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Termination Benefits Calculation/ Constructive Dismissal

noor khatijah
Wed, 15 Feb 2012 10:55:38 AM  (Last updated: Thu, 23 Feb 2012 05:21:47 PM)

Dear Admin,

I have a problem to determine how to calculate the termination benefits of our staff, actually last week i attend the notice of mention in the court and the Yang Arif said that we have to pay the termination benefits to staff amounting RM38,400, so i try to calculate back but unable to get of the said amount. the chronology of the case are as follows :-

1. Date of Joining 16/02/2009, Basic salary RM5,500

2. Termination probationary appointment the company unable to confirm the employee, 30/07/2009

3. The employee lodge a report to IRD and claim she was wrongfully dismissed without just cause or excuse on 30/07/2009.

4. The employer received notification from Jabatan Perhubungna Perusahaan Selangor for "Representasi di bawah Seksyen 20, Akta Perhubungan Perusahaan 1967:.

5. The company considered her grievances and reinstate the employee on her formal position as Sr. Admin Executive on 15/08/2009.

6. The employee send a letter for constructively dismissed with immediate effect and she do not wish to be further victimised on 9/11/2009.

7. The employer reply her letter and has mention " ACCEPTANCE OF RESIGNATION" with effect 09/12/2009.

8. The employee response to acceptance of resignation and to inform the employee that she did not voluntarily, instead submitted a constructive dismissal on 09/11/2009 due to continuous victimization and have filled in a representation at IRD on 17/11/2009.

9. Again the company received letter from Jabatan Perhubungan Perusahaan, to inform the company to bring the case at Mahkamah Perusahaan di bawah subseksyen 20(3) for the result.

10. During the mention if the company not reinstate her the other way the company have to pay the termination benefits to the employee. During the mention the yang arif has mention that the termination benefits for 7 months and the termination benefits is amounting RM38,400.


Madam, how is the calculation? is that in the regulations if the employee constructive dismissal herself she able to claim termination benefits.


Does the company guilty reply her letter as a Acceptance Resignation?


Should her giving a notice to the company as she declared constructive dismissal by herself ?


Appreciate of your advice regarding of the said matter because i have next mention for the said case.


Thank you.


KL Siew
Wed, 15 Feb 2012 04:34:30 PM

I see, the case has not been finalised yet. In that case, if you are not familiar with the proceeding, I think it is advisable for you to consult a lawyer who is familiar with Industrial Court cases.

hon ai shy
Thu, 23 Feb 2012 09:51:16 AM

Dear Admin,

My company is intended to implement retrenchment of employees due to the factors of down sizing and new management take-over.

I have received the verbal inform by the new management that they will terminate my servicer with 1 month compensation

I have a problem to determine how to calculate the termination benefits in order to negotiate with the new management.

Please find below information:

Position : Marketing strategy Manager

Year of service : 2009 January 2009 to ill

Salary : basic income RM8500 + RM1200 car allowance

Refer to the confirmation letter, termination clause stated as below:

During your employment period, termination of service by either party shall be 12 weeks in lieu of notice.  All staff benefit shall cease after the last day of service.  Any money due and owing under any staff load scheme payable by you to the company must be settled before the last day of service.  The company reserves the right to offset any outstanding sums from the balance of money payable by the company to you.

As i know, i will not covered under employment act 1955, please assist to share on:

1.  what are the rights that i can declare and request for in the retrenchment issue?

2. What is the compensation package that the employer should pay back to me with my current position & salary.

3. What is the bargaining stand that i can fight with the employer.

Sincerely appreciate your soonest reply on the above said matter.

Thank you.


KL Siew
Thu, 23 Feb 2012 05:21:47 PM

First, wait for the termination letter to come. With the termination letter, you may approach the local Industrial Relations Department to seek redress. If you are not satisfied with the termination, you may make a claim for reinstatement under Section 20 of the IR Act. Discuss the issue with the IR officers for details.

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