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Transfer and Termination by Employer

Wed, 26 Mar 2008 01:47:42 PM  (Last updated: Wed, 02 Apr 2008 07:41:25 AM)

Hi, I'm been transferred from company A to company B in Jul 07 while the rest of my collegues are being laid off. I was not given an option for retrenchment or VSS. Company A has ceased operation then. Company A and Company B are affiliated, owned by the same parent company (Singapore based). In my new appointment letter, it is indicated my length of service (>5 years as of Apr 08) and benefits is carried forward from company A, status quo.

As the business in company B is bad, my current superior mentioned that he will propose to the management to 'let me go' by paying me 'a little bit' of compensation (which is not according to laid off compensation) because I performed 'under expectation'. I used to be a star-performer in Company A and I have a testimonial from my superior in Company A to prove it. But in Company B, its a totally new industry that I do not have experience at all. I have made known to the management on many occassions on my struggling in the Company B. BTW, Company B is going to continue operate.


1. Can Company B fire me based on reason of 'Performing Under Expectation'?

2. If the answer to Q1 is no, in what other situation can the Company B fire me (besides misconduct, misdeamor and neglience)? And what should be my rightful compensation?

3. If the answer to Q1 is yes, what is the compensation that I am entitled to?

4. If the industry the Company B is in is generally facing very small growth and gross margin is decreasing, can Company B classified my performance as 'under expectation' while the target set for me is beyond the general industry standard?

5. Can I take legal action against the company for giving lame excuse to fire me because I am pregnant and due to enjoy maternity benefits?

6. Would appreciate if anyone could give me some advice on my next course of action.

Thank you.

KL Siew
Wed, 26 Mar 2008 05:49:35 PM

The management has not taken any action yet and if ever they take any action that you think that is unfair, you can always seek redress at the Industrial Relations Department.

Meanwhile, please read the discussion in this forum with 'Unfortunate Blogger" dated 14 Feb 2008 for more information pertaining to compensation.

Thu, 27 Mar 2008 06:22:54 PM

Hi Siew,

My superior has offered me 2 options:

A. Termination package:-

1. I have to tender my resignation letter

2. Company B will compensate me with 1 month notice period, 1 extra month as compensation and pay accordingly for my accumulated leave of 14 days

B. Dismissal

1. Company B will give me a letter to dismiss me for the reason of 'contribution delivered is not justifiable for my pay' or 'performance under expectation'

No warning letters has been issued to me for any shortcomings, misbehaviour, misconduct and whatsoever. I am currently 5 months pregnant and has tenure with the company for 5 years.

Do I have a case against the company if I want to fight for laid-off benefits and maternity benefits? What should be my answer to the management at this juncture?

I am desperately needing your advice as they will talk to me tomorrow.


KL Siew
Fri, 28 Mar 2008 09:42:50 AM

I think package A is not attractive. So, let them dismiss you and you will approach the Industrial Relations Department to seek redress. Give them a fight.

Tue, 01 Apr 2008 02:31:07 PM

Now they counter offer me either a) stay; or

b) tender my resignation with the following compensation:

1 month notice period (with allowance), 3 months compensation (without allowance)

They told me this package is out of goodwill for my past contributions and this is not a retrenchment package (I guessed they never file for retrenchment when they spoke to me earlier on).

I am really not happy working here. Do you think option b is reasonable or shall I stay until after my maternity (another 7 months)?

KL Siew
Wed, 02 Apr 2008 07:41:25 AM

Of course the choice is yours.

However, since you are not happy to work there, you may try to tell them to pay a bit more by using the Employment(Termination and Lay-off Benefits)Regulations 1980 as a guide to pay the compensation although you are not covered by that Regulations. Based on the Regulations, it is 20 days wages for every year of service i.e.

(Your total salary x 12 months)/365 x (20 days x 5 years service)=?compensation.

You may also consult the Industrial Relations Department to get another opinion.

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