Ramen chain could face legal action over HR policies, says Sim

KUALA LUMPUR: The ramen chain that allegedly deducted its staff salaries for toilet visits and sick leave may face legal repercussions for breach of conduct.

Speaking to the NST, Human Resources Minister Steven Sim Chee Keong said that such practice violated Part 4 of the Labour Act, which only enables salaries to be deducted in accordance with the law.

"Employers cannot deduct salaries except for items allowed by law, such as Employees Provident Fund (EPF), Social Security Organisation (Socso), and income tax.

"Salary deductions cannot be used for other purposes, including so-called disciplinary measures. Disciplinary measures must be addressed through a proper procedure of Domestic Inquiry (DI)," he said.

He also urged those involved with such discrimination to come forward and lodge a report to the Labor Department so that further actions could be taken.

"For this particular case, I urge those involved to lodge a report with Jabatan Tenaga Kerja so that actions can be taken," he added.

Also commenting on the matter, Malaysia HR Forum CEO, Arulkumar Singaraveloo said the practice was not in line with the current provisions of the Employment Act 1955 which does not allow deductions to wages other than the mandated and approved deduction.

"There is a more efficient and legal way to manage employment related issues that is via disciplinary process or performance management.

"Employers may tend to take an easier way out by penalising employment financially but this is not sustainable and can be a costly mistake if the employees were to file a case against the company with the relevant authorities," he said.

Earlier today, it was reported that a well-known ramen company had come under fire for allegedly imposing sick leave fees and other arbitrary fines on its employees for misconduct.

A social media user yesterday voiced his dissatisfaction and shared a photo of the list of responsibilities for staff and the fines they needed to pay if they did certain things.

The post went viral on multiple social networking platforms with many urging authorities to take action.

According to the post, the food and beverage business imposed penalty fees that range between RM30 to RM500.

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