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Employment law & salary crediting prior to bankruptcy

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asked on Feb 27, 2019 at 00:14
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edited on Mar 17, 2019 at 06:01
 
I just got a new job after jobless for 3 years and 6 months. I have been doing freelance and making barely enough for daily meals. When I was still working, I already engaged with Agensi Kaunseling & Pengurusan Kredit (AKPK) and have been paying the instalment promptly. But after I lost my job due to Voluntary Separation Scheme (VSS), I stopped paying as I can't afford anymore. Banks have been issuing multiple letters and frozen all my savings account. That's also the reason I didn't actively looking for new job as I can't have an account for salary crediting. Until recently, I learned about joint saving account. I have yet to be declared bankrupt so Malaysia Department of Insolvency (MdI) is yet to be in the picture.

My questions:

1. I already opened a joint saving account with my wife, with my wife's name as primary account holder. Can my employer refuse to credit my salary into this joint account since my name doesn't appear when they perform payroll? As you know, secondary account holder name doesn't appear in system, only primary account holder does. Any solution to this? Or suggestion of what I can do to earn a living?

2. When I'm declared bankrupt, this joint account will be frozen too? And bank can take away 50% of the money inside the account? or actually MDI taking the money inside this joint account?

3. How long it takes for MDI to give letter for opening an account for my salary? Or can MDI unfreeze this joint account for my salary?

4. Will MDI report my bankruptcy to my employer? Will my employer find out about my situation even MDI did not inform them? Any possible way to avoid my employer finding out about my situation?

5. Before bankruptcy, bank cannot freeze my joint saving account right?

6. Before bankruptcy, can bank take away 50% of the money inside this joint account? or even 100% of the money inside this account?

7. Before bankruptcy, can bank garnish 50% or 100% of my salary being credited into this joint account?

I'm living in fear everyday... before I got a job and now even I got a job I still fear I won't be getting my salary.... with all the above scenarios.....

Please help....

Thanks.
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6 Answers

answered on Feb 27, 2019 at 16:11
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Answer to Q1

Print a copy of joint account passbook which show both names. Write a letter to payroll department, requesting salary to credit to this account. Attach the passbook copy. 
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answered on Feb 27, 2019 at 21:53
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edited Mar 17, 2019 at 06:04
 
@Jaga,

Thanks for your answer.

I do plan on doing that.... but fear my employer still insist on individual account....
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answered on Feb 27, 2019 at 22:48
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edited Mar 17, 2019 at 06:04
 
Please read this:

https://www.lawyerment.com/answers/questions/13161/is-it-legal-to-ask-my-employer-to-pay-salary-in-cash
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answered on Mar 3, 2019 at 15:53
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edited Mar 17, 2019 at 06:06
 
@vkpc, I did read thru the threads you noted above.

The thing is I can't let my employer know about my situation, or else they will not employ me anymore. I understand we have rights under Malaysia Law, but then employer can choose not to employ me instead of paying me in cash. Or you're saying employer should be able to pay into a joint saving account even I'm a secondary name on this joint account? By "should be able" meaning their payroll bank won't question my HR about my saving account being a joint account and my name being secondary?

Another issue I just remembered is my employer payroll bank is one of the banks I owed them money, it's RHB. And I must have an account at RHB in order to receive my salary. In this situation, can RHB withhold my salary straight without crediting into my joint account on every month during payroll cycle?
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answered on Mar 3, 2019 at 17:09
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I understand we have rights under Malaysia Law, but then employer can choose not to employ me instead of paying me in cash.
If you are already employed and they want to sack you for poor reasons like paying salary into Joint Account or Cash, they will get into BIG trouble when you sue them at the Industrial Court later.

Or you're saying employer should be able to pay into a joint saving account even I'm a secondary name on this joint account? By "should be able" meaning their payroll bank won't question my HR about my saving account being a joint account and my name being secondary?
They wont question, you are overly worried for nothing.

Another issue I just remembered is my employer payroll bank is one of the banks I owed them money, it's RHB. And I must have an account at RHB in order to receive my salary. In this situation, can RHB withhold my salary straight without crediting into my joint account on every month during payroll cycle?
They cannot withhold.  Joint Accounts are protected by law.

STOP WORRYING AND GET GOING !
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answered on Mar 3, 2019 at 23:55
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edited Mar 17, 2019 at 06:06
 
Thanks @vkpc. Hope everything will be smooth as it should be..... 
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