FINED, CLEANING STREETS, STILL ON PAYROLL? THE HIDDEN HR TRAP EMPLOYERS MUST KNOW

This digital podcast explores the legal and financial consequences for employers when a worker is sentenced to community service, using a specific case of a littering fine as a starting point. While Malaysian law allows courts to mandate up to twelve hours of public restitution, these orders create a unique challenge regarding wage payments during work absences. The author clarifies that because community service is not legally equivalent to imprisonment or court attendance, employers cannot rely on Section 23 of the Employment Act to withhold pay. Instead, the source suggests that any time spent fulfilling these orders should be categorized as unpaid leave. By applying the standard formula for an incomplete month’s work, businesses can accurately calculate salary deductions for the specific hours or days an employee is away. Ultimately, the overview provides a practical framework for managing staff who must balance their professional duties with court-ordered civic penalties.