CHAPTER
XIV 102 Worker
not liable to default of another - Repealed
CHAPTER
XIV. 102. Worker not liable for default of another. - Repealed - 103. Limitation on advances to employees. (1) No employer shall during any one month make to an employee an advance or advances of wages not already earned by such employee which exceeds in the aggregate the amount of wages which the employee earned in the preceding month from his employment with such employer, or if he has not been so long in the employment of such employer, the amount which he is likely to earn in such employment during one month, unless such advance is made to the employee- (a) to enable him to purchase a house or to build or improve a house; (b) to enable him to purchase land; (c) to enable him to purchase livestock; (d) to enable him to purchase a motorcar, a motorcycle or a bicycle; (e) to enable him to purchase shares of the employer's business offered for sale by the employer; (f) for any other purpose- (i) in respect of which an application in writing is made by the employer to the Director; (ii) which is, in the opinion of the Director, beneficial to the employee; and (iii) which is approved in writing by the Director, provided that in granting such approval, the Director may make such modifications or impose such conditions as he may deem proper; (g) for such other purpose as the Minister may, from time to time, by notification in the Gazette, specify either generally in respect of all employees, or only in respect of any particular employee, or any class, category or description of employees. (2) No employee shall be held to be liable for the amount of any advance made to him by his employer which exceeds the amount authorised under subsection (1). (3) No non-resident employee shall be held to be liable for the amount of any moneys expended on his behalf prior to his arrival in Sarawak in consideration of his engagement to work within Sarawak, other than an advance of wages as may be approved by the Director. (4) Any advance of wages may be recovered in instalments by deduction from wages in such manner as may be approved by the Director. (1) Every employee shall be entitled to a paid holiday at his ordinary rate of pay on the following days in any one calendar year: (a) on sixteen of the gazetted public holidays as specified under the Public Holidays Ordinance (Sarawak), four of which shall be - (i) the National Day; (ii) the Birthday of the Yang di-Pertuan Agong; (iii) the Birthday of the Yang di-Pertua Negeri Sarawak; and (iv) the Workers' Day: Provided that the other twelve public holidays referred to in this paragraph be fixed with regard to the religion and customs of the employees; and (b) on any day in addition to the gazetted public holidays referred to in paragraph (a) declared as a public holiday by the Government of the State: Provided that if any of the public holidays referred to in paragraphs (a) and (b) falls on a rest day, the working day following the rest day shall be a paid holiday in substitution of that public holiday. (2) The employer shall exhibit conspicuously at the place of employment before the commencement of each calendar year a notice specifying the remaining twelve gazetted public holidays in respect of which his employees shall be entitled to paid holidays under paragraph (a) of subsection (I): Provided that by agreement between the employer and an employee any other day or days may be substituted for one or more of the remaining twelve gazetted public holidays provided for in paragraph (a) of subsection (1). And provided further that the employer may grant the employee any other day as a paid public holiday in substitution for any of the public holidays referred to in paragraph (b) of subsection (1). (3) Where any of the public holidays or any other day substituted therefor as provided in subsection (1) or (2) falls within the period during which an employee is on sick leave or annual leave to which the employee is entitled under this Ordinance, or falls during the period of temporary disablement under the Workmen's Compensation Act 1952, or under the Employees' Social Security Act 1969, the employer shall grant another day as a paid holiday in substitution for such public holiday or the day substituted therefor. (4) Any employee who absents himself from work on the working day immediately preceding or immediately succeeding a public holiday or two or more consecutive public holidays or any day or days substituted therefor under this section without the prior consent of his employer, shall not be entitled to any holiday pay for such holiday or consecutive holidays unless he has a reasonable excuse for such absence. (5) An employee on a monthly rate of pay shall be deemed to have received his holiday pay if he receives from his employer his monthly wages, without abatement (other than as provided under subsection (4)) in respect of the holiday, for the month in which the holiday falls. (6) Notwithstanding subsections (1), (2) and (3), any employee may be required by his employer to work on any paid holiday to which he is entitled under those subsections, and in such event he shall, in addition to the holiday pay he is entitled to for that day - (a) in the case of an employee employed on a monthly, weekly, daily, hourly, or other similar rate of pay, be paid two days' wages at the ordinary rate of pay; or (b) in the case of an employee employed on piece rates, be paid twice the ordinary rate per piece, regardless that the period of work done on that day is less than the normal hours of work. (7) For any overtime work carried out by an employee referred to in paragraph (a) of subsection (6) in excess of the normal hours of work on a paid public holiday, the employee shall be paid at a rate which is not less than three times his hourly rate of pay. (8) For any overtime work carried out by an employee referred to in paragraph (b) of subsection (6) in excess of the normal hours of work on any paid holiday, the employee shall be paid not less than three times the ordinary rate per piece. (9) An employee who works on a holiday shall be entitled to a travelling allowance for that day if payable to him under the terms of his contract of service with his employer but such employee shall not be entitled under this subsection to receive an increased rate of any housing allowance or food allowance. (10) For the purposes of this section if any such holiday falls on a half working day, the ordinary rate of pay payable shall be that of a full working day. (1) Except as provided in this section, an employee shall not be required under his contract of service to work - (a) more than five consecutive hours without a period of leisure of not less than thirty minutes duration; (b) more than eight hours in one day; (c) in excess of a spread over period of ten hours in one day; (d) more than forty-eight hours in one week: Provided that - (aa) for the purpose of paragraph (a), any break of less than thirty minutes in the five consecutive hours shall not break the continuity of that five consecutive hours; (bb) an employee who is engaged in work which must be carried on continuously and which requires his continual attendance may be required to work for eight consecutive hours inclusive of a period or periods of not less than forty-five minutes in the aggregate during which he shall have the opportunity to have a meal; and (cc) where, by agreement under the contract of service between the employee and the employer, the number of hours of work on one or more days of the week is less than eight, the limit of eight hours may be exceeded on the remaining days of the week, but so that no employee shall be required to work for more than nine hours in one day or forty-eight hours in one week. (2) The Director may, on the written application of an employer, grant permission to the employer to enter into a contract of service with any one or more of his employees, or with any class, category or description of his employees, requiring the employee or employees, or the class, category or description of employees, as the case may be, to work in excess of the limit of hours prescribed under paragraphs (a), (b), (c) and (d) of subsection (1) but subject to such conditions, if any, as the Director may deem proper to impose, if he is satisfied that there are special circumstances pertaining to the business or undertaking of the employer which renders it necessary or expedient to grant such permission; and the Director may at any time revoke the approval given under this subsection if he has reason to believe that it is expedient to do so. (3) Any person who is dissatisfied with any decision of the Director under subsection (2) may, within thirty days of such decision being communicated to him, appeal in writing to the Minister. (4) On an appeal made to him under subsection (3), the Minister may make such decision or order as appears just, and such decision or order shall be final. (5) An employee may be required by his employer to exceed the limit of hours prescribed in subsection (1) and to work on a rest day in the case of - (a) any accident, actual or threatened, in or with respect to his place of work; (b) any work, the performance of which is essential to the life of the community; (c) work essential for the defence or security of Malaysia; (d) urgent work to be done to machinery or plant; (e) any interruption of work which was impossible to foresee; or (f) work to be performed by employees in any industrial undertaking essential to the economy of Malaysia or any of the essential service as defined in the Industrial Relations Act 1967: Provided that the Director shall have the power to enquire into and decide whether or not the employer is justified in calling upon the employee to work in the circumstances specified in paragraphs (a) to (f). (6) For any overtime work carried out in excess of the normal hours of work, the employee shall be paid at a rate which is not less than one and a half times his hourly rate of pay irrespective of the basis on which his rate of pay is fixed. (7) No employer shall require or permit an employee to work overtime exceeding such limit as may be prescribed by the Minister from time to time by rules made under this Ordinance and the rules so made may provide different limits for different classes, categories or descriptions of employees, and such rules may also provide for such classes, categories or description of employees, as may be specified, to be excluded from their application: Provided that any work carried out on a rest day, or any of the gazetted public holidays referred to in subsection (1) of section 104, or on any paid holiday substituted therefor under subsection 104, shall not be construed as overtime work for the purposes of this subsection: And provided further that the Director may, on application made to him in writing by an employer or by an employee or a group of employees, permit any particular employee, or any group, class, category or description of employees in any particular industry, undertaking or establishment to work overtime in excess of the limit of hours so prescribed, subject to such conditions, if any, as he may deem proper to impose. (8) Any person who is dissatisfied with any decision of the Director made under subsection (7) may, within thirty days of such decision being communicated to him, appeal in writing to the Minister. (9) In deciding any appeal made to him under subsection (8), the Minister may make such decision or order as appears just and such decision or order shall be final. (10) The Minister may make rules for the purpose of calculating the payment due for overtime to an employee employed on piece rates. (11) Except in the circumstances described in paragraphs (a), (b), (c), (d) and (e) of subsection (5), no employer shall require any employee under any circumstances to work for more than twelve hours in any one day. (12) This section shall not apply to employees engaged in work which by its nature involves long hours of inactive or stand-by employment. (13) For the purposes of this Chapter, "hours of work" means the time during which an employee is at the disposal of the employer and is not free to dispose of his own time and movements. (1) Notwithstanding paragraphs (b), (c) and (d) of subsection (1) of section 105, but subject to paragraph (a) of subsection (1) of that section, an employee who is engaged under his contract of service in shift work may be required by his employer to work more than eight hours in any one day or more than forty-eight hours in any one week but the average number of hours worked over any period of three weeks, or over any period exceeding three weeks as may be approved by the Director, shall not exceed forty-eight hours per week. (2) The approval of the Director in subsection (1) may be granted if the Director is satisfied that there are special circumstances pertaining to the business or undertaking of the employer which render it necessary or expedient for him to grant the permission subject to such conditions as he may deem fit to impose. (3) The Director may revoke the approval given under subsection (2) at any time if he has reason to believe that it is expedient so to do. (4) Except in the circumstances described in paragraphs (a), (b), (c), (d) and (e) of subsection (5) of section 105, no employer shall require any employee who is engaged under his contract of service in shift work to work for more than twelve hours in any one day. (1) Every employee shall be allowed in each week a rest day of one whole day as may be determined from time to time by the employer, and where an employee is allowed more than one rest day in a week, the last of such rest days shall be the rest day for the purposes of this Chapter: Provided that this subsection shall not apply during the period in which the employee is on maternity leave as provided under section 84, or on sick leave as provided under section 105E, or during the period of temporary disablement under the Workmen's Compensation Act, 1952, or under the Employees' Social Security Act 1969. (2) Notwithstanding sub-section (1) and the interpretation of the expression "day" in section 2, in the case of an employee engaged in shift work any continuous period of not less than thirty hours shall constitute a rest day. (3) Notwithstanding sub-section (1), the Director, on a written application by an employer and subject to any conditions he may deem fit to impose, may permit the employer to grant the rest day for each week on any day of the month in which the rest days fall and the day so granted shall be deemed to be the employee's rest day for the purposes of this section. (4) The employer shall prepare a roster before the commencement of the month in which the rest days fall informing the employee of the days appointed to be his rest days therein, and where the same day in each week has been appointed as the rest day for all employees in the place of employment, the employer may, in lieu of preparing a roster, display a notice at a conspicuous place in the place of employment informing the employees of the fixed rest day so appointed. (5) Every such roster and every particular recorded therein shall be preserved and shall be made available for inspection for a period not exceeding six years from the last day of the month in respect of which the roster was prepared or cause to be prepared. (1) Except as provided in subsection (5) of section 105, no employee shall be compelled to work on a rest day unless he is engaged in work which by reason of its nature requires to be carried on continuously or continually by two or more shifts: Provided that in the event of any dispute the Director shall have power to decide whether or not an employee is engaged in work which by reason of its nature requires to be carried on continuously by two or more shifts. (2) An employee employed on a daily, hourly or other similar rate of pay who works on a rest day, he shall be paid for any period of work - (a) which does not exceed half his normal hours of work, one day's wages at the ordinary rate of pay; or (b) which is more than half but does not exceed his normal hours of work, two days' wages at the ordinary rate of pay. (3) An employee employed on a monthly rate of pay who works on a rest day shall be paid for any period of work - (a) which does not exceed half his normal hours of work, wages equivalent to half the ordinary rate of pay for work done on that day; or (b) which is more than half but which does not exceed his normal hours of work, one day's wages at the ordinary rate of pay for work done on that day. (4) For any work carried out in excess of the normal hours of work on a rest day by an employee mentioned in subsection (2) or (3), he shall be paid at a rate which is not less than two times his hourly rate of pay. (5) An employee employed on piece rates who works on a rest day he shall be paid twice his ordinary rate per piece. (1) An employee shall be entitled to paid annual leave of - (a) eight days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of less than two years; (b) twelve days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of two years or more but less than five years; and (c) sixteen days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of five years or more, and if he has not completed twelve months of continuous service with the same employer during the year in which his contract of service terminates, his entitlement to paid annual leave shall be in direct proportion to the number of completed months of service: Provided that any fraction of a day of annual leave so calculated which is less than one-half of a day shall be disregarded, and where the fraction of a day is one-half or more it shall be deemed to be one day: And provided further that where an employee absents himself from work without the permission of his employer and without reasonable excuse for more than ten per centum of the working days during the twelve months of continuous service in respect of which his entitlement to such leave accrues he shall not be entitled to such leave. (2) The paid annual leave to which an employee is entitled under subsection (1) shall be in addition to rest days and paid holidays. (3) Where an employee who is on paid annual leave becomes entitled to sick leave or maternity leave while on such annual leave, the employee shall be granted the sick leave or maternity leave, as the case may be, and the annual leave shall be deemed to have not been taken in respect of the days for which sick leave or maternity leave is so granted. (4) The employer shall grant and the employee shall take such leave not later than twelve months after the end of every twelve months continuous service and any employee who fails to take such leave at the end of such period shall thereupon cease to be entitled thereto: Provided that an employee shall be entitled to payment in lieu of such annual leave if, at the request of his employer, he agrees in writing not to avail himself of any or all of his annual leave entitlement. (5) Notwithstanding sub-section (4), upon the termination of an employee's contract of service, the employee shall be entitled to take before such termination takes place the paid annual leave due to be taken in the year in which the termination takes place in respect of the twelve months of service preceding the year in which the termination takes place, and, in addition, the leave accrued in respect of the completed months of service during the year in which the termination takes place. (6) The employer shall pay the employee his ordinary rate of pay for every day of paid annual leave, and an employee on a monthly rate of pay shall be deemed to have received the annual leave pay if he receives his monthly wages, without abatement in respect of such annual leave, for the month in which he takes such annual leave. (7) If the contract of service has been terminated by either party before an employee has taken the paid annual leave to which he is entitled under this section, the employer shall pay the employee his ordinary rate of pay in respect of every day of such leave: Provided that this subsection shall not apply where an employee is dismissed under paragraph (a) of subsection (1) of section 14. (8) Where an employee is granted leave of absence without pay by his employer during any period of twelve months and the period of absence exceeds in the aggregate thirty days, that period of leave of absence shall be disregarded for the purpose of computing his length of service with the employer under this section. (9) The Minister may, by notification in the Gazette, fix the periods when and prescribe the manner in which annual leave shall be granted to employees in different types of employment or in different classes of industries. (1) An employee shall after examination at the expense of the employer - (a) by a registered medical practitioner duly appointed by the employer; or (b) if no such registered medical practitioner is appointed or, if having regard to the nature or circumstances of the illness, the services of the registered medical practitioner so appointed are not obtainable within a reasonable time or distance, by any other registered medical practitioner or by a medical officer, be entitled to paid sick leave- (aa) where no hospitalisation is necessary - (i) of fourteen days in the aggregate in each calendar year if the employee has been employed for less than two years; (ii) of eighteen days in the aggregate in each calendar year if the employee has been employed for two years or more but less than five years; (iii) of twenty-two days in the aggregate in each calendar year if the employee has been employed for five years or more; or (bb) of sixty days in the aggregate in each calendar year if hospitalisation is necessary, as may be certified by such registered medical practitioner or medical officer: Provided that the total number of days of paid sick leave in a calendar year which an employee is entitled to under this section shall be sixty days in the aggregate: And provided further that if an employee is certified by such registered medical practitioner or medical officer to be ill enough to need to be hospitalised but is not hospitalised for any reason, the employee shall be deemed to be hospitalised for the purposes of this section. (2) An employee shall also be entitled to paid sick leave under paragraphs (aa) and (bb) of subsection (1) after examination by a dental surgeon as defined in the Dental Act 1971:
(3) An employee who absents himself on sick leave- (a) which is not certified by a registered medical practitioner or a medical officer or a dental surgeon as provided under subsections (1) and (2); or (b) which is certified by such registered medical practitioner or medical officer or dental surgeon but without informing or attempting to inform his employer of such sick leave within forty-eight hours of the commencement thereof, shall be deemed to absent himself from work without the permission of his employer and without reasonable excuse for the days on which he is so absent from work. (4) The employer shall pay the employee his ordinary rate of pay for every day of such sick leave, and an employee on a monthly rate of pay shall be deemed to have received his sick leave pay if he receives from his employer his monthly wages, without abatement in respect of the days on which he was on sick leave, for the month during which he was on such sick leave. (5) No employee shall be entitled to paid sick leave for the period during which the employee is entitled to maternity allowance under section 84 or for any period during which he is receiving any compensation for temporary disablement under the Workmen's Compensation Act 1952, or any periodical payments for temporary disablement under the Employees' Social Security Act 1969. 105F. Termination, layoff and retirement benefits. (1) The Minister may by rules made under this Ordinance provide for the entitlement of employees to, and for the payment by employers of - (a) termination benefits; (b) lay-off benefits; or (c) retirement benefits. (2) Without prejudice to the generality of subsection (1), rules made by virtue of subsection (1) may provide - (a) for the definition of the expressions "termination benefits", "lay-off benefits", or "retirement benefits", as the case may be, and for the circumstances in which the same shall be payable; (b) for the application thereof to employees who were in employment under a contract of service immediately before the commencement of such rules and who continue in such employment after such commencement; (c) for the application thereof to all employees generally or to any particular class, category or description of employees; (d) for the exclusion from the application thereof of any particular employee or employees or any class, category or description of employees; and (e) for the payment of different rates or amounts of termination benefits, lay-off benefits or retirement benefits, as the case may be, to different classes, categories or descriptions of employees. (1) - Repealed - (2) Nothing contained in this Chapter shall prevent any employer from agreeing with any employee that the wages of such employee shall be paid at an agreed rate in accordance with the task, that is, the specific amount of work to be performed, and not by the day or by the piece. 107. Working board. - Repealed - 108. Period for which wages payable. Unless the contract of service otherwise stipulates, and subject to the provisions of section 105, wages shall only be payable for days actually worked, for paid holidays, for days other than Sundays or other rest days on which through no fault of the employee no work is provided by the employer and for the time spent in attending before any court if such court certifies that his attendance was necessary for the ends of public justice. (1) A contract of service shall specify a wage period not exceeding one month. (2) If in the contract of service no wage period is specified, the wage period shall, for the purposes of the contract of service, be deemed to be one month. 108B. Wages not due for absence from work through imprisonment or attendance in court. Wages shall not become payable to or recoverable by any employee from his employer for or on account of the term of any sentence of imprisonment undergone by him or for any period spent by him in custody or for or on account of any period spent by him in going to or returning from prison or other place of custody or for or on account of any period spent by him in going to, attending before or returning from a court otherwise than as a witness on his employer's behalf. (1) The wages of an employee shall be paid not later than seven days after the expiration of the wage period in respect of which they are due. (2) All wages due to an employee whose contract of service is terminated by expiry of the period for which it was made shall be paid to him on the day on which such contract of service terminates: Provided that if the Director is satisfied that payment within such time is not reasonably practicable, he may, on the application of the employer, extend the time of payment by such number of days as he thinks fit. (3) All wages due to an employee whose contract of service is terminated by his employer shall be paid to him on the day on which such contract of service is terminated or, if this is not possible, on the first day, not being a rest day or gazetted holiday, after the day on which such contract of service is terminated. (4) All wages due to an employee who terminates his contract of ; service with his employer after he has given due notice to such employer under the provisions of section 12 shall be paid to him on the day on which such contract of service is terminated. (5) If an
employee terminates his contract of service without giving notice to his
employer as required under the provision of section 12 or, if the required
notice having been given, the employee terminates his contract of service
without waiting for the expiry of such notice, all wages due shah be paid
to him before the expiry of the seventh day after the day on which he Provided that the employer may, subject to any order made by a court or the Director to the contrary, deduct from the wages due to the employee such sum as the employee is liable to pay in lieu of notice according to the provisions of section 13 or the terms of his contract, if any. 110. Restriction on places at which wages may be paid. No employer shall pay wages to employees in taverns or other similar establishments or in places of amusement or in shops or stores for the retail sale of merchandise except in the case of employees employed in such establishments, places, shops or stores. 111. Wages to be paid in legal tender. (1) Except where otherwise expressly permitted by this Ordinance the entire amount of the wages earned by, or payable to, any employee in respect of any work done by him shall be actually paid to him in legal tender and every payment of, or on account of, any such wages made in any other forms shall be illegal, null and void. (2) Every employee shall be entitled to recover in the courts or before the Director acting under section 8A so much of his wages, exclusive of sums lawfully deducted under section 114, as shall not have been actually paid to him in legal tender or paid to him by any of the ways under section 111A. (3) Where payment of wages is made in cash it shall be made on working days only and at or near the workplace. 111A. Payment of wages through bank. (1) Nothing in section 111 shall operate so as to render unlawful or invalid any payment of wages by the employer to the employee with the employee's written consent in any of the following ways: (a) payment into an account at a bank or a finance company licensed under the Banking and Financial Institutions Act 1989 in any part of Sarawak being an account in the name of the employee or an account in the name of the employee jointly with one or more other person, not being his employer; (b) payment by cheque made payable to or to the order of the employee. (2) The consent of the employee under this section may be withdrawn by him at any time by notice in writing given to the employer; and such notice shall take effect at but not before the end of the period of four weeks beginning with the day on which the notice is given. (3) The consent of the employee to the mode of payment of wages under subsection (1) shall not be unreasonably withheld or, if granted, shall not be unreasonably withdrawn by the employee notwithstanding subsection(2). (4) Any dispute as to whether an employee has unreasonably withheld or withdrawn his consent to the mode of payment of his wages under subsection (1) shall be referred to the Director whose decision on the matter shall be final. 112. Agreement and contracts to pay wages otherwise than in legal tender illegal. - Repealed - 113. Conditions restricting place at which, manner in which, and person with whom wages paid to be spent, illegal. No employer shall impose any condition in any contract of service as to the place at which, or the manner in which or the person with whom, any wages paid to the employee are to be expended and any such condition in a contract of service shall be void and of no effect. (1) No deductions shall be made by an employer from the wages of an employee otherwise than in accordance with the provisions of this Ordinance. (2) It shall be lawful for an employer to make the following deductions; (a) deductions to the extent of any over payment of wages made during the immediately preceding three months from the month in which deductions are to be made, by the employer to the employee by the employer's mistake; (b) deductions for the indemnity due to the employer by the employee under subsection (1) of section 13; (c) deductions for the recovery of advances of wages made under section 103 provided no interest is charged on the advances; and (d) deductions authorised by any other written law. (3) The following deductions shall only be made at the request in writing of the employee: (a) deductions in respect of the payments to a registered trade union or co-operative thrift and loan society of any sum of money due to the trade union or society by the employee on account of entrance fees, subscriptions, installments and interest on loans or other dues; and
(4) The following deductions shall not be made except at the request in writing of the employee and with the prior permission in writing of the Director: (a) deductions in respect of payments into any superannuation scheme, provident fund, employer's welfare scheme or insurance scheme established for the benefit of the employee; (b) deductions in respect of repayments of advances of wages made to an employee under section 103 where interest is levied on the advances and deductions in respect of the payments of the interest so levied; (c) deductions in respect of payments to a third party on behalf of the employee; (d) deductions in respect of payments for the purchase by the employee of any goods of the employer's business offered for sale by the employer; and (e) deductions in respect of the rental for accommodation and the cost of services, food and meals provided by the employer to the employee at the employee's request or under the terms of the employee's contract of service. (5) The Director shall not permit any deduction for payment under paragraph (e) of subsection (4) unless he is satisfied that the provision of the accommodation, services, food or meals is for the benefit of the employee. (6) Where
an employee obtains foodstuffs, provisions or other goods on credit from
a shop the business of which is carried on by a co-operative society registered
under the Co-operative Societies Act 1993, it shall be lawful for his
employer, at the request in writing of the employee and with the agreement
of the manager of the co-operative shop to make deductions (7) Notwithstanding sub-sections (2), (3), (4) and (6) the Director, on an application by an employer or a specified class or classes of employers, may permit any deduction for a specified purpose from the wages of an employee or a specified class or classes of employees subject to such conditions as he may deem fit to impose. (8) The total of any amount deducted under this section from the wages of an employee in respect of any one month shall not exceed fifty per centum of the wages earned by that employee in that month. (9) The limitation in subsection (8) shall not apply to: (a) deductions from the indemnity payable by an employer to an employee under subsection (1) of section 13; (b) deductions from the final payment of the wages of an employee for any amount due to the employer and remaining unpaid by the employee on the termination of the employee's contract of service; and (c) deductions for the repayment of a housing loan which, subject to the prior permission in writing of the Director, may exceed the fifty per centum limit by an additional amount of not more than twenty-five per centum of the wages earned. 115. Interest on advances forbidden. No employer shall - (a) make any deduction; or (b) receive any payment, from any employee by way of discount, interest or any similar charge on account of any advance or advances of wages made to an employee in anticipation of the regular date for the payment of wages, where such advance or advances do not exceed in the aggregate one month's wages. 116. Deductions for fines, etc. Except where otherwise expressly permitted by the provisions of this Ordinance or any rule made hereunder, no employer shall make any deduction or make any contract of service with an employee for any deduction from wages to be paid by the employer to the employee or for any payment to the employer by the employee for or in respect of any fine, or of bad or negligent work or of injury to the materials or other property of the employer. 117. Remuneration other than wages. (1) Nothing in this Chapter shall render illegal a contract of service with an employee under which the employer agrees to provide the employee with house accommodation, food, fuel, light, water, medical attendance, or any approved amenity or approved service in addition to wages but no employer shall provide any employee with any intoxicating liquor as part of the terms of a contract of service. (2) The Director may, on application made to him in writing by an employer, approve in writing any amenity or service as an approved amenity or approved service, and in granting such approval the Director may make such modifications or impose such conditions as he may deem proper. (3) Any person who is dissatisfied with any decision of the Director under subsection (2) may, within thirty days of such decision being communicated to him, appeal in writing to the Minister. (4) On any appeal made to him under subsection (3), the Minister may make such decision or order as appears just, and such decision or order shall be final. 117A. Priority of wages over other debts. (1) Where
by order of a court made upon the application of any person holding a
mortgage, charge, lien or decree (in this section referred to as "the
secured creditor") or in the exercise of rights under a debenture
the property of any person (in this section referred to as "the person
liable") liable under any of the provisions of this Ordinance to
pay the wages due to any Provided that this section shall only apply to the sale of a place of employment on which - (a) any employee to whom wages are due as aforesaid; (b) any employee to whom wages are due by such sub- contractor for labour as aforesaid; (c) any sub-contractor for labour to whom money is owed on account of the sub-contract by the sub-contractor for labour as aforesaid, was employed or worked at the time when such wages were earned or such money accrued due, and to the proceeds of the sale of any products of such place of employment and of any movable property therein used in connection with such employment and to any money due to the person liable on account of work performed by such employee or sub-contractor for labour or derived from the sale of the products of such work: Provided further that - (a) where the person liable is an employer the total amount of the wages of any employee to which priority over the claim of a secured creditor is given by this section shall not exceed the amount due by the employer to the employee as wages for any four consecutive months' work; (b) where the person liable is a principal and where the wages are claimed from such principal under section 117C, the total amount of the wages of any employee to which priority over the claim of a secured creditor is given by this section shall not exceed the amount due by the principal to the contractor at the date of the sale, attachment or garnishment unless the contractor is also a sub-contractor for labour; (c) where the person liable is a contractor or subcontractor who owes money to a subcontractor for labour, the total amount due to such subcontractor for labour to which priority over the claim of a secured creditor is given by this section shall not exceed the amount due by such subcontractor for labour to his employees (including any further subcontractors for labour under such first-mentioned subcontractor for labour) for any four consecutive months' work. (2) In this section, except for the second proviso to subsection (1), "wages" includes termination and lay-off benefits, annual leave pay, sick leave pay, public holiday pay and maternity allowance. 117B. Reference by the Court to Director. (1) For the purposes of ascertaining the amount due to any employee or sub-contractor for labour under section 117A, the court or the receiver or manager may refer the question to the Director with a request that he hold an inquiry into the matter and forward his findings to the court or the receiver or manager, and the Director shall comply with any such request. (2) For the purpose of any inquiry under subsection (1), the Director shall have all the powers conferred upon him by paragraph (f) of section 8F and section 80 shall have effect as if the inquiry were being held under section 8A. 117C. Liability of principals and contractors for wages. (1) Where a principal in the course of or for the purposes of his trade or business, contracts with a contractor for the execution by or under the contractor of the whole or any part of any work undertaken by the principal, and any wages are due to any employee by the contractor or any subcontractor under the contractor for work done in the course of the performance of the contract, the principal and the contractor and any such subcontractor (not being the employer) shall be jointly and severally liable with the employer to pay such wages as if that employee had been immediately employed by the principal and by the contractor and any such subcontractor: Provided that- (a) in the case of a contract for constructional work, the principal shall not be liable for the payment of wages under this subsection unless he is also a constructional contractor or a housing developer; (b) the principal, and the contractor and any subcontractor (not being the employer), shall not be liable to any employee under this subsection for more than the wages due to him for any three consecutive months; and (c) the employee shall have instituted proceedings against the principal for the recovery of his wages or made a complaint to the Director under Chapter IIA within ninety days from the date on which such wages became due for payment by his employer in accordance with the provisions for the payment of wages contained in Part IV. (2) Any
person, other than the employer, who has paid wages under this section
to the employee of any employer may institute civil proceedings against
such employer for the recovery of the amount of wages so paid. 118. Employer's Shop -Repealed-
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