Errant bosses face action over minimum wage

January 20, 201410:11 am291 views
Errant bosses face action over minimum wage
Errant bosses face action over minimum wage

MINIMUM WAGE: Those who fail to abide by the policy are liable to RM10,000 fine, says minister.


PUTRAJAYA: Stern action will be taken against employers who fail to comply with the minimum wage policy.

Deputy Human Resources Minister Datuk Ismail Abd Muttalib said employers had been given time to implement the policy. He said companies that were given a deferment until Dec 31 last year were required to adhere to the policy.

“No more deferment or extension will be given to companies pertaining to the policy as the government has given them enough time to prepare (for it),” he said after the ministry’s monthly assembly here.

A total of 1,044 deferments were given to individual employers on Sept 10 last year as they needed to restudy their business model and wage structure.

The Minimum Wage Act 2012 was enforced on Jan 1 last year.

Ismail said any failure by employers in the private sector in paying the minimum of RM900 (peninsula) or RM800 (Sabah, Sarawak and Labuan) to their employees would lead to action being taken under Section 43 of the National Wages Consultative Council Act 2011.

“An employer who fails to pay the minimum wage is committing an offence and upon conviction is liable to a fine of not more than RM10,000 for each employee, and a fine of not more than RM20,000 for repeat offences or a jail term of not more than five years.”

It was learnt that in the first two weeks of this month, three investigations have been carried out against employers in Selangor.

At the same time, Ismail commended employers as a majority of them had implemented the minimum wage policy.

On whether a revision would be made on the minimum wages, Ismail said it would carried out every two years.


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