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Salary Deduction due to recession

James Chong  
Sat, 07 Mar 2009 09:53:01 AM  (Last updated: Sat, 07 Mar 2009 10:30:52 AM)

Dear sir,

Our company issue a memo dated 4th mar 09 to all staffs that staffs salary above RM2000 will be deducted 5% to 30% respectively effective from Mar 09 due to recession. Is this action lawful under employment act?



KL Siew
Sat, 07 Mar 2009 10:30:52 AM

In the first place, staff with salary above RM2000 are not covered by the Employment Act. With the current gloomy global economic situation, you are not the only one facing such a problem. Negotiate with your employer if you feel the cut is too unkind or you may consult the Industrial Relations Department see whether they can be of any help.

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