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Tina Abdul
26/08/2009 10:49:58
Re: VSS vs Ex-Gratia

My company will be closing down in December 2009 and relocating to another region. I have since found another job and the company has decided to release me earlier and pay my VSS. Problem is right now, my company has not reported the office closure yet to the Ministry of Human Resource and other relevant parties and I was informed that since I have decided to leave earlier, they would have to pay me ex-gratia and treat my leaving as a resignation. That means VSS vs ex-gratia I would not be entitled to the income tax exemption for VSS of RM10K per year of service. Why is the company not treating my leaving as VSS since I have been left redundant already? They said that I should wait until December 2009 to be deemed as VSS. What are they playing?
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KL Siew
kl_siew@yahoo.com
26/08/2009 13:17:27
We don't want to speculate what the company is up to. If I were to run the company, I wont simply offer VSS and let everybody take it and go. I might end up without workers especially the good ones. I might give a longer waiting period (like what they are doing) hoping someone (like you) who has not problem in getting another job would resign on their own. If they cannot wait and resign, then they will save the VSS payment. Besides, I might not want to relocate after all.
In your case, you have to judge the situation yourself. Compare the VSS and the ex gratia payment if there is any big difference and how much you will get in your new job if you already had one. Anyway, pay a visit to the Industrial Relations Department and discuss your situation with them.
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Tina Abdul
26/08/2009 13:26:42
Hi, thanks. It is a lot of money and my new job is a lower salary (less RM2,500) so that is why the difference is huge for me to consider not being eligible for tax exemption fitting for a VSS employee.
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KL Siew
26/08/2009 13:34:13
Tough decision for you in deed. Negotiate further with them. But I have come across some who resigned before VSS didn't get any ex gratia payment at all.
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