EMPLOYMENT LAW
Tutorial 5
Kong Thian Cheong versus Southern Metal Industries Sdn Bhd [2017]
In this case, the employee, Kong Thian Cheong, had been working for the company,
Southern Metal Industries Sdn Bhd, for over 14 years as a general worker. The
company had deducted a sum of money from his wages without his consent or prior
notice, claiming that it was for medical benefits provided to him.
Kong Thian Cheong took legal action against the company, claiming that the deduction
was unlawful and that he was entitled to his full wages. The company argued that the
deduction was legal as it was for the medical benefits provided to the employee.
QUESTION 1
Based on the case above, does the company action considered as unlawful? Please
explain your answer.
(5 Marks)
Yes. Because the company deduct his wages without his consent nor his notice. It
also considered a discrimination towards him although he is loyal to the company for
14 years. It also appears that the company lack of proof of the medical benefits given
to him. The fact that they refuse to admit it was illegal and absurd adds more to why it
is unlawful for the company.
QUESTION 2
Can employer deduct employee’s wages without employee’s consent and What are
the permitted reasons for deduction of wages without the request or consent from an
employee or permission from Director General?
(5 Marks)
Yes, for special reasons. First is deductions required by law, for example EPF,
SOCSO, Income Tax and Court Orders. Second is deductions of any overpayment by
mistake by the employer during the preceding three months. Third is deductions for
any indemnity due (termination without notice or insufficient notice served). Lastly is
deductions for advances when no interest is charged.