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Termination Staff

PYC
Member
Tue, 03 Mar 2020 04:44:12 PM  (Last updated: Wed, 04 Mar 2020 09:03:00 PM)

Hi,

Would like to get some opinions from you guys. As there has been a downturn in the market in Malaysia we need to terminate a number of our staff. Can you please confirm the process of what we need to do. Will there be an redundancy payouts, etc.We would like to terminate all staff at the end of March.

Appreciate your prompt reply. Thank you.

KL Siew
Administrator
Wed, 04 Mar 2020 03:54:41 PM

1. Give them termination notice based on notice period stated in the contract of serivce;

2. Pay termination benefits based on the Employment(Termination and Layoff Benefits)Regulations.

ShzwnyShahdan
Member
Wed, 04 Mar 2020 09:03:00 PM
Originally posted by PYC on Wed, 04 Mar 2020 09:03:00 PM

Hi,

Would like to get some opinions from you guys. As there has been a downturn in the market in Malaysia we need to terminate a number of our staff. Can you please confirm the process of what we need to do. Will there be an redundancy payouts, etc.We would like to terminate all staff at the end of March.

Appreciate your prompt reply. Thank you.

Hye there,

Firstly, i would like to know whether the Company is going for a closure of business (given the fact that all employees will be released). If that is the case, it looks like the employees will be retrenched on the ground of redudancy i.e closure of business. In law, closure of business is a good ground for retrenchment as long as the employer is able to prove that it is done in good faith and in the best interest of the Company.

It has been a good practise for the employer to adopt pre-retrenchment steps before the impending retrenchment  exercise. The steps include to give notice to the employees as early as practicable and also to find/offer any available positions in the Company's subsidiaries and/or group of companies (if any). 

I agree with Mr Siew in the sense that the Company has to pay the termination/layoff benefits (based on the financial abilitiy of the Company) to the affected employees in giving the best message that the exercise has not tainted with any bad-intention. The Company also needs to inform the JTK on the impending retrenchment exercise. For this purpose, you may call JTK to get their advice what sort of information that you need to put in the letter.

(nienasya@hotmail.com)

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