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01/10/2009 14:09:53
Re: Termination by the company


I have a friend who got terminated by his company today. The company served him 1 mth notice. The following is the abstract of the letter :-

"your redundancy will be effective on 1st oct... you shal continue working from present date til 31st oct..and ur salary will be paid accordingly.

One of our major clients has recently informed us of their decision to terminate our contract for the provision of outsourcing services for technical development and the call centre which will bring about a huge lopss of income for the company.

After full consultation with the kementerian sumber manusia malaysia and examining all possile options, due to these unfortunate circumstances I have to take action by cutting back on expenses that you are no longer sustainable by the company.

We reviewed all departments to decide that redundancies would be the most economical for the company......"

My question is can a company do that? Can they serve 1 mth notice and did not pay any retrenchment fee? I was made understand that if the company can justify the redundancy, they are allow to do this... is this true? If so, every company can misuse such rights and make the staff redundant.

Please advise.
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KL Siew
01/10/2009 16:39:01
There are two ways your friend can use:

1. If his salary is below RM1500, he can approach the Labour Department to see any termination and layoff benefit is due to him.
2. If his salary is over RM1500, he may approach the Industrial Relaltions Department to make a claim to get back his job.
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02/10/2009 15:07:40
But I was made understand from someone that the employer can opt for redundancy without any compensation or whatsoever if they can justify that the position is no longer required.... is that true?
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