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TOPIC 6

TOPIC 6. PAYMENT SYSTEMS & WORKING HOURS (Compensation & Benefits). Video Clip. 1. Describe the types of workplace benefits that Google provides to their workers. 2. Why do you think Google provides these benefits?.

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TOPIC 6

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  1. TOPIC 6 PAYMENT SYSTEMS & WORKING HOURS (Compensation & Benefits)

  2. Video Clip 1. Describe the types of workplace benefits that Google provides to their workers. 2. Why do you think Google provides these benefits?

  3. Payment & working hours play a major role in attracting employees & retaining good performers.

  4. The goal of a wage system is to… • Attract employees to work in the organisation • Retain efficient employees • Motivate employees to perform effectively • Establish a simple system that is easy to administer.

  5. Wage systems

  6. Hall What Factors Determine Pay? Seniority Increase in the cost of living Performance Degree of skills

  7. The Employment Act 1955 • Lays down the requirements concerning the payment of wages.

  8. Working Hours • Maximum working hours are laid down in the Employment Act 1955, and the Sabah & Sarawak Ordinances; • No employee shall be required under his contract to work; • > 8 hours a day • > 48 hours a week • >10 hours a day, when a spread-over period is involved • > 5 hours without a 30-minute break.

  9. Rest days • All workers are entitled to atleast ONE rest day per week.

  10. Public holidays • Workers must be granted alteast 11 public holidays a year. • Of the 16 public holidays gazzetted by the government, 5 must be given to all workers. • National Day • Malaysia Day • Agong’sBday • Sultan’s / governors bday • Labour Day

  11. Public Holidays • Employer may choose which remaining 6 holidays to grant to his workers.

  12. Working Overtime • What is ‘overtime’? • The Employment Act states that no worker can be required by his employer to work more than 8 hours per day, or 48 hours per week. • If this happens  OT

  13. Reasons why employers conduct OT • A temporary shortage of workers • A temporary increase in workload • Low productivity of workers • Difficulty in recruiting additional workers.

  14. How to calculate OT rates? • OT on an ordinary working day = 1.5 times the normal hourly rate • OT on a rest day = 2 times the normal hourly rate • OT on a public holiday = 3 time the normal hourly rate.

  15. OT should be strictly controlled & only permitted when absolutely nessesary. • Excessive OT increases the cost of doing business.

  16. Problems of OT?

  17. Shift Work Systems • Involves ‘hours’ of work, which include hours outside the ‘normal’ working hours; ‘8-4’, or ‘9-5’. • 2 or more groups of workers who take turns to man the workstation.

  18. Alternative working hours • Flexitime • Job-sharing • Part time • Tele-working

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