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Difference between termination/cessation and retrenchment

May  
Guest
Tue, 17 Jul 2007 12:29:56 AM  (Last updated: Tue, 17 Jul 2007 08:06:51 AM)

Can a company terminate an employee (earning above 5k) by giving 2 mths notice and no compensation? Reason given being "poor financial performance which leads to a manpower rationalization exercise. as a result, the position has been eliminated".

Would this be considered as unlawful dismissal or retrenchment?

KL Siew
Administrator
Tue, 17 Jul 2007 08:06:51 AM

The company can give all sorts of reasons and it is not necessary you must accept them in toto.

Make a claim under Section 20 of the Industrial Relations Act first and if necessary, let the Industrial Court decide whether it should be wrongful dismissal, retrenchment, rationalization or whatever.

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