Section 103
Limitation on advances to employees
of Labour Ordinance [Sarawak Cap. 76]
No employer shall during any one month make to an employee an advance or advances of wages not already earned by such
66
employee which exceeds in the aggregate the amount of wages which the employee earned in the preceding month from his employment with such employer, or if he has not been so long in the employment of such employer, the amount which he is likely to earn in such employment during one month, unless such advance is made to the employee—
(a)
to enable him to purchase a house or to build or improve a house;
(b)
to enable him to purchase land;
(c)
to enable him to purchase livestock;
(d)
to enable him to purchase a motorcar, a motorcycle or a bicycle;
(e)
to enable him to purchase shares of the employer’s business offered for sale by the employer;
(f)
for any other purpose—
(i)
in respect of which an application in writing is made by the employer to the Director;
(ii)
which is, in the opinion of the Director, beneficial to the employee; and
(iii)
which is approved in writing by the Director, provided that in granting such approval, the Director may make such modifications or impose such conditions as he may deem proper;
(g)
for such other purpose as the Minister may, from time to time, by notification in the Gazette, specify either generally in respect of all employees, or only in respect of any particular employee, or any class, category or description of employees.
Labour 67
(2)
No worker shall be held to be liable for the amount of any advance made to him by his employer which exceeds the amount authorized under subsection (1).
(3)
No non-resident employee shall be held to be liable for the amount of any moneys expended on his behalf prior to his arrival in
Sarawak in consideration of his engagement to work within Sarawak other than an advance of wages as may be approved by the Director.
(4)
Any advance of wages may be recovered in instalments by deduction from wages in such manner as may be approved by the
Director.