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Retail Industry Employment Contract

Wed, 13 Jun 2018 05:05:03 PM  (Last updated: Tue, 19 Jun 2018 02:09:09 PM)

As there is a working culture difference in the retail industry, I would like to know if these terms & conditions stated in the Contract are legally acceptable in the labour law :

1)  6 month contract for retail staff, salary above RM3k, during this period, there will not be any deduction of PCB, EPF & Socso.  As this is stated in the employment contract, is this acceptable between the employee and employer or it's totally against the labour law for not contributing.

2) During this initial 6 months, no entitlement of leave, sick leave or MC.  It will be deducted from our salary if we dont turn up for work or require to apply leave.

3) Off days for retail staffs are ALWAYS on a weekday, never weekend.  Annual leave application are also not allowed on weekend even though some employees expressed their need to do so.  Is this considered as abuse of power or no such law to cover this?

4)  Does employer have the right to ask employee to work full day i.e. 10am - 10pm with only 1 off day per week? Is this part of retail culture?

5) On a very regular basis, employee has to stay back after the Mall closes to set up the promotional display area, so as not to disrupt normal Mall hours, as per requirement by the Mall Management.   No replacement hours given nor any compensation entitlement provided by employer.   Some even had to report back for their morning shift the next day.   Is this the norm and expected in the retail industry that the employees have to accept this sort of work environment?

6)  Retail staff turnover is quite high due to the above.  Staffs rather resign than say anything as they are afraid that they will be penalised if they are found to be the "whistle blower".   Employer is aware of staff high turnover but rather than identifying the root cause of the problem, they have the "dont care" attitude and continue with their policies, knowing that when 1 staff  resign, there will always be other people willing to join.

Pls give your advice as I am totally unfamiliar with the ways of retail industry.   I find that ppl working in retail industry are being exploited and not being treated fairly. 

Tue, 19 Jun 2018 12:12:09 PM

Will try answer briefly below

1 & 2. need to check contract type either contract for service or contract of service

contract of service : employee and employer

As relationship employee and employer established therefore need contribute to all statutory requirement

AL & MC shall be pay leave

Contract for service : Independent contractor & Hirer

No statutory requirement

AL & MC will not be considered and wont be pay

3. Labour law never say rest day needed to be weekend. It stated 1 rest day per week. And yes, employer have right to reject leave application with solid reason. However, if Employer keep refusing the leave till the employee cannot enjoy his right then employer shall seem to breaching the contract of service.

4. Max working hour shall be 8 hours/day, 48 hours/week. Beyond that shall be consider as OT

5. I believe that is pretty normal for mall to stay back. However, the employer shall consider some compensation package

6. Since employer do not offer compensation package for those not entitled for OT, for sure they wont work long and hence high turnover.

Tue, 19 Jun 2018 02:09:09 PM

Thank you Gon.  We will study the contract again base on your reply.

  This topic is closed