Pay Cut

ArchitectRoel

Here is another example: Example: Unlimited contract Basic salary of 10,000 per month Worked for 4 years = 10,000/30 days * 21 days = 7,000 per year worked = 7,000 * 4 years = 28,000 = 28,000 * 2/3 = 18,666 In this case 15% of a full years salary as a "bonus"

QUESTION: 1.BASIC SALARY- Is this based on the contract? or your current salary(incase of increase/increment)?

JojoHK

Here is another example: Example: Unlimited contract Basic salary of 10,000 per month Worked for 4 years = 10,000/30 days * 21 days = 7,000 per year worked = 7,000 * 4 years = 28,000 = 28,000 * 2/3 = 18,666 In this case 15% of a full years salary as a "bonus"

QUESTION: 1.BASIC SALARY- Is this based on the contract? or your current salary(incase of increase/increment)?

its base on your basic salary of last salary

ArchitectRoel

Here is another example: Example: Unlimited contract Basic salary of 10,000 per month Worked for 4 years = 10,000/30 days * 21 days = 7,000 per year worked = 7,000 * 4 years = 28,000 = 28,000 * 2/3 = 18,666 In this case 15% of a full years salary as a "bonus"

QUESTION: 1.BASIC SALARY- Is this based on the contract? or your current salary(incase of increase/increment)?

its base on your basic salary of last salary

So what's the proof of your last salary? the company can always deny it or any employee can declare a high salary for high graduity fee.

JojoHK

Here is another example: Example: Unlimited contract Basic salary of 10,000 per month Worked for 4 years = 10,000/30 days * 21 days = 7,000 per year worked = 7,000 * 4 years = 28,000 = 28,000 * 2/3 = 18,666 In this case 15% of a full years salary as a "bonus"

QUESTION: 1.BASIC SALARY- Is this based on the contract? or your current salary(incase of increase/increment)?

its base on your basic salary of last salary

So what's the proof of your last salary? the company can always deny it or any employee can declare a high salary for high graduity fee.

if you don't have a confirmation letter about your pay rise, you can show your pay slip or bank statement as a proof.

xty

yes, but you also have to read Article 137:

Article 137
Where a worker under an indefinite term contract abandons his work at his own initiative after a continuous service of not less than one year and not more than three years, he shall be entitled to one-third of the severance pay provided for in the preceding article. Such a worker shall be entitled to two thirds of the said severance pay if his continuous service exceeds three years up to five years, and to the full severance pay if it exceeds five years.

Which in effect dillutes the gratuity which you have provided under Article 132:

In your case (example):

21/30 x basic salary divided by 3 ....

I'm not sure where you get the 2 x 21/30 x basic salary - portion of your salary.

But that's for the workers who abandon their work (e.g. absconding).

Well, the article 132 explain it clearly the rule/formula.
"21 days' wage for each of the first five years of service"
21/30 x wage x years of service

xty

its much better on a limited contract, and you will get 3 months notice if you get laid off

Notice is not "that" important but compensation is. I believe both workers having limited or unlimited contracts are entitled for 3 months compensation (based on last basic salary) when arbitrarily dismissed (unless breaking article 120). And gratuity is another which is compulsory. Therefore they are entitled of 3 months compensation PLUS gratuity (PLUS leave balance if any).

Article 123
1. Where a worker is arbitrarily dismissed, the competent court may order the employer to pay him a compensation, to be assessed by the court with due regard to the nature of the work, the extent of damage sustained by the worker and his period of service, and after investigating the work circumstances, provided that such compensation shall in no case exceed the worker's wage for three months, calculated on the basis of his last wage.
2. The provisions of the preceding paragraph shall not prejudice the worker's right to the gratuity he is entitled to and the compensation in lieu of notice provided for in this law.

JojoHK

its much better on a limited contract, and you will get 3 months notice if you get laid off

Notice is not "that" important but compensation is. I believe both workers having limited or unlimited contracts are entitled for 3 months compensation (based on last basic salary) when arbitrarily dismissed (unless breaking article 120). And gratuity is another which is compulsory. Therefore they are entitled of 3 months compensation PLUS gratuity (PLUS leave balance if any).

Article 123
1. Where a worker is arbitrarily dismissed, the competent court may order the employer to pay him a compensation, to be assessed by the court with due regard to the nature of the work, the extent of damage sustained by the worker and his period of service, and after investigating the work circumstances, provided that such compensation shall in no case exceed the worker's wage for three months, calculated on the basis of his last wage.
2. The provisions of the preceding paragraph shall not prejudice the worker's right to the gratuity he is entitled to and the compensation in lieu of notice provided for in this law.

but Article 117 also says:

Either the employer or the worker may terminate an indefinite term contract for a valid reason at any time following its conclusion, by giving the other party a notice in writing at least 30 days prior to termination.

ArchitectRoel

Here is another example: Example: Unlimited contract Basic salary of 10,000 per month Worked for 4 years = 10,000/30 days * 21 days = 7,000 per year worked = 7,000 * 4 years = 28,000 = 28,000 * 2/3 = 18,666 In this case 15% of a full years salary as a "bonus"

QUESTION: 1.BASIC SALARY- Is this based on the contract? or your current salary(incase of increase/increment)?

its base on your basic salary of last salary

So what's the proof of your last salary? the company can always deny it or any employee can declare a high salary for high graduity fee.

if you don't have a confirmation letter about your pay rise, you can show your pay slip or bank statement as a proof.
Ok but some small companies doesn't give salary thru bank they give directly the employees salary evry month w/o any reciept.

dbxsoul

They call it UNLIMITED CONTRACT yet it will expire after 2 or 3 years.

hi there, yes. limited contracts were initially designed with specific tasks or jobs in mind (much like the current mission visas). unlimited are re-negotiable and therefore "unlimited" by comparison.

yes, confusing

JojoHK

Just an update to everyone, I have lodged a complaint a Ministry of Labour, and will go to the hearing on 3rd March.

Will let you guys know the outcome, wish me luck!

P.S. My manager made me go on paid leave bcoz i work in HR, in case i lost the case, I still get 2 weeks free holiday. 😀

shaq

Best of luck with the hearing...

Re paid leave, if you win the case, you must make sure that you receive the full pay entitlement that covers the paid leave as well. Remember that the critical thing is not only the number of annual leave days, but also the pay value of each annual leave day.

JojoHK

An update to everyone...

Today I went to MOL to see the legal advisor with my company representative. The legal advisor said that it is illegal to have pay cut if the employee does not accept such arrangement, the company have no right to do so.

We have 1 week to resolve the problem between us, if we cannot have an agreement by next wednesday, we will go back to MOL and they will transfer us to court.

Since the company were told its illegal to have pay cut, they will have to make a deal with me, either keep me working on full pay or make redudancy and pay me full entitlement.

I want to let everybody know that this is your right to complain and should not let the company get advantage on us.

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