THE payment of wages in cash is prohibited unless approved by both the employee and the Department of Labour Peninsular Malaysia director-general, to avoid manipulation.

Human Resources Minister V. Sivakumar said employers who do not pay wages through a bank account are committing an offence punishable by a fine of up to RM50,000 under sections 25 and 25(A) of the Labour Act 1955.

At a joint operation held at Pasar Borong Kuala Lumpur today, Sivakumar said 34 employers were inspected and 19 of them paid wages in cash. Other offences included violations of working hours and non-compliance with the Minimum Wages Ordinance.

“The operation aims to address complaints regarding unpaid wages, lack of contributions to the Social Security Organisation and Employees Provident Fund, and employers not paying salaries via bank accounts,” he told reporters after participating in the operation in the wholesale market.

Sivakumar also said from January to October,  investigations were conducted on 1,654 cases relating to payment of salaries, accommodation of workers and minimum wage orders, resulting in total fines of more than RM4.3 million.

He said of the investigation papers opened, 357 cases were fined a total of RM391,236 while 775 cases were compounded RM3.96 million.

The investigation papers were opened under the Labour Act, Workers’ Minimum Standards of Housing and Amenities Act 1990 and Minimum Wages Order 2022.

Sivakumar said the ministry is determined to ensure that there is no element of forced labour in the country and that integrated operations will continue.

“I have stressed several times that if there are complaints from employees or the embassies, we will take stern action against any employer who does not comply with the laws in line with the International Labour Organization Convention,” he said. – Bernama, November 15, 2023.