Human Resources Minister, Datuk Seri M Saravanan has clarified that the national wage policy does not permit pay cuts or deductions in allowances for employees who work from home (WFH).

“No party can work from home without the consent of the employer. If an employer allows it, then they should not want to cut their salaries later. If the employer does not agree with the employee working from home, they can ask the employee to come to office. Not give permission, (and then) we cut the salary,” said the minister, adding that such cuts cannot be allowed.

Datuk Seri Saravanan was weighing in on an earlier comment made by the executive director of the Malaysian Employers Federation (MEF), Shamsuddin Bardan, who proposed that employees who work from home should take a pay cut or deduction in travel allowance. It was suggested that this pay cut may range between 10% to 12% if enforced, as some companies offer allowances for employees to commute to work.

Additionally, Shamsuddin claimed that some employees agreed with this rationale as working from home will save travel costs. He admitted, however, that there are parties that will also argue that those who work from home are performing as usual too, and as such, should not suffer a pay cut.

Aside from Datuk Seri Saravanan, the National Union of Bank Employees (NUBE) and the Malaysian Trades Union Congress (MTUC), too, objected to Shamsuddin’s comments. Both parties said that most companies did not suffer reduced productivity or profit as a result of the work-from-home practice. In fact, employees who work from home have helped companies to save on operational costs, including utilities, and office space rental.

(Sources: Malay Mail, Free Malaysia Today)

• TAGS:
• Datuk Seri M Saravanan
• Malaysian Employers Federation (MEF)
• Malaysian Trades Union Congress
• MEF
• MTUC
• National Union Of Bank Employees
• NUBE
• Shamsuddin Bardan
• Work From Home
• Work From Home Arrangements