Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

Protection of Wages Convention, 1949 (No. 95) - Malaysia (Ratification: 1961)

Article 4(2) of the Convention. Partial payment of wages in kind. The Committee recalls that section 116(1) of the Labour Ordinance of Sabah (Cap. 67), as amended in 2005, allows for accommodation, food, fuel, light, water, medical attendance or other services, as may have been previously approved by the Director of Labour, to be provided in addition to cash wages. In accordance with section 113(5) of the same Ordinance, however, the Director of Labour may not permit any deduction from wages in terms of accommodation, food and meals unless she/he is satisfied that the provision of these services is for the benefit of the employee. The same provisions are also reproduced in sections 114(5) and 117(1) of the amended Labour Ordinance of Sarawak (Act A1237). In its previous comments, the Committee observed that there might be the need to verify that the in-kind benefits in question are also fairly and reasonably priced and suggested that the Government should consider some legislation action in this respect. In its latest report, the Government indicates that to date there have been no cases in which the Director of Labour considered an application for partial payment of wages in the form of in-kind benefits. The Committee trusts that should any problem arise in the future the Government will contemplate the possibility of reviewing the relevant provisions in accordance with the requirements of Article 4(2)(b) of the Convention.

Article 13(1). Place and time of the payment of wages. In its previous comments, the Committee drew the Government’s attention to the need to take appropriate action to ensure that the requirements of the Convention as regards the time and place of payment of wages are fully met in those sectors where payment by electronic bank transfer is not yet generalized or practicable. The Committee notes with satisfaction that section 111(3) of the amended Labour Ordinance Sarawak and section 110(3) of the amended Labour Ordinance Sabah now expressly provide that where payment of wages is made in cash it shall be made on working days only and at or near the workplace thus giving full effect to Article 13(1) of the Convention.