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Wei Wei
17/03/2008 23:52:08
Re: Benefits of employee upon Closing company and Transfer to new company (agent)

Hi ,

I am working in a Malaysian branch where the mother company in overseas. The management decides to close the branch and transfer all the staffs to a new company (agent). The mother company will pay us salary through the Malaysian agent.

I wish to know that

1. Can the company just transfer us without any compensation by saying that all our benefits, constribution, etc will be carried on and remained unchanged? If this is mentioned in the new agreement, will it be enough to ensure our benefits?

2. I prefer not to accept the above and insist for compensation. The new company should take us as new employee. Do I have the right to fight for this?

Wei Wei

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KL Siew
18/03/2008 07:16:49
Regulation 8(1) of the Employment(Termination and Lay-off Benefits)Regulations 1980 quoted below may give you the answer. For full details please read the Regulations which can be found in the this website:

"..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..."

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Wei Wie
18/03/2008 23:27:41
OK thanks I read the regulation but still one more question : The Regulations apply to the employee with salary less than RM1500 only? Or apply to all the employee?
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KL Siew
19/03/2008 09:46:57
For non manual employees with salary less than 1.5K. You may use it as a guide for those over 1.5K.
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