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?
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.