Section 60E Employment Act 1955

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asked on May 22, 2003 at 23:17
by   yip
Puan Ira,
I have a few enquiries on the application of Section 60E of Employment Act 1955 for employee earning more than RM5000 monthly salary.

Q1. Can an employee earning more than RM5000 monthly salary seek remedy against his employer under Sec 60E(2) if he did not finish his leave entitlement for the year? Example, if his leave entitlement is 15 days and he finished 10 days of his leave entitlement, can he seek compensation from his employer for the 5 days leave not taken?

Q2. Can an employee earning more than RM5000 monthly salary seek remedy against the employer under Section 60E(2) if his employer unilaterally change the leave plan without compensation or agreement from the employee? Referring to the same example in Q1 above, if his service contract entitle him to carry forward the 5 days leave not taken previously, but now employer has change the annual leave rules by disallowing the carry forward of the leave not taken without any written agreement from employee, can the employee seek compensation or take action against his employer under section 60E(2)?

Q3. If Employment Act 1955 is not applicable for employee earning more than RM5000, is employer liable under Sec 60E(3A) to pay such employee for any leave not taken upon his termination/leaving the company? Or, in other word, does the annual leave not taken carry any financial value to the employee or the employer if the employee were to leave the company?

Q4. If an employer who has been in compliance with Sec 60E(3A) of the Employment Act 1955 in compensating its employee who earn more than RM5000 monthly salary, does that mean that the employer will also be automatically be liable to comply with Sec 60(E)(2)?

Q5. If Employment Act 1955 is not applicable for employee who earn more than RM5000 monthly salary, can an employer who has been in compliance with Sec 60E(3A) and/or Sec 60E(2), stop its practise now without any compensation or agreement from its employee?

Thank you.
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2 Answers

answered on May 23, 2003 at 02:10
by   businessbytes
1. The Employment Act does not cover employees earning more than RM1500.Employees whose earnings do not exceed RM5000/- are allowed to file claims for benefits under their contracts of employment at the "Labour Court".Consequently Sec. 60E does not apply to you.
However if your contract has provisions for annual leave or has a provision which states "Annual leave eligibility is as per Employment Act" then you can exercise your rights under the contract in a civil claim at the Small Claims Court,Magistrate's or Session Courts depending on the amount to be claimed.
2. Whether you can claim any leave not taken will depend on your contract or company policy. For example if the company decides that leave cannot be carried forward then obviously you should exhaust your entitlement.If however you are unable to complete the annual leave entitlement in that year owing to exigencies of service then you could apply for the leave to be carried forward or negotiate with the employer to encash your balance. You cannot take action agains your employee under section 60E2. You may file a civil claim in a civil court.
3. Depends on your contract. If the contract says you are eligible for leave and you have a balance of leave not take because of work commitments you can take your employer to the civil courts.
4. No the Emp. Act does not apply.
5. you need to look at what yr contract says on annual leave entitlement.
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answered on May 26, 2003 at 01:17
by   yip
Puan Ira,

Thanks for the quick reply.

Need to further clarify some fine points.

The service contract or appointment letter referred to a set of benefit guidelines which did not contain any absolute right of the employer to change the benefits including annual leave. Can employer change the annual leave entitlement of the employee anytime after the signing of the service contract (e.g. reducing the number of annual leave entitled)?

On point (5), if there is clause in the service contract or in employer's HR guideline, can employer now change the annual leave to be in-line with Employment Act such that employer will not be responsible to compensate its employee who will be leaving the company for any annual leave not taken (insist that employee will utilize such leave)?

Since employee earning more than RM5000 is not protected under Employment Act, and if his contract of service did not give him any right to disagree with employer to make changes to his annual leave entitlement, can I assume that employer can make change to the company annual leave plan unilaterally even if the change is to the disadvantage to the employee, e.g. reducing the number of annual leave days entitlement, disallow the carry forward of annual leave not taken in any year. If this is true, what are employee's right to disagree with the change or protect his right?

Thank you.
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