Overtime Allowance and Employment Agreement

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asked on Dec 20, 2017 at 15:11
edited on Dec 29, 2017 at 06:09
I am a director in a company and now I want to engage some foreigners to work for me. I intended to enter an agreement with them for the employment. I decided to give them RM5 for the overtime works allowance but this is contrary to Malaysian law as what i get to know because their salary/wages is RM1500 to RM2000.

May I know is there any ways for me to engage them for RM1500 or RM2000 and grant an RM5 for the overtime allowances? If I engage a lawyer to do the employment agreement, how much estimated will the lawyer charge me for the legal fees of preparing it?
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2 Answers

answered on Dec 20, 2017 at 19:12
You mean you are going to give them an allowance of RM5 regardless of the hours that they work for overtime..?
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answered on Dec 20, 2017 at 21:47
edited Dec 29, 2017 at 06:22
If you intend to employ foreign workers, go update yourself from the various government agencies. Foreign Legal Workers are accorded the same protection rights under Malaysian Labour Laws and pay income tax in 2018.

If the RM5 is a food allowance as on top of the legal calculations of overtime... everything's fine. It is more expensive and having tonnes of paperwork to employ legal foreigner in 2018, unless for jobs like toilet cleaner or wet trash disposal which locals avoided.

And on top of that, is a mandatory 2 years contract. Can be very very hardworking for the first 6 months, after that work like piggy. To terminate you have to pay the 18 months of remaining contract for wages.

If I engage a lawyer to do the employment agreement
There is a standard non-revocable foreign employment contract available @IMMIGRATION
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