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Contracts that do not provide any protection or benefits
Mon, Nov 10, 2008
The New Straits Times

THE contracts handed out to drivers are "interesting", to put it mildly.

Loaded with caveats, disclaimers, jargon and extremely fine print, in some cases, one could be forgiven for wondering if they are deliberately meant to befuddle.

In one of the contracts, the very first thing stated is that the driver is not protected by the Employment Act 1955.

For good measure, it also states that the cost of preparing the contract is the driver's burden to bear.

Best of all, however, is the stipulation that the driver has to pay a deposit of RM1,000 to the company upon signing the contract.

Labour lawyer V.K. Raj couldn't help but shake his head in amazement as he pored over the document.

"I find it very odd that the company is actually taking a deposit from the drivers. Can you imagine how much they would be taking if they had 20 or 100 workers?

"Usually, it's the other way round. The contractor -- which is what the company says the driver is -- is the one that usually takes a deposit for work to be rendered."

The reason for the deposit being levied? Apparently, because the company has suffered tremendous losses due to drivers breaking traffic rules and using the company's vehicles for their own purposes.

Oddly, the most important thing for the employee -- the size of his paycheque -- is not stated.

Instead, all that is said is that wages will be paid on a piecemeal basis, the quantum of which will be decided by the company and can be revised based on the company's needs.

In another instance, an eight-page contract goes to great lengths to tell the driver that he would not be covered under social security insurance (Socso) or workman's compensation.

It gives him an 8.8 per cent commission on the haulage tariff, but quickly adds that this is in no way to be construed as forming an employer/employee relationship.

It also expressly states that the company shall not make any of the statutory payments usually required of employers.

And, while noting that a contract driver is not subject to working hours like a normal employee, it nevertheless demands that the driver fulfil his work schedule according to an "allowed timeframe".

He also has to check in with the depot every day to receive his delivery schedule.

The driver is also warned that if he does not show up for three days continuously, or any shorter period if the company deems it so, his contract will immediately be terminated.

This includes weekends and public holidays, which means those long Hari Raya Aidilfitri or Deepavali weekends are a privilege these men do not enjoy.

 

 
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