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28/08/2011 02:42:24
Re: Termination Notice or End Of Contract

We have hired 1 employee ( salary RM8K which under IR ) starting from 1 july 2010 ~ 30 Jun 2011 which stated in his contract.
On which 25 June 2011 my management has decided not to continue his contract. However in order to be fair to him we have given him extension for another 1 month starting from 1 ~30 July 2011 in order for him to settle all putstanding etc.
The employee has claims that he has been treated unfairly since we have temrinated his contract by not giving him 2 months notice as stipulated in his contract. I've explained to him that his contract is not under termination since the duration is already completed and spelled earlier.
I've called 3 IR Offices and i've received diferent version. Some officers told me that i have to give notice and some told me that this is considered as termination and considered as open ended contract.
Anyone experienced this before or have any IR award regarding this?
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KL Siew
28/08/2011 14:06:20
It is not clear how the two months notice clause is worded. You have to show the contract to the IR Officers for them to give a proper answer. Anyway, when you are unsure, you just go according to the wording of the contract. However, although that staff of yours is not covered by the Employment Act, a section in the Act on fixed term contract may serve as a useful guidance to you.

"11. Provision as to termination of contracts.

(1) A contract of service for a specified period of time or for the performance of a specified piece of work shall, unless otherwise terminated in accordance with this Part, terminate when the period of time for which such contract was made has expired or when the piece of work specified in such contract has been completed."
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