CONFIDENTIAL **
21
Protection of wages
6.67.
All the territories including Hong Kong have legislation on protection of wages. As regards the time of payment,. a limit of seven days after the due date is imposed generally in Hong Kong, Malaysia, Singapore and Thailand. Wages must be paid once or more a month on a given date in Korea, and at intervals not exceeding 16 days in the Philippines. With a limit of three days, Indonesian legislation is the strictest.
6.7
Most territories including Hong Kong do not stipulate any penalty for late payment. But in Thailand interest is payable at 15% per annum, payable every seven days. Even higher interest is payable in Indonesia: 5% per day for the fourth to eighth day after the due date and 1% per day thereafter, subject
to a maximum of half the full amount due.
6.8
On form and place of payment, as a general rule, wages should be paid in legal tender at or near the place of employment. Variations are allowed in some cases, however, subject to agreement between the employer and employee.
6.9
Thailand is the only country with legislation prohibiting deductions from wages (other than for absence from work). A maximum deduction for various purposes of 50% of wages is provided for in Hong Kong, Malaysia and Singapore, and 25% in Indonesia. Deductions are also allowed in Korea (to the extent
permitted by other legislation or by collective agreement) and in the Philippines (for a few items only).
6.10
Priority of wage payments over other debts
in case of bankruptcy of the employer is guaranteed in full by law in Korea and the Philippines
Partial guarantee is provided for in Hong Kong up
to a maximum of $18,000 in respect of wages (4 months pay
CONFIDENTIAL
/or
機密
Page 30Page 31
No comments yet.
Private notes are available after approval.