Can Wages Be Paid in Cash in Malaysia? A Comprehensive Guide
The Legal Standpoint
According to the Employment Act 1955 , the payment of wages in cash is prohibited unless approved by both the employee and the Department of Labour Peninsular Malaysia (JTKSM) director-general123. This regulation is in place to avoid manipulation and ensure transparency in wage payment.
Recent Developments
In a recent operation held at Pasar Borong Kuala Lumpur, Human Resources Minister V. Sivakumar revealed that 34 employers were inspected and 19 of them paid wages in cash. Other offences included violations of working hours and non-compliance with the Minimum Wages Order.
Conclusion
In conclusion, cash payments of wages require the approval of both the employee and the JTKSM director-general. Employers are encouraged to pay wages through bank transfers to ensure compliance with the law and avoid hefty fines.
Remember, as an employer, it’s crucial to stay updated with the latest regulations to ensure a smooth and lawful operation of your business. Stay tuned for more updates and insights into the Malaysian labour laws.
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