Subject : Compensation management

There are FIVE (5) questions. Answer all questions in the Answer Booklet. Laila was offered a job as a clerk at Pertama Sdn Bhd. Below is the excerpt of Laila's contract of employment: CONTRACT OF EMPLOYMENT 1. Employment Address Pertama Sdn Bhd 4 - 5A Level 4, Menara Pertama Sabak Bernam Selangor 2. Position Clerk; Grade C3 3. Wages The Worker shall receive a basic wage of RM 1400.00 (excluding allowances and overtime). Wages shall be paid by the Employer monthly not later than seventh day of the following month. PayGradeC3SalaryRangeRM1400.00RM4000.00 4. Working Hours Working hours is from 8.30am5.30pm, from Monday to Saturday. 5. Overtime In the event the Worker, upon request by the Employer, agrees to work more than his normal working hours, the Worker shall be paid in accordance with the labour laws in Malaysia. 6. Rest Day The Worker shall be entitled to one (1) rest day in each week. In the event the Worker, upon the request by the employer, agrees to work on such rest day, the worker shall be paid in accordance with the labour laws in Malaysia. 7. Public Holiday The Worker shall be entitled to a total of nine (9) public holidays in a year. In the event the Worker, upon the request by the employer, agrees to work on such public holiday, the worker shall be paid in accordance with the labour laws in Malaysia. 8. Annual Leave The Worker shall be entitled to annual leave as follows: 9. Deductions The Employer is entitled to make deduction for not more than 50% in a month from the Worker's wages in the event of any monetary advance in accordance with the labour laws in Malaysia. Compulsory deduction is as follows: 10. Sick Leave The Worker shall be entitled to a paid sick leave in accordance with the labour laws in Matavsia 11. Matemity leave Every female employee shall be entitled to 98 days unpaid maternity leave. 12. Others Others benefits and condition which is not specified are in accordance with the labour laws in Malaysia. 1. Based on the above information, Identify FIVE (5) items in the contract which do not comply with the Malaysian labour law and explain the correct one. (15 Marks) 2. If Laila works on a public holiday during her normal working hours, calculate her overtime payment for that day. (2 Marks) 3. Calculate Laila's overtime payment if she is required to work from 8.30am11.30 am on Sunday. (2 Marks) 4. State the meaning of discretionary benefits and explain why company offers such benefits to their employees. (5 Marks) 5. a. Explain pay grades (1 Mark) b. Discuss how pay grades can limit Pertama Sdn Bhd's ability to achieve competitive advantage. Support your answer with TWO (2) statements. (5 Marks) [TOTAL: 30 MARKS]