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Termination by employer

Tue, 14 Jul 2009 08:05:55 PM  (Last updated: Tue, 14 Jul 2009 11:05:06 PM)

Dear Mr Siew,

My company has about 17 employees, 1 of them is drawing a very high salary. Due to the economy downturn, the sales has dropped by about 40%. It is a burden to the company to keep this employee whose salary is about 30% of the total salary pay out every month.

We are in the service industry. It has also come to the extent that a few client requested not to be serviced by this particular employee due to his attitude issues.

We have seek IR advice and we have been told that we cannot terminate the service nor cut his pay. IR said cut pay also has to get the employee consent.

Is there anyway the employer can terminate his service or at least to cut his pay?

Please advice.

Thank you.

KL Siew
Tue, 14 Jul 2009 09:04:22 PM

For the company to survive, you have to decide one way or another. You better have a heart to heart talk with him about the company's situation and how to overcome the problem. If you try to get rid of him because of his salary is too high or because of his attitude, it is not going to be easy. Why not try to offer him an attractive VSS.

CK Kong
Tue, 14 Jul 2009 11:05:06 PM

Hi Clouds, I heard of a similar case happened to a building material company before. Where the boss managed to sack a high salary salesperson, but subsequently the company's sales dropped tremendously. Apart from the company's overhead factor, do consider the price of chopping him off before action is taken. Cheers!

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