Section 40
Substitution of section 110
of Labour Ordinance of Sabah (Amendment) Act 2025
The Ordinance is amended by substituting for section 110
the following section:
“Wages to be paid through financial institution.
Quoted provision
Section 110
The entire amount of wages earned by, or payable to, any employee in respect of any work done by him less any lawful deductions, shall be actually paid to him through payment into an account opened by a financial institution, being an account in the name of the employee or an account in the name of the employee jointly with one or more other persons as stipulated by the employee.
(2)
Every employee shall be entitled to recover in the courts so much of his wages, exclusive of sums lawfully deducted under section 113, as shall not have been actually paid to him in accordance with subsection (1).
(3)
For the purposes of this Chapter,
“financial institution” includes—
(a)
a licensed bank and an approved issuer of a designated payment instrument under the Financial
Services Act 2013 [Act 758];
(b)
a licensed Islamic bank and an approved issuer of a designated
Islamic payment instrument under the Islamic Financial Services Act 2013 [Act 759]; and
(c)
a prescribed institution under t h e D e v e l o p m e n t F i n a n c i a l
Institutions Act 2002 [Act 618].
(4)
The Minister may, by order published in the Gazette, specify any approved issuer of a designated payment instrument or any approved issuer of a designated Islamic payment instrument under paragraphs (a) and (b)
of subsection (3) to be a recognized approved issuer of a designated payment instrument or approved issuer of a designated Islamic payment instrument for the purpose of payment of wages under this Ordinance.”.