Thursday, May 18, 2017

MALAYSIA::: Company fined for unauthorised deductions from workers' salaries

An employee outsourcing company was today fined RM32,400 by the magistrate's court for two labour-related offences.
Human Connection HR (M) Sdn Bhd was fined RM24,000 for 18 charges of failing to obtain consent from the Director-General of the Selangor Labour Department to deduct RM100 each from the wages of 18 Nepalese workers for their accommodation.
The company was also fined RM14,400 for 16 charges of failing to pay the minimum wage of RM1,000 as stipulated in the Minimum Wages Order 2016 to 16 Nepalese workers for three months, beginning Aug 2016.
The company, which was represented by its human resources manager, Salmah Ali, pleaded guilty to committing all 34 offences at its office at No 4, Jalan 241, Section 51A near here on Sept 10 and Dec 10, 2016.
In seeking a lenient sentence, Salmah told magistrate Mohd Azali Ibrahim that the company did not pay the minimum wage to the foreign workers because the company faced financial difficulties in 2016, but that the outstanding amount has been paid.
As for the wage deduction for the workers’ accommodation, she said that the company had, in Sept 2016, applied to the Labour Department for approval – which was obtained in Feb, 2017.
Prosecuting officer Siti Nur Alifah Hairuddin, from the Selangor Labour Department, said deducting wages from employees’ salary is a serious issue, because workers are entitled to their salaries.
"The RM100 deduction for each worker for accommodation is also too much. The department only approves a deduction of up to RM50 per employee. And the government had introduced the minimum wage to improve peoples’ living standards as Malaysia heads towards developed country status.
"In this case, those involved were all foreign workers and the incident created a negative impression of the country, as the matter was highlighted in the 'The Guardian' newspaper in England, which stated that fast food company workers were being exploited in Malaysia," Siti added.
Deputy Human Connection HR Company (M) Sdn Bhd, Salma Ali was fined RM32,400 by the Magistrate's Court Petaling Jaya is a mistake to fail to pay the minimum wage and making unauthorized deductions of foreign workers. (pix by SYARAFIQ ABD SAMAD)

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