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OT for manual labour

Janice  
Guest
Wed, 01 Apr 2009 11:15:38 AM  (Last updated: Wed, 01 Apr 2009 02:20:32 PM)

Dear Mr Siew;

Currently we are paying the manual worker based on normal OT calculation although in the appointment letter stated that they only entitle for fixed OT allowance if staff salary earned more than RM1500. Due to business slow down, our boss wanted us to standardize the OT rate. We have done bench marking with other similar industry. Some company are paying them based on fixed allowance. If we were to use their employment contract to explain to the affected staff on standardizing OT calculation as company business not performing , will that be any problem? We have informally verbally check with the staff, they are not agreeable on the calculation. Pls advise.

Thanks

KL Siew
Administrator
Wed, 01 Apr 2009 11:29:01 AM

You may use whatever method of calculation as long as the result is not less favourable than what the law provides. If your proposed fixed allowance is less favourable, then there will be problems. Since business has slowed down, why not consider reducing OT work?

Janice
Guest
Wed, 01 Apr 2009 12:07:49 PM

We have thought of reducing the OT work. But the problem is they are not able to deliver goods on time to customer which caused to line down. Even though we have request them to justify their work , they have always state the reason that their work is very complex and need time to troubleshoot in order to get accurate dimension. But at most of the time, we have always received complaint of their poor workmanship. So , in that case, can we take other measurement by penalize them for not paying them ot if is due to their sloopy at work. We have make benchmark with our sister company , their quality of work and commitment is much better than ours

KL Siew
Administrator
Wed, 01 Apr 2009 02:20:32 PM

Well, it looks like something quite out of control if that's the case. Why not get some tips from your sister company?

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