THE government should monitor the enforcement of the new minimum wage order in the country. There have been complaints by workers that employers have not made the necessary adjustments to the new wage rates and have taken away some of the employment benefits to cover the wage increase.
These complaints need to be investigated and addressed immediately to prevent confusion and alleviate additional hardships for workers already grappling with financial burdens and rising cost of living.
The minimum wage in Malaysia was increased to RM1,500 per month from RM1,200 previously and came into effect on July 1. This is important as it will help employees deal with the increasing cost of living. As such, we need to ensure employers follow the new wage rate for their employees.
The Minimum Wage Order 2022 was gazetted on April 27, 2022. It was made pursuant to Section 23 of the National Wages Consultative Council Act, 2011 (Act 732), under which wages nationwide should be increased to RM1,500.
However, there was a temporary exemption for employers with fewer than five employees. According to Section 2 of the National Wages Consultative Council Act 2011 (Act 732) “minimum wage” means the basic wage to be or as determined under Section 23 of Act 732. It excludes any allowances or other payments.
Local and foreign employees who have entered into a contract of service with an employer is entitled to receive a minimum wage.
According to Section 2 of the National Wages Consultative Council Act 2011 (Act 732) “contract of service” means any agreement, whether oral or in writing, and whether express or implied, whereby one person agrees to employ another person as an employee and that other person agrees to serve his employer as an employee but does not include an apprenticeship contract.
Domestic servants e.g. maids, cooks, guards, gardeners and personal drivers and apprentices who undergo training for a period of not less than two years are not covered by the minimum wage order.
Employers should abide by the new minimum wage rate order. Failure to implement it is an offence and is punishable by law.
According to Section 43 of the National Wages Consultative Council Act 2011 (Act 732): “An employer who fails to pay the basic wages as specified in the minimum wage order to his employees commits an offence and shall, on conviction, be liable to a fine of not more than RM10,000 for each employee”.
Section 44 of the National Wages Consultative Council Act 2011 (Act 732) further adds:
(1) Where the employer has been convicted of an offence under section 43, the court before which he is convicted may order the employer to pay
(a) the difference between the minimum wage rate as specified in the minimum wage order and the basic wage paid by the employer to the employee, including the outstanding differences; and
(b) other payments accrued from the calculation of wages based on the basic wage, which shall be in accordance with the minimum wage rate as specified in the minimum wage order.
(2) The calculation of the differences and other payments accrued under subsection (1) shall be made in accordance with the Employment Act 1955, Sabah Labour Ordinance or Sarawak Labour Ordinance, as the case may be.
(3) Where an employer fails to comply with an order made under subsection (1), the court shall, on the application of the employee, issue a warrant to levy the employer’s property for the differences and other payments accrued under subsection (1) in the following manner:
(a) by way of distress and sale of the employer’s property in accordance with the same procedure of execution under the Subordinate Courts Rules 1980 (P.U. (A) 328/80) and this execution shall apply mutatis mutandis notwithstanding the amount in the order; or
(b) in the same manner as a fine as provided under section 283 of the Criminal Procedure Code (Act 593)”.
More penalties can be imposed on any employer who fails to take this issue seriously as provided under Sections 45, 46 and 47 of the National Wages Consultative Council Act 2011 (Act 732).
Any employee who feels that their employer has ignored their right to receive a minimum wage should immediately seek help and lodge a complaint to the Department of Labour or National Wages Consultative Council Secretariat at the Human Resources Ministry.
The writer is an Associate Professor at the Faculty of Syariah and Laws, Universiti Sains Islam Malaysia. Comments: letters@thesundaily.com
