Yen
jellyenc@yahoo.com
6/1/2007 10:44:06 AM
Re: Effect of hire-purchase agreements on employees

I have been working with my company for 7 month and now my company will be sell to another company in this june. In their S&P agreement, i will be absorb into the new company. Today i have receive a termination letter from my company before the new offer letter arrive. My company force us to sign it or else the offer letter from the new company will not be deliver. Should we sign? Moreover, in the termination letter, there is no statement state that the company will compensate us any wages. All of my colleagues were not being pay of lay-off benefit because our CA did not state so? Is that fair?
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Kl Siew
kl_siew@yahoo.com
6/1/2007 1:39:00 PM
I think you better accept the offer and please read Regulation 8 of the Employment(Termination and lay-off benefits)Regulations 1980 quoted below:

"8. (1) Where a change occurs (whether by virtue of a sale or other disposition or by operation of law) in the ownership of the business for the purposes of which an employee is employed or of part of such business, the employee shall not be entitled to any termination benefits payable under these Regulations, if within seven days of the change of ownership, the person by whom the business is to be taken over immediately after the change occurs, offers to continue to employ the employee under terms and conditions of employment not less favourable than those under which the employee was employed before the changed occurs and the employee unreasonably refuses the offer.

(2) If the person by whom the business is to be taken over immediately after the change occurs does not offer to continue to employ the employee in accordance with paragraph (1), the contract of service of the employee shall be deemed to have been terminated, and consequently, the person by whom the employee was employed immediately before the change in ownership occurs and the person by whom the business is taken over immediately after the change occurs shall be jointly and severally liable for the payment of all termination benefits payable under these Regulations.

(3) Where an offer by the person by whom the business is taken over immediately after the change occurs to continue to employ the employee is accepted by such employee the period of employment of the employee under the person by whom the employee was employed immediately before the change occurs, shall, for the purposes of these Regulations, be deemed to be a period of employment under the person by whom the business is takeover, and the change of employer shall not constitute a break in the continuity of the period of his employment."

Please consult the Labour Department also if you have any more doubts.

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