“wages” means basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service but does not include – (a) the value of any house accommodation or the supply of any food, fuel, light, or water or medical attendance, or of any approved amenity or approved services; (b) any contribution paid by the employer on his own account to any pension fund, provident fund, superannuation scheme, retrenchment, termination , lay-off or retirement scheme, thrift scheme or any other fund or any other fund or scheme established for the benefit or welfare of the employee; (c) any traveling allowance or the value of any traveling concession; (d) any sum payable to the employee to defray special expenses entailed on him by the nature of his employment; (e) any gratuity payable on discharge or retirement; or (f) any annual bonus or any part of any annual bonus;

Whatever is not defined as wages is therefore: - excluded from calculation for benefits like overtime or encashment of leave, etc., not subject to the restrictions on date of payment of wages and so on. Wages refers to only basic wages plus all other payments in cash. Payment in kind is not wages The cash payment must be for payment in respect of “work done” and the work done is for work that arises out of the contract of service, otherwise it is not considered as wages. Contribution into benefit funds is not wages Traveling allowance is not considered as wages. Retrenchment benefit and gratuity payments are not wages Bonus is not wages.

Any wage period which is not longer than 1 month is lawful.

There are several different requirements, depending on the situation, such as: The normal payment of wages must be made within 7 days of the closing of the pay period. If the wage period is one month, the wages must be paid by the 7th day of the following month. If the wage period is one week, the wages must be paid by the 7th day after the week closes. If the service of the employee is terminated, his final wages must be paid to him by the end of the last working day. If an employee resigns by giving the proper notice and he serves out the notice period in full, the wages are to be paid to him on the last working day. If the employee resigns without giving proper notice, or if he gives proper notice but fails to serve out the notice period, the wages are to be paid within 3 days of the last working day. If he happens to be absent without permission on any day during notice period, he is considered as not having served the notice period in full.

No, it is not ok. Payment of wages must be made out according to the law.

The employer is breaching the contract of service. You are entitled to resign without giving the required notice to him. However, you should only resign without notice only after you take up issue of the late payment with the employer and he continue to delay the payment.

Look again at the definition for wages. You may not withhold the RM400 from any payment due to him for such purpose if that payment is classified under wages. You may withhold the RM400 from payments that do not fall within the definition of wages.

If the tax office has informed your company that you still owe tax money, your employer is entitled to hold your money until you get clearance from the tax office.

You may make all the lawful deductions directly from his wages first. If there is any amount left over, you must pay that into his bank account by the 3rd day following his last day with you. If there is no balance, then you have nothing to pay him for.

You are entitled to lodge a complaint in writing against them at the Labour Office for indemnity in lieu of notice. You will need to bring along his contract of service, contact address and the attendance record up to the last day. He will be called up by the Labour Office.