Sim: Bosses cannot simply cut salaries


PUTRAJAYA: Disciplinary issues involving employees must go through domestic inquiry and bosses cannot cut their workers’ salaries as punitive action, says Steven Sim (pic).

The Human Resources Minister said that any salary deduction must only be according to what was permitted under the Employment Act.

Deductions that are allowed under the Act include those for the Employees Provident Fund, Socso (Social Security Organisation) and income tax.

“The laws are clear on this. If employers encounter workers with disciplinary issues, a domestic inquiry must be conducted.

“They cannot simply cut salaries as a form of disciplinary action against their workers,” he said after an event at the ministry yesterday.

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

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

A photo of the list of responsibilities for staff and the fines they need to pay if they did certain things, was shared on social media.

The chain is said to have lodged a police report.

Sim called on those with information on the violation of the Act, to lodge a formal report so that the matter could be investigated.

“I am well aware of netizens’ good intentions but such matters concern the law and we need a report to be lodged.

“This will enable the Labour Department to act,” he said.

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