, I couldnt spend it off due to the shortage of manpower and many incoming projects.

Hope to hear from you guys soon. Thank you =)

Gon
Contributor
Thu, 07 Jun 2018 02:28:51 PM

If you under employee schedule then you entiled for OT

If you not entitled for OT payment then replacement is an alternative

NeXuS
Member
Fri, 08 Jun 2018 09:50:23 AM
Originally posted by Gon on Thu, 07 Jun 2018 02:28:51 PM

If you under employee schedule then you entiled for OT

If you not entitled for OT payment then replacement is an alternative

Thanks for the reply. May I know whats the meaning of employee schedule? Currently my working shift is Mon-Fri, 9pm to 6pm. 

I've read the Labour Law about overtime pays, and I couldnt find anywhere stating replacement leave can be alternative way. Could you provide me the guide pls? Sorry ya for the trouble as I'm not really into law hehe. Thank you =)

Gon
Contributor
Tue, 19 Jun 2018 11:36:31 AM

please refer as below

Employee definition : 

1. Any person, irrespective of his occupation, who has entered into a contract of service with an employer under which such person’s wages do not exceed two thousand ringgit a month.


2. Any person who, irrespective of the amount of wages he earns in a month, has entered into a contract of service with an employer in pursuance of which—


(A) he is engaged in manual labour including such labour as an artisan or apprentice:
Provided that where a person is employed by one employer partly in manual labour and partly in some other capacity such person shall not be deemed to be performing manual labour unless the time during which he is required to perform manual labour in any one wage period exceeds one-half of the total time during which he is required to work in such wage period;


(B) he is engaged in the operation or maintenance of any mechanically propelled vehicle operated for the transport of passengers or goods or for reward or for commercial Purpose

(C) he supervises or oversees other employees engaged in manual labour employed by the same employer in and throughout the performance of their work;

(D) he is engaged in any capacity in any vessel registered in Malaysia and who—
(i) is not an officer certificated under the Merchant Shipping Acts of the United Kingdom as amended from time to time;
(ii) is not the holder of a local certificate as defined in Part VII of the Merchant Shipping Ordinance 1952 [F.M. 70/1952]; or
(iii) has not entered into an agreement under Part III of the Merchant Shipping Ordinance 1952; or


(D) he is engaged as a domestic servant.

If you fall any categories above then you shall entitled for OT.

Replacement leave is not in the law, it is alternative as extra effort (not required by law)from employer for those not entitled for OT. 

Expat2016
Member
Tue, 10 Jul 2018 02:55:05 PM

Does this mean that IT Engineer earning above 5,000 RM is not considered as "employee" as defined by (1) and (2)?

If yes, then he is not entitled for an OT pay?

So his employer can either give him a replacement leave or none at all?

Kindly clarify. Thanks.

Chinoz
Member
Wed, 11 Jul 2018 09:45:38 AM
Originally posted by Expat2016 on Tue, 10 Jul 2018 02:55:05 PM

Does this mean that IT Engineer earning above 5,000 RM is not considered as "employee" as defined by (1) and (2)?

If yes, then he is not entitled for an OT pay?

So his employer can either give him a replacement leave or none at all?

Kindly clarify. Thanks.

That "employee" definition is for Employment Act. Its cover automatically employee defined by the Act thus overtime is one of the benefit that its govern.

While other employee can be defined under Industrial Relation Act 1967 that defined:

“workman” means any person, including an apprentice, employed by an employer under a contract of employment to work for hire or reward and for the purposes of any proceedings in relation to a trade dispute includes any such person who has been dismissed, discharged or retrenched in connection with or as a consequence of that dispute or whose dismissal, discharge or retrenchment has led to that dispute.

OT pay is not guaranteed unless your salary under what EA had defined. However, you have a right to reject the request by the employer. Normally the employer will offer other compensation for OT that they had requested.
 

Expat2016
Member
Wed, 11 Jul 2018 10:11:11 AM

Yes, the IT Engineer earning a salary of above 5,000 RM is seen by the law as a "workman" and not an "employee". And he is also not doing a manual labor since his job is in IT, which is probably in programming or networking.

Therefore, he is not guaranteed to have an OT pay, and his employer has a choice to give him a replacement leave or none at all. Is this correct? I guess it is...

  This topic is closed