IS COMMISSION PART OF “WAGES”? THE INDUSTRIAL COURT SAYS YES

Industrial Court Reminder: What Counts as “Wages” Really Matters

 

This digital podcast details a 1981 Industrial Court dispute between the Transport Workers Union and the Muar Motor Bus Company regarding the calculation of employee earnings. The court determined that wages under the law include basic pay, commissions, and allowances, which must all be factored into payments for public holidays, rest days, and sick leave. While the ruling established a specific formula for calculating these rates based on previous earnings, it rejected the union’s demand for tripled commissions on charter trips. Furthermore, the tribunal clarified that night allowances are only mandatory when staff are physically required to sleep away from home. Ultimately, the court ordered the employer to pay any outstanding arrears resulting from these clarified definitions.