Tuesday, July 21, 2015

Dividing by 26 or 30: The no pay leave...

An employer usually will seek the advice of Labour Department to calculate wages payable to an employee who started work not on the first day of the month or had taken unpaid leaves.
One school of thought has given the impression that the employer shall pay in full a month  wages as agreed in the contract of service.
But it is well accepted in this country industrial relations, the employer has the right not to pay in full the agreed a month wages if such situation does happen.
Calculating wages payable for that wages period is an issue not so easy to deal with.
If we look back and accepted a contract of service is still a form of contract, many issues raise from it can be settle.
The non-performance of a specific condition of service and one of most important, to observe working days, the employer has the right's to make variations to the agreed amount of a month wages.
I personally will prefer dividing by 26 as define by Employment Act 1955 to obtain the amount of an ordinary rate of pay per day and multiply by the number of non-attend working days. Then the agreed month pay minus the amount calculated, shall be the wages paid to the employee. This is just an opinion, I will not dare to emphasis it as the correct on but an option to be considered since it has a convincing explanation to it...

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