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LAYOFF COMPENSATION

Tan L
Member
Sat, 18 Sep 2010 10:13:30 AM  (Last updated: Sat, 18 Sep 2010 02:54:26 PM)

Hi,

Good Day!

The company I am working has sold the factory and decided to wind the business by end Dec this year. The workforce comprises of management staff and production wokers (both local and foreign) of 35. Please advise on the following: (1) What are the procedures the company need to do prior to layoff workers? Is there a need to inform Labour Office and notify all workers in writing? Is there any dateline for these to be done? (2) As the manager of the company, I draw a basic salary of RM 5000 / mth and have served the company for 11 years. What is the basis in the computation of layoff compensation? Besides salary, will annual bonus, petrol allowance and other allowances be taken into consideration in the computation of layoff compensation? (3) If the new owner (under a different company) decided to re-employ us, are we still entitle to layoff compensation? (4) Is there any loopholes or catch where employees need to be caution during the winding up exercise as we fear not being compensated? (5) Is the company under obligation to pay in cash for unused annual leave after notification of layoff?

 I would appreciate your kind advise on the above matters.

Thank You.

L Tan

KL Siew
Administrator
Sat, 18 Sep 2010 02:54:26 PM

You can get advice from either the Labour Department or the Industrial Relations Department. Go and discuss the issues with some of the officers there. Meanwhile, acquaint yourself with the Employment(Termination and Layoff Benefits)Regulations.

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