FAQs - Labour Ordinance

Q:   What will be the consequences of non-compliance of Labour Ordinance?

A:   For non-compliance cases, each case will be fined for RM10,000 eg. If an Organization have 100 workers and each of them the OT rate is NOT calculated base on LO, therefore the total fine will be RM100,000. 

Q:  Can I get employee’s consent for not paying EPF and Overtime?

A:   No.  Labour Law will overwrite whatsoever unlawful working terms even if with written agreement signed by worker.

Q:   Can I don’t pay my manager overtime?

A:    Regardless of the title of the worker, as long as his pay falls under RM2,000 per month, he is an  employee under the law and therefore he is entitled for overtime claimed.

Q:  Can I terminate a probationer without giving notice?

A:   It is not easy to terminate a probationer even though he is poor performer.  How to justify poor performance, was he properly trained and what will be the correct guideline to monitor his performance?

Q:  Can I hold the final salary of my manager who was earning RM5,000 per month?

A:   No. Withholding of final salary is illegal even if the staff is NOT employee under the law. In monetary issue, the manager can report the case to Labour Office.

Q:  Can I transfer my staff to any other location at my wish?

A:   Yes you may but with no bad intention or purpose of getting rid of the staff.  If  he is being victimized, he can then resign and fail the case in Industrial Relation Court even if he is NOT employee under the law or drawing more than RM2,500 per month.

Q:  What will be the time frame to fail the case in Industrial Relation Court?

A:   Within 60 days from the date of resignation.

Q:  How to manage staff with a lot of disciplinary problems?

A:   In our Managing Misconducts & Domestic Inquiry 2-day course, we will guide you on how to handle minor and major misconducts.  Domestic Inquiry must be held before each termination, we will then bring you to a  ‘REAL’ Domestic Inquiry via our role play.

Q:  How to ensure the bonus is being paid up fairly?

A:   Managing staff performance via Key Performance Indicator (KPI) and to drive everyone working towards company goal and target is essential to motivate staff and at the same time to reward performers. KPI and balanced scorecard course is available and widely been used in rewarding management system.