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17/01/2009 14:32:01
Re: Transfer issue

I have a question about transfer matter. the situation is like this..

A is an employee of Co X (subsidiary of XX Holding Co). But the employer want to transfer him to Co Y which is one of YY subsidiary and have different entity but still under XX Co. But he refuse to move. actually there is no different in terms of his salary and benefit.

Can an employer issue a show cause letter to him and if the employer does not satisfied with his reason,can an employer conduct a Domestic Inquiry against such employee.

Can we ask him to resign or terminate him after such 2 process is done i.e Show cause and DI?

What else can an employer do despite of these two?

What are the extreme punishment that the employer can put on this type of employee who refuse to follow his superior order to move to another Co?

Can you explain about Associate Co?whether an employer has a right to transfer their employee to another co but within its associate co?Hope you can advise me on these matter..

Thank you..really appreciate your help..
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KL Siew
17/01/2009 15:51:39
To me, company Y is a different company and different employer. The question of transfer does not arise. He surely has the right to refuse if he does not want to work for that company. If company Y were so keen to employ him, make him a good offer see whether he wants it or not. You may seek further opinion from the Labour Department or the Industrial Relations Department.

As for "associated company", you better consult the Registrar of Companies or your own company accountant.

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17/01/2009 16:12:57
TQ..but let say Co Y is one of subsidiary of XX holding co,can the employer issue a transfer letter to that employee.

What is the punishment for the employee due to his refusal? Can we issue show cause letter n conduct DI?
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KL Siew
17/01/2009 16:53:27
First, in this present contract of service is there a transfer clause stating that the employee must accept transfer?

Of course you can conduct DI for insubordination or whatever reasons and mete out whatever punishment management thinks fit.
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20/01/2009 12:34:57
- if let say the contract stated that the employer reserve the right to transfer within the company, is it include transfer within the Group of Companies?

-Can an employer transfer him within the Group of Companies?

-In MAlaysia, is there any Act which is similar as TUPE 2006 regulation(Transfer of Undertaking (Protection of Employment)?

- Is it true whenever any employee's employment moves from one company to another associated company, continuity of employment is preserved?
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KL Siew
20/01/2009 13:26:10
Of course you can put whatever clauses in the contract, but when disputes arise, I don't know how the Industrial Court will decides should the case reach there. Power to transfer staff can be abused. Try to get some opinion from the Industrial Relations Department also.

I am not aware of any Act similar to TUPE.
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