Saturday, May 9, 2020

Failure to pay salary

Getting calls that some  companies are refusing to pay the workers' salaries because of the Covid-19 and low revenue.

Salary must be paid on time whether he or she is a Malaysian or a foreign worker.  The employee cannot be treated as an expendable chattle or an object without feelings and emotions by not paying their salary on time.  They, the worker entered into a contract of employment with the company by way of contract  or by conduct for a wage. 

Failure to pay the wage or salary will go to the root of the contract and can lead to a  breach of contract of employment.  The worker can workout and be considered he or she to be constructively dismissed by the employer. 

In a decided case called S Santhi v Tetuan Devan Hussin [2011] 2 ILR 383  the Chairman of the Industrial Court, YA Ahmad Terrirudin Mohd Salleh, he was of the opinion that payment of salary is the most basic and fundamental term in a contract of employment.  Failure to pay the salary is a serious breach and the claimant can walk out of her employment.

Demand your salary if it is due to you.

Ramu

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