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17/02/2009 14:00:43
Re: Company Shutdown

Our Director call one-by-one and told us about the company going to close-down soon. He told that will going to give us 1 month notice and request us to find job as soon as possible. The reasons is due to shareholder refuse to continuos business.

My situation is, I just work for the company only 8 months. As per our HR advice, there is no special benefits on payment to those that not work more then 1 year. They will only pay up-to date wages.

1. Kindly advice what is the benefits of terminated by Employer for those less then 1 year.

2. If the boss request us to resign, whether we should proceed as his order? Because the company financial run very bad.

3. If company declare bankrupt, then what is employee's benefits. Or it will go to 'ZERO'?

4. What is the different treatment of company close-down and bankrupt.

Really need your advice. Because I had read the website and still unable to understand the benefits statement.

Thank you.
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KL Siew
17/02/2009 14:25:05
It is true that there is no termination benefit for those who worked for less than a year. You can read the Employment(Termination and Layoff Benefits)Regulations at for more info.

In you case, you are entitled to:
1. Notice of termination of service according to the length of notice in the contract of service or equivalent salary if no notice is given;
2. Prorated annual leave.if you have not taken leave.

From the info given by you, your company may not be bankrupt. I am sure some of your colleagues will be complaining to the Labour Department and you can join them to gain a better understanding of the case.
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14/05/2009 11:54:41
Hi Consultant,

My company currently shutdowns 1 to 2 normal working days every week for the past 3 months due to business slow down. The management also given VSS due to business slow down. But recently I see, majority of the staff are requested to come to work by individual superior on the shutdown days. Majority of them are same race.
1)Is this right according to Malaysian Labour Law?

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