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Jim Brown
02/08/2008 12:28:53
Re: Years of service calculation


I am new at this.

I will be leaving my company soon. I am required to serve 2 months notice. However I am only able to serve 1 month and the company want me to pay the 2nd month notice in "lieu of my service".

Now on top of that the company will also be paying me some gratuity and this is based on period that I have served the company.

I want to know if the payment for service for the 2nd month should be considered as part of my service period on the gratutity calculation.

Thank you for any help that you are able to provided.

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KL Siew
02/08/2008 15:29:56
There are two ways of looking at the matter. First, if it were the employer who paid you an indemnity so that you could leave the company earlier, then I think the period should be treated as a period of service for the calculation of gratuity purposes. Now, in your case, it is you who wanted to cut short the period of notice by paying an indemnity, I think this short notice period should not be considered as a period of service for the purpose.

Get another opinion from the Labour Office or the Industrial Relations Department. There is no provision in the Employment Act for payment of gratuity.
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Jim Brown
07/08/2008 15:31:09
Thank you for your views.

Will see what the HR people will tell me.
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