Kuching salesman wins lawsuit against employer for failing to comply with Minimum Wage Order

KUCHING (Nov 23): A salesman here won a lawsuit against a car manufacturer for failing to comply with the Minimum Wage Order 2012.

Sarawak Democratic Action Party (DAP) chairman Chong Chieng Jen said the employee, who only wished to be identified as Choo, was recruited in August 2005 with a monthly basic salary of RM300 and a commission rate determined by the employer from time to time.

After the Minimum Wage Order 2012 came into force on Jan 1, 2013, the employer fixed the minimum wage rate for Choo at RM900 per month.

“However, the company deducted Choo’s commission by RM300 per car for the first two cars he sold from January 2013 to May 2018.

“By deducting RM600 commission per month, while giving Choo a basic salary of RM900, is effectively circumventing the Minimum Wage Order 2012 and maintaining Choo’s basic salary of RM300 per month as before the implementation of the Minimum Wage Order 2012,” he said in a statement today.

Chong said the employee filed a claim against the company in October 2018 through his assistant lawyer Hii Yiik Yew.

According to him, the Labour Court held the company’s deduction of the RM600 commission per month was wrongful and thus awarded a sum of RM37,200 for Choo.

He said the company then appealed against the decision in the High Court, which upheld and confirmed the Labour Court’s decision in December 2020.

Dissatisfied with the High Court’s decision, he said the company then appealed again in the Court of Appeal.

In August this year, Chong said the Court of Appeal reaffirmed the decision of the High Court.

“With the decision of the Court of Appeal, the company has thus exhausted all its rights of appeal against the decision of Labour Court and on Nov 1, 2024, the company made the payment to Choo.

“Choo’s perseverance and patience to defend his rights as an employee finally paid off, albeit after a gruelling six-year legal battle and the anguish and anxiety associated with the legal battle. This is a typical case of a big company taking advantage and bullying an employee,” he said.

He believed that a common defenceless employee would not be able to last the whole battle to the end and see the final victory, but Choo had his support and Hii’s legal assistance.

He pointed out the Minimum Wage Order, implemented after many rounds of consultations between the government and the stakeholders including the employers’ associations, was to provide a wage level which accords the employees a decent living standard.

Given this, Chong said employers must uphold the spirit of the Order and not try to circumvent it by some creative schemes of wage, commission or other terms of compensation to employees.

He said the decision of the Court of Appeal is seen as a victory of the rights of employees against an unreasonable act of an employer.

He believed that many employees of the same company in Sarawak had been similarly treated and deprived of their rightful commission during the period between January 2013 to May 2018.

He said these employees did not file any claim against their company for fear of possible retaliation or victimisation by the company.

In light of Choo’s victory in his legal claim, Chong called upon the company to accord its employees with their rightful entitlement and reinstate the commission deducted from their wages during the period of time even if those employees did not file similar action.

“The courts have decided on the rights of the employees. Being a big company carrying the national pride in producing a national car, the company should respect the decision of the court on employees’ rights without the employees having to go through any legal process,” he said.

He thanked Hii’s tireless effort and patience in handling the case, helping Choo right from the Labour Court to the High Court and finally in the Court of Appeal.

“Without his (Hii’s) meticulous research and articulation in Court, there might have been a different outcome in the matter,” added Chong.