Basic salary split into salary+allowance; allowance deducted

[sammy707]

Hello everyone, I need some advice. I'm currently stuck in an unfavourable contract with 5 more months to serve. One of the terms of the contract states that I should be paid a basic salary of X amount, no allowance memtioned. However, for the past few months, my boss had split X salary into Y basic + Z allowance, which is not in accordance to my contract. As a result, my EPF employer and employee contributions was reduced since my boss calculated EPF contribution based on basic salary.

Now, however, I'm facing a bigger issue as my boss has cut my "allowance", so now my entire take home does not even equate the amount in the contract I had initially sign. I'm putting my foot down this time. Could anyone please advice me what I can do in this situation? Where can I lodge a complaint?

 

[kaity]

@sammy707 Sounds like a clear case for breach of contract

 

[sammy707]

@kaity How should I approach a breach of contract? Bring it to the labour board? I have a lawyer friend who advised me that the compensation expected is not worth sueing them over

 

[zimikurot1221]

@sammy707 Probably but hinting the boss that you would take legal action to get what is stipulated in your contract would make him/her think twice.

 

[deaconbling]

@sammy707 Make you have copies of payslip and bank statements for evidence

 

[blacklagoon]

@sammy707 Before doing anything, documented all the wrong doing first. I.e payslip, contract etc etc. then go to labor office if you don't mind souring the relationship. Otherwise, talk to your boss on your concerns

 

[gerger]

@sammy707 Yes, if your contract has mentioned X amount as basic, but now your X is divided into Y + Z but only is paid Y which is obviously not X, then you can go to labor court and seek professional help. Also, from my understanding, employer cannot not pay employee & employer EPF contribution on the allowance part as well, you need to check with EPF department as well. Good luck OP.

 

[naturalisbest]

@sammy707 Finish your contract. Be patient. Before contract expires, start looking for another job.
Once you are in New job. Only then lodge complain to Labour department. That way, you do not sour relation with your former employer and he will face the labour department. You kill two birds with one stone!

 

[kate1989]

@sammy707 Is it too drastic to meet the boss and tell him to fix it, otherwise you'll send him your notice? Anything lined up? 5 months left but already breaching contract

 

[sammy707]

@kate1989 Part of the terms of this unfavourable contract is that I have to give 3 months' notice AND pay the company a sum equivalent to 6 months' salary to quit before contract expires, which is the only reason I haven't thrown in my notice. I've had some people saying this term is unenforceable, but I hadn't wanted to risk it, since I did sign that contract

 

[kate1989]

@sammy707 Man that's some crazy term there.

Edit: I would probably unilaterally adjust my working hours, since boss also unilaterally adjust my compensation. I'm petty that way.

 

[nobbie]

@sammy707 This is so wrong. Why make you signed and agreed to the contract at the first place? My previous local company trying to do the same thing within 2 years of working . In return, I will be included in the share scheme.

Once I done my own calculations, I rejected the proposal right after and demanded to follow my original contract.

It’s so wrong in so many way. But if you have signed a contract, it probably a different story

 

[ryewolf]

@sammy707 Wow, this is exactly the same as what my previous boss did to reduce my salary in his attempt to manage the 'cash flow issues' of the company. Safe to say that the company has now bankrupted and gone for good.

 

[sammy707]

@ryewolf Thank goodness for that; companies like these do not deserve to exist

 

[smileys]

@sammy707 Go report to labour office. And EPF office too

 

[crteague]

@sammy707 Disclose name