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22/10/2009 11:11:45
Re: Termination Of Employment Due To Closure Of Company


I have recently been told that my employment will be terminated by end of this year due to closure of company and moving of business operation to another country. I received the termination notice which indicates that company will compensate me with 1 month salary per year of service. I've been with the company for 5 years and my present salary is more than RM5k. My questions are :

1) Should I just sign the notice and accept the compensation (5 x basic salary) amount offered by the company?

2) Is there a minimum amount of compensation or a formula that should be followed by employer when calculating the amount ? Someone told me that I should negotiate and try to get them to compensate more.

3) Can I get help from Industrial Relations Dept on this matter?

Thank you!
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KL Siew
22/10/2009 11:29:41
The quantum of termination benefit under Employment(Termination and Layoff Benefits)Regulations, is 20 days salary for each year of service. Your offer of one month salary for each year of service, may not be too bad.

You can get an opinion from the Industrial Relations Department before you make up your mind.
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