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Tina Abdul
14/07/2009 16:16:06
Re: Retrenchment

Hi, I would like to know about the retrenchment benefits in Malaysia. I am working in a large MNC for the past 14 years and there was communication that our regional office will be relocated to other parts in Asia by end of the year. Meaning, that our office will be closed by end of the year. Some of us has job placements within the Malaysia and other affiliates while some of us have not, meaning that we are being earmarked for retrenchment by end of the year.

My question is, since that the company will be closed by end of the year, but I have managed to secure a job recently, therefore, am I still entitled to the retrenchment benefits that was informed to me earlier? Is there such a thing that the company would refuse to pay me on the grounds that I left earlier and not until the company is closed (end of the year?) What are my arguments as I would not be even thinking of looking for a job anyway but due to unforeseen circumstances, I need to look for a job, even taking a very deep pay cut.

Thanks.
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CK
14/07/2009 16:32:38
In the first place, the communication about the relocation was a rumor or in a written notice? Have you been offered a VSS prior to getting the new job?
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Tina Abdul
14/07/2009 16:52:13
Hi, we have had a one to one communication already in April 2009 with our respective supervisors and I was one of the soon to be retrenched staff as they could not find any local job placements for me. No, it is not a rumour. No written notice provided by the company.
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CK
14/07/2009 17:00:31
If that's the case, you should be entitled for the compensation from your company though there is no written notice, as there are many other "victims" who can witness the offer of VSS verbally by the management.

Consult Labour Department if necessary.
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KL Siew
14/07/2009 19:13:21
To Tina.
You have acted a bit too hastily but can't blame you. Looks like your case is not encouraging. Read of following regulation of the Employment (Termination and Layoff Benefits) Regulation especially (c). If your salary is over RM1500, it is even worse, you tend to lose a lot.

4. (1) Subject to paragraphs (2), (3) and (4), an employee shall be entitled to termination benefits payment where his contract of service is terminated for any reason whatsoever otherwise than -

(a) by the employer, upon the employee attaining the age of retirement if the contract of service contains a stipulation in that behalf; or

(b) by the employer, on the grounds of misconduct inconsistent with the fulfilment of the express or implied condition of his service, after due inquiry, or

(c) voluntarily by the employee, other than under section 13 (2) or the reasons specified in section 14 (3) of the Act.



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TIna Abdul
TinaAbdul@gmail.com
16/07/2009 09:25:56
What is contained under Section 13(2) or the reasons specified in section 14(3) of the Act? In that case, what do they expect us to do? Sit and wait? I am lucky to be able to find a job quite quickly in these times. Malaysian Labour Law do not protect us employees much does it?
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KL Siew
16/07/2009 15:18:19
It simply means an employee is not entitled to the termination benefits if that employee voluntarily resigned. Why not try to get some clarification from the Labour Department?
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