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Overtime for above RM2,000 salary (supervisor, driver)

Anna HR
Sun, 10 Feb 2019 02:27:26 PM  (Last updated: Wed, 20 Feb 2019 01:36:01 PM)

My company is paying supervisors & drivers earning more than RM2000 basic, at an OT flat rate of RM10 per hour & replacement leave for work on PH. The blame will be on HR person - since the supervisor has gone to Jab. Tenaga Kerja to complain on his OT claims. 

I was advice by a previous operations manager (which has already resignedI thought it would be allowed as my previous company also practise that.Eg; Non exec earning above RM 2000 (usually 2500-3200), all our OT is calculated based on RM2000 base salary. (2000/26/8 x 1.5 = RM 14.4231)

1. Is this allowed? I am confused as all my previous company is practising this.

The company is making me liable for this JTK case. Which any fee or damages will be bourned by HR person.

2. is this legal? 

The manager has resigned, now the blame will be on HR person - since the supervisor has gone to Jab. Tenaga Kerja to complain on his OT claims. As the company has left the operation to 1 sole person - Accounts cum Admin cum HR cum operation person.

2. Is there any clause in Act to protect the HR person ?

Thank you.

KL Siew
Sun, 10 Feb 2019 06:12:18 PM

In my opinion, supervisors of workers and drivers are covered by the Employment Act, irrespective of how much wages they are getting. Overtime should be calculated based on their actual wages (salary/26/8) x 1.5 x numbers of overtime hours. Since someone has gone to make complaint at the JTK, in that case, just let the department look into the matter and advice.

Wed, 20 Feb 2019 11:49:35 AM

Hello, I have a question about how to calculate overtime.

Basically our company calculation for overtime is

Overtime= (Basic salary/26/8) x 1.5

but there is some person say that we should add on allowance too? The calculation shall be like this

Overtime= (Basic salary + allowance)/26/8 x 1.5

So what is the correct calculation? Thank you in advance.

KL Siew
Wed, 20 Feb 2019 12:00:42 PM

(Basic salary + allowance)/26/8 x 1.5 is correct.

Wed, 20 Feb 2019 12:42:09 PM

for the allowance, my company just have travel allowance, food allowance and other allowance. should I include all the allowances in the calculation?

KL Siew
Wed, 20 Feb 2019 01:36:01 PM

Go through the definition lf "wages" in the Employment Act quoted below, see whether you can get some guidance from there. Otherwise, if you need more clarifications, give a call to the Labour Department and talk to one of the officers there.

"wages" means basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service but does not include—

(a) the value of any house accommodation or the supply of any food, fuel, light or water or medical attendance, or of any approved amenity or approved service;

(b) any contribution paid by the employer on his own account to any pension fund, provident fund, superannuation scheme, retrenchment, termination, lay-off or retirement scheme, thrift scheme or any other fund or scheme established for the benefit or welfare of the employee;

(c) any travelling allowance or the value of any traveling concession;

(d) any sum payable to the employee to defray special expenses entailed on him by the nature of his employment;

(e) any gratuity payable on discharge or retirement; or

(f) any annual bonus or any part of any annual bonus;

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