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Amendment of Letter of Offer

NORA LYNN BINTI ABDULLAH
Member
Thu, 27 Oct 2011 05:22:07 PM  (Last updated: Fri, 28 Oct 2011 08:53:34 PM)

can my company amend /change staff benefit that stated in their LOA?  This bunch of staff are earning more than RM1,500 a month.  Their packages slightly different from other staff where they enjoyed benefits like EPF contribution by employer is 20%, Group PA & medical benefit extended to spouse & kids, retirement age extended to 60 years old, etc.

This deal was done by previous CEO.  However after he left, the new CEO wants to reduce their benefit & make it same with other, as he felt it was unfair for all other staff who did not enjoyed the same benefit.  Pls let me know if its permitted.

KL Siew
Administrator
Thu, 27 Oct 2011 05:47:32 PM

If the staff has not yet started work, there may not be problems. Otherwise, you will have to discuss the matter with the staff concerned.

NORA LYNN BINTI ABDULLAH
Member
Thu, 27 Oct 2011 06:03:56 PM

hi Siew, tq for your prompt reply.

this staff are existing staff.  we took them over frm one company with the work order & hv an agreement for 3 yrs.  There was a clause stated that this LOA valid while the work order is valid - 3 yrs.  Seems the work order going to be expired on 31st Dec, we thought this is the best time to amend the whole package & make it the same with others staff.  of course if we discuss with them, they probably not agreeable to it as we reduced some of the benefit.  I wanted to know if its permit by law so that they cant refuse.

KL Siew
Administrator
Fri, 28 Oct 2011 08:53:34 PM

There is no law saying the employer cannot do that but the affected employees have the right to complain the Labour Department or the Industrial Relations Department or even sue in court for breach of contract.

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