Company has released a new edition of employee handbook recently. Reason of edition update is because they have increased the termination period notice and probation period. All staffs are given 1 month to sign and acknowledge the changes otherwise salary will be held until the employee signs.

My question here is, do the employers have such rights to do so?

Thanks.

clause 19 of Malaysian Employment Act:

19. Time of payment of wages

Every employer shall pay to each of his employees not later than the seventh day after the last day of any wage period the wages, less lawful deductions, earned by such employee during such wage period:
Provided that if the Director General is satisfied that payment within such time is not reasonably practicable, he may, on the application of the employer, extend the time of payment by such number of days as he thinks fit.

Looks like they are within rights to withhold your salary..

What I meant was, today 23/9 until 23/10, that is the period we are given to read the handbook and sign. Our payroll is 25th every month. If by 25th, for those still not signing, then will hold the salary until agree to sign...

Firstly the Employment Act only applies if your salary is RM2000.00 or less per month. Even then Clause 19 does not allow an employer to withhold your salary for any reason.

Secondly, unless you employment agreement specifically provides for the holding of your salary in express terms, it is a fundamental breach of your employment agreement and/or labour rights and no employer is entitled to withhold your salary for any reason whatsoever.

I'm fed up with employers thinking they can get away with this crap.

You can quote me on this.

This post has been edited by edoras81: Sep 24 2014, 02:22 AM

Sounds like you can legally debate this, but it would not be productive for your long term future at that company to do so. Smaller, local companies usually do this, probably because they see some need to change policies to try protect the business at that point in time (such as very high staff turnover, etc).

If the changes to notice period and probation period is not excessive, then I personally don't see it as a big deal. If its that bad a change then it will impact their future hiring and probably it will be changed again later. I doubt it is that terrible a change but really depends on how each individual feels about it.

They are smart enough to put a statement in the appointment letter that employee handbook can overwrite whatever conditions written in the letter. But this wasn't written in mine though because only recently they implemented this according to my newer colleagues.

Nope, holding salary wasn't stated anywhere.

Well, I don't mind the changes, but I want to speak up because if they can do this for this time, I am pretty sure they will use the same tactic again in the future. I am seeking for advices here because I feel that, it's very unfair for the employees. And yet, no one dares to utter a word, that really amazes me.

Just quit then.
Don't waste ur time in such company

a company that resort to threats isn't a company worth working for

If you want me to give you Malaysian law cases which specifically say that withholding salary is a fundamental breach of employment agreement please pm me.

The company cannot WITHHOLD the salary that you've already done the work for ie. last month's salary or this month's salary if it's already end of month.

But they can refuse to PAY you a salary in the future ie. you're terminated (with the appropriate notice period or compensation in lieu of course).

This is correct and I would like to add that this is the ONLY reason for the employer to stop paying you salary i.e. when they terminate you or you resign.

A contract is legally binding until a new contract is signed.

Till signed all the old terms and conditions apply.

The company can choose to terminate you by giving you the notice in your current contract if you don't sign a new contract.

The term management reserve the rights to amend certain terms of the contract is still valid. However if they need you to sign a new contract for their amendments then the amendments needs your consent before being put in force. And in no terms can they withold your salary unless you owe monies under contract to the company.

If I were you I will fight it out. They will give in if they cant justify. You can also walkaway from the company (due to breach of contract if they don't pay you) without serving a notice period (never heard of this being done in Malaysia before----but I would do it) or you can sue company to get whats owed to you.

unless you have explicitly give them a written approval for them to either hold and deduct your salary. If not, they have no right to do so.