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13/04/2009 21:06:03

Most companies cited global economic crisis as the reason for shut down.

Can a company force employees to sign unpaid leave if it decided to shut down.?

Can a company terminate an employee for failing to agree to sign unpaid leave because of the shut down?

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KL Siew
13/04/2009 21:58:08
I think you better let the Labour Department know about it so that they may be able to look into the situation more closely. Different companies may experience different problems.
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14/04/2009 16:04:24
The factory has the option to proceed with plans to close the operation by reducing the overtime, working days and temporarily ask employeees to go for no-pay leave (temporary layoff) as part of its cost-cutting plan. The Company should communicate with its employees on a win-win solutions, try to let the employees understand the company situation in the current economic downturn.

But once it involves any retrenchment, the Management must let the Labour Department access and approve first.

No forced resignation or termination are allowed in such cases. It is against the Act.

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