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Resignation & Payment in lieu

Sat, 08 Sep 2012 02:02:58 AM  (Last updated: Sat, 08 Sep 2012 09:32:39 PM)


I have tender my resignation and i have a few question to ask.

1. According to my letter of appoinment, as a confirmed staff the termination notice period is 3 mths or 3 mths salary in lieu of such notice so i will serve 1 mth notice and pay for 2mths of short notice however the HR dept stated that since its a short notice i still need to pay for 3 mths salary in lieu even thought i serve 1mth notice, is this correct according to Malaysia Labor Law?

2. My current basic salary is RM3940 and i eligible for a monthly housing allowance of RM450, so what are the correct amount that i need to pay the company as a salary in lieu, RM3940 x2mths OR RM3940+RM450 x 2mths?

3. I tender a letter of resignation on 29th Aug 2012 and i inform the company that 28th Sept (Friday) would be my last day as i am going to pay for the 2 mths salary in lieu for the short notice before i leave the company but my HR says that it depends whether the company is willing to release me or not on that day even though i paid the company, is the company have a right to do so?

Really hope you reply soon


KL Siew
Sat, 08 Sep 2012 09:32:39 PM

1。Actually, 3 months notice should be served first and then working for one month then you leave by paying 2 months indemnity in lieu for leaving two months earlier. However, I don't see why the company should make things difficult for you for what you did. Consult the Labour Office for an official opinion.

2. I think housing allowance should be included.

3. Same as 1.

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