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17/07/2008 15:56:03
Re: As Employer Question

I'm one of the company director. But I have few question to ask :-

1> As per appointment letter, staff resign shud give 1 month notice regardless number of years service.

Why when the company stop the staff work with the company shud give 1 mth notice with included the termination benefit ???

Clearly, see that employment act did not protect the company.

2> If I have close/change my company to another name. Shall my employee continue calculate benefit as per my old company. Example : Annual Leave, salary package, postition & etc

Pls guide.


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KL Siew
17/07/2008 16:43:37
1. The Employment Act is meant for the protection of certain categories of employees. Every country has such protective law. Between masters and servants, I think it is fair to provide protection to the servants.

2. Yes, that;s correct.
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18/07/2008 09:59:36
{ 1 } Can you adv the emploment act will protection of certain categories of employee, example abt what ???

{ 2 } I know it is fair to provide protection to the servants, but employee did not perform well...example ..engage over the phone, late coming after office hour, punch in on time but breakfast after office hour..all this bad attitude happend due to manager do it so...

{ 3 } My company have many old staff, but their working attitude was so badly. When my HR question them, they will said ask company give us letter to leave the company..i personnally feel that they using the labour law against the company. Due to of notice of termination by employee & by employer was so difference. Employee give company 1 mth notice but when company give 1 mth notice need to included termination benefit...

{ 4 } U mean if a company change to another company, staff have to follow old appointment letter... The new company will not issue any employement letter....

{ 5 } Mr X working with A company as Executive with basic Rm1500 since 1/3/2005. Pls adv if A company change to B company, what is the actual offer give to company B.

{ 6 } I heard there is a word call "VSS' what is this for ???
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KL Siew
18/07/2008 11:35:13
In order to know more about the Malaysian labour laws, I suggest you get acquainted with the Employment Act and the Employment (Termination and Layoff) Benefits Regulations. Both can be found on this website.

1. Please read the First Schedule of the Employment Act at This the place where "employee" is defined.

2. The Employment Act gives protection in the form of minimum benefits such as working hours, rest days, leave, sick leave, maternity benefits and so on. It does not provide protection for those matter mentioned by you. It is up to the employers to maintain discipline. Disciplinary actions should be taken by the employers for 'bad employees'.

3. The working relationship between employer and employees seems to be not so good in the company. Need to improve. You pay termination benefits in normal termination and you do not have to pay when the employee is dismissed due to misconduct. Please read Regulation 4(1)(b)below:

"....4. (1) Subject to paragraphs (2), (3) and (4), an employee shall be entitled to termination benefits payment where his contract of service is terminated for any reason whatsoever otherwise than -

(a) by the employer, upon the employee attaining the age of retirement if the contract of service contains a stipulation in that behalf; or

(b) by the employer, on the grounds of misconduct inconsistent with the fulfilment of the express or implied condition of his service, after due inquiry, or

(c) voluntarily by the employee, other than under section 13 (2) or the reasons specified in section 14 (3) of the Act....."

4. What I meant was the new company should not provide terms and conditions of service less favourable than those in the old company. Again, you must read the Termination and Layoff Regulations in order to get a better picture.

5. His salary and other terms and conditions should not be worse than before.

6. VSS stands for Voluntary Severance Scheme. When a company is not doing well and wishes to downsize, the company may work out a scheme for the employees to choose. The scheme usually involves payment of monetary incentive. If the employee is happy with the offer, he may choose to accept the offer and leave the company and everyone is happy. Those who do not want to accept (may be the offer is not attractive), they will choose to stick on.

Finally, if you have the time, I think it is a good ideal to attend some labour law courses as these labour problems seem to be bugging you.

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