I need help to prepare a supplementary letter changing a clause in the primary offer for employment letter that was issued to an expat.
The expat now wants to be paid directly in AUD but the tax laws in Malaysia requires the employer to pay tax on the earning. As such, I need to conver the AUD equivalent to MYR- deduct the tax and later convert the balance to AUD. For the first purpose I will have to convert based on on the monthly average exchange rate of the preceding month for AUD as quoted by Bloomberg. For the second purpose where I have to convert the remaining MYR back to AUD, I would have to apply the prevailing rate of the day I wish to buy the bank draft.
Due to this I would have to stress that the fluctuations in the exchange rate is to be borne by the employee as he had signed off his agreement to his primary contract as follows:
"The salary for the duration of the two years will be AUD5,000.00 per month. Your salary will be converted to Malaysian Ringgit based on the monthly average exchange rate of the preceding month for AUD as quoted by Bloomberg."
Appreciate any help or advice I can get.
Thanks
From Malaysia, Kuala Lumpur
The expat now wants to be paid directly in AUD but the tax laws in Malaysia requires the employer to pay tax on the earning. As such, I need to conver the AUD equivalent to MYR- deduct the tax and later convert the balance to AUD. For the first purpose I will have to convert based on on the monthly average exchange rate of the preceding month for AUD as quoted by Bloomberg. For the second purpose where I have to convert the remaining MYR back to AUD, I would have to apply the prevailing rate of the day I wish to buy the bank draft.
Due to this I would have to stress that the fluctuations in the exchange rate is to be borne by the employee as he had signed off his agreement to his primary contract as follows:
"The salary for the duration of the two years will be AUD5,000.00 per month. Your salary will be converted to Malaysian Ringgit based on the monthly average exchange rate of the preceding month for AUD as quoted by Bloomberg."
Appreciate any help or advice I can get.
Thanks
From Malaysia, Kuala Lumpur
Hello Shoba Mahendra,
The clause you mentioned DOESN'T explicitly state that he would have to bear the exchange rate variations--it only talks about the salary being converted to MYR & then to AUD. In all likelihood, the way it is, there could be serious differences late on--unless there's another clause which is very clear about this aspect.
Reg the mode of payment, not sure if Bank Draft is convenient in the long-run--Bank-to-Bank transfers are more common now-a-days.
Rgds,
TS
From India, Hyderabad
1641The clause you mentioned DOESN'T explicitly state that he would have to bear the exchange rate variations--it only talks about the salary being converted to MYR & then to AUD. In all likelihood, the way it is, there could be serious differences late on--unless there's another clause which is very clear about this aspect.
Reg the mode of payment, not sure if Bank Draft is convenient in the long-run--Bank-to-Bank transfers are more common now-a-days.
Rgds,
TS
From India, Hyderabad
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Pf name & dob change letter format.doc