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Part 2 : Issues for Management

1) Duration and Effective Date


The hotel submitted the effective date of the collective
agreement should be from the date of the Award to ensure that
there be a running period of three years and there is no basis for

the collective agreement to have a retrospective effect .


The union submits that the effective date of the collective
agreement commenced from 1 October 2011 as the Ministerial
Reference was dated 16 February 2012 and when backdated to

six months will be 16 August 2011 .


The Hotel does not want the backdated to occur .
2) Salary structure
The hotel has proposed the implementation of a clean wage

system .
Clean wage is the new concept in compensation and benefit for
employees there all allowances are amalgamated under one

head and that may be basic salary .


For the example for Ahmad Faisal Ismail who is the Hotels
Housekeeping Clerk , he will receive a basic salary of RM 515.00

and a service point of 2.5 .


The hotel stated that the hotel industry in Malaysia has for
decades practiced a dual remuneration system which consisting

basic pay or wages and service charge.


The hotel added that there will be the time that they will not
afford to pay high salary due to the fluctuating business and
occupancy rates,as there would be periods of low occupancy and

a high salary would be financially disastrous to the hotel.


Due to these challenges, the concept of service charge was
introduced. With the service charge, the basic wages be kept low
but the workers would be cushioned by the income they obtained

from the service charge.


The hotel submits that in the event that the staff are allowed to
have their basic salaries increased to RM900.00 a month and the

staff are allowed retain their service charge points this would be
in contravention of the maxim equity leans against double
portions, consistent with the established principle of unjust

enrichment .
Equity leans against double portion is the situation where an
employee would be receiving double benefit that is the increased
salary following the Minimum Wages Order 2012 and the

retention of the service charge points.


Its mean the employee will receive double benefit which is the
increase in salary which follow the Minimum Wage Order 2012

and also the service charge points .


3) Service charge
The Hotels counsel submits that contrary to the law that there
must be a minimum basic wage , the payment of service charge

is not required under any law .


It is merely a practice and not a policy mandated by any
legislation.
Its mean the service charge is not mandatory .
The Hotel submits that the practice of service charge should be
maintained and the court has the power to order such
restructuring to enable the service charge to be utilized to
increase the basic salary of RM 900 .

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