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Rediff.com  » Business » Malaysian co to compensate Indian workers

Malaysian co to compensate Indian workers

Source: PTI
October 01, 2005 14:15 IST
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A Malaysian court has asked a local company to give 48 Indian nationals a total of 500,000 ringett (approx Rs 58,35000) in damages for not paying them the promised salary when they joined it.

Judge Augustine Paul of a Court of Appeals ruled that the Penang-based company 'Chin Well Fastners Sdn Bhd' should pay damages totalling 500,000 ringett to the 48 workers because the firm had conceded that it promised them a wage of 750 ringett (approx Rs 8752) per month and other benefits but later in a fresh contract they were given only 350 ringett (approx Rs 4084) per month, the New Straits Times reported.

A lawsuit was filed by Sampath Kumar Vellingiri and 47 other Indian nationals after the company introduced a fresh contract stating the salary as 350 ringett.

The paper said the workers were promised 750 ringett per month and other benefits by Chin Well's recruiting agent Mithun Travels Pte Ltd in India.

Hundreds of Indian nationals, seeking work in Malaysia, are duped by agents who promise them high salary and benefits, which do not materialise when they arrive in Kuala Lumpur.

After a four-day trial, the company was ordered to pay the workers the promised sum for a three-year period from September 2002. The workers will also be entitled to the benefits in the original contract signed by Chin Well although they were not signatories to the agreement.

The contract to recruit the Indian workers was signed for Chin Well by its local agent in Kuala Lumpur.

The workers did not sign the agreement because it is mandatory requirement of the Indian authorities that before its nationals are allowed to work in Malaysia the prospective employer would have to execute a document in the form of a contract, the paper said.

The judge said, "It is therefore manifestly patent that the dominant force in the contract of employment is the relevant Indian authority and not the employees."
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