Legal Action Against late salary, how to file a co

Ritz Crackers — Fri, 03 Nov 2006 22:19:51 +0800

I noticed a closed topic on the issue which did not receive any good reply and by chance I saw this article in thestarthat might be useful... in particular:

Q. Does the Employment Act cover only those earning RM1,500 and below (I heard it is going to be revised to RM2,000 in the near future)? What about those earning more than RM1,500 - is there no law protecting them?

I understand that the Industrial Court still handles those earning more than RM1,500 but below RM5,000. What about those who earn more than that amount - is the magistrate's court the only solution to any dispute?

I have a couple of friends asking me about this but to no avail as I am not a lawyer or expert in this field. They told me that they are constantly being exploited by their employer with late salary payment (I understand that Employment Act states protect the lower income earner to get the salary not later than the 7th of the following month).

However, because they are managers, earning RM4,000 to RM6,000, the employer tends to bank in the salary in the middle of the following month or even at the end of the following month.

I hope you can advise me on what avenues my friends can seek. Can't the Employment Act protect these people as far as payment of wages is concerned?

Over the years, I have come across this sort of case many times and I feel that these employers tend to take advantage of the loophole in the law.

A. The only thing to do if you earn RM5K or less is to go to the Labour Department to recover your salary. If you earn more than RM5K, the legal recourse is to sue the company in High Court. Many employees do not take this route as they rationalize that it is better to have a late paycheck than no paycheck at all.

For purposes of recovery of wages, an employee earning up to RM5,000 can go to the Labour Department under our Human Resources Ministry and make a claim for recovery of wages, such as non-payment of notices, their salary and even allowances.

When an employee makes a claim before the Labour Dept to recover his wages/salary, the department will call the company in to mediate. If both parties cannot settle, then the Director-General of the Labour Dept can make an order compelling the company to pay up (without the matter being taken to court).

For employees earning more than RM5,000, they will have to sue their employer in the High Court to recover any shortfall in salary owed by the company.

Please note the distinction between recovering your salary and being unfairly dismissed or terminated.

Where you feel you have been unfairly terminated or dismissed, you can take the company to Industrial Court regardless of your salary level (as long as you fall within the definition of a workman).

And here's the Labour Department's contacts:
Ministry of Human Resources, MALAYSIA
Level 6-9, Block D3, Parcel D,
Federal Government Administrative Centre,
62502, Putrajaya
Tel. No. : 03-88865000
Fax. No. : 03-88892381
Email : ksm1@mohr.gov.my

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Legal Action Against late salary, how to file a co