Pay cut for the staff with salary > RM2,000

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asked on Oct 26, 2016 at 20:20
by   chiaen
Hi all,

As I know that, the Employment Act 1955 only covered the employee with salary < RM2,000. How about the employee with salary > RM2,000? 

Lately I have received the news that the management decided to perform pay cut of 5-10% for certain staff in our company. Since my salary is >RM2,000, which is not under the coverage of EA 1955, may I know:

1. If the company has the right to do so? The company is still earning money now, even the economy is low.
2. I did some study that some company will give the affected employees the document to choose wither they agreed or disagreed on the pay cut. What if the employee opt to disagree for pay cut?

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1 Answers

answered on Oct 27, 2016 at 04:08
by   arun kumar
Company cannot deduct salary unilaterally as that would amount to fundamental breach of your contract and you can then consider walking out on constructive dismissal.
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