Employers cannot cut salaries as disciplinary measure, says Sim

PUTRAJAYA: Bosses cannot cut their workers’ salaries as a disciplinary action, says Steven Sim.

The Human Resources Minister said that any salary deductions must follow what is permitted under the Employment Act and added that disciplinary action against employees must go through a domestic inquiry.

He said the law is clear on this.

“If employers encounter workers with disciplinary issues, a domestic inquiry must be done.

“They cannot simply cut salaries as a form of disciplinary action against their workers,” he said after an event at the ministry on Thursday (Feb 22).

Sim was asked about a popular ramen chain that came under fire from social media users over its controversial human resources policies.

It was reported that the ramen chain had allegedly imposed sick leave fees and other arbitrary penalties on its staff for breaches of conduct.

It was reported that a photo of the list of responsibilities for staff and the fines they need to pay if they did certain things was shared on the social media.

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