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18/07/2008 16:15:34
Re: company shut down

i would like to know, regarding on the matter above,
if my company shut down on a no-run production daily basis, and the company ask us to take annual leave & unpaid leave for this above matter, my question is..

1.Is this my company responsibility to pay my salary or my company dont need to pay me so? which is correct?

2.Should or shouldn't my company managing director force us to take our annual leave and unpaid leave regarding this no-run production daily basis? Can they force us so? Is it legal?

How may we overcome this matter if our management is wrong?
Any guides and tips?

Highly appreciate you co-operation in advance.

Needly in your support,

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KL Siew
18/07/2008 17:34:45
Sometimes, when business becomes bad, the company may instead of laying off workers, choose to cut down the number of working days to save cost. Under such circumstances, asking workers to take paid leave if there is any or unpaid leave, is quite acceptable, hoping that things can become better one day. Only when the employer fails to provide work for at least 12 working days that the workers are deemed to have been laid off. Regulation 5 of the Employment (Termination and Layoff Benefits)regulations below is for your reference:

" 5. (1) Where an employee is employed under a contract on such terms and conditions that his remuneration thereunder depends on his being provided by the employer with work of the kind he is employed to do, he shall, for the purposes of regulation 3 (b), be deemed to be laid-off if -

(a) the employer does not provide such work for him on at least a total of twelve normal working days within any period of four consecutive weeks; and

(b) the employee is not entitled to any remuneration under the contract for the period or periods (within such period of four consecutive weeks) in which he is not provided with work;...."

This type of situation is quite a problem. For better understanding of the matter , I think it will better for you to consult the Labour Department.

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