RegisterLog In

Difference between termination/cessation and retrenchment

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
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.

  This topic is closed