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Pay Cut & No Pay Leave - Double Whammy

Wed, 01 Apr 2020 11:56:02 PM  (Last updated: Sun, 12 Apr 2020 05:30:22 PM)

Dear Siew,

My company tried to effect a paycut and Unpaid Leave at the same time to staffs on the basis that company is not doing well and is done during MCO period. However, such scheme will result in an effective paycut of close to 80% from my employment contract and I find this too extreme. On top of that the below was the chronology of events: 

1. Initial communication was that to achieve certain threshold of savings and I gave a proposal of Unpaid Leave of 2 mths which will give them even slightly more savings.

2. My boss replied my email to say ok with Unpaid Leave but I must still come to work full time. I did not agree.

3. Subsequent proposal to me was a combination of pay cut then coupled with Unpaid Leave of close to 2 mths resulting in effective pay cut of close to 80% from my employment contract

4. The official letter was sent to us late, on the 1st of the payroll mth taking effect and after work hours in the evening and backdated to 2 days before.

5. We were told to sign on the letter to agree on the scheme given on that very same day - not given sufficient time to consider nor any room for negotiations.

6. Several staffs were told that if they do not sign the letter, it’s a deemed termination.

Do I stand a chance here for a solid constructive dismissal or unfair dismissal should they really terminate me on grounds of not signing the letter?

Which would be a more solid case? Constructive or unfair dismissal?

KL Siew
Thu, 02 Apr 2020 09:06:55 AM

I think it would be much better for you to consult the Industrial Relations Department by giving them a call, or better still pay a personal visit there to discuss the issues with the officer there.

Sun, 12 Apr 2020 05:30:22 PM

You don't have to sign any letter. Constructive dismissal is harder to prove. So, a more solid case would be unfair dismissal. 

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