1 Unit 5 Payment Systems and Working Hours

2 Introduction  Payment and working hours play a major role in attracting employees and retaining good performers.  To attract workers and to retain the best performers, employers need to have a compensation system that will achieve these objectives.  If wages increase, employers increase the cost of their product or services to offset the higher wages paid to their employees.

3 Wages and payment system The remuneration package  Basic wages  Benefits  Incentives

4 Wages System  Time related systems – workers may be paid by the day, the week, the month or even on annual basis. / combine with incentive and reward system  Piece rated system- a piece work system workers are paid according to the number of units produced in a given time.

5 The goals of a wage system  Attract employees to work in the organization  Retain efficient employees  Motivate employee to perform effectively  Establish a simple system that us easy to administer.

6 Globalization  Changing to new machine, new technology or new procedures is likely to be resisted by piece workers who may fear loss of income while they adjust to the new way of working.

7 The Law relevant to wages are  The Employment Act 1955  The Sabah Labour Ordinance  The Sarawak Labour Ordinance  The Wages Councils Act 1947

8 Factors affecting individual levels of pay  Seniority  Increase in the cost of living  Performance  Degree of skill

9 Legislation relating to working hours  According to Employment Act, Sabah and Sarawak Labour Ordinance No employee shall be required under his contract to work  More than 8 hours per day  More than 48 hours per week  More than 10 hours per day when a spread over period is involved  More than 5 consecutive hours without 30 minutes break

10 Continue..  One rest day per week  At least 10 public holiday in one year  Gazette holidays must be given are National Day, Agong’s Birthday, State Sultan’s or Governor Birthday

11 Choosing A working Hours System Overtime means working longer hours than normal by the cases like,  Accident, actual or threatened  Work essential fro the defense or security of Malaysia  Urgent work to be done to machinery or plant  An interruption of work

12 Overtime Rates  Ordinary days =1 ½ times the normal hourly rate  Overtime worked on a rest day = 2 times the normal hourly rate  Overtime worked on public holiday = 3 times the normal hourly rate

13 Reasons of overtime  A temporary shortage of manpower  A temporary increase in workload  Low productivity of workers  Difficulty in recruiting additional workers. Problems of Overtime  Increased cost  Effect on morale  Effect on productivity

14 Solution to reduce overtime work  Keep records  Recruiting new staff  Improving supervision and training  Investment in new technology  Changing the mode of payment

15 Shift Working System  Hours of work which include hours outside the normal of traditional 8 to 4 or 9 to 5 pattern.  Two or more groups of workers who take turn to man the workstation

16 Types of Shift  Double Day Shift  Three Shift Work  The Split Shift  Rotating And Permanent Shift

17 Problems caused by shift work  Women and night work  Increase in cost  Workers health and shift work  Stress and psychological problems

18 Tutorial Alternative working hours scheduling  Flexi time  Job sharing  Part time Career  Tele working  Home working