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Lee
03/09/2011 13:25:26
Re: Resignation with immediate effect

One of my staff has resigned and willing to serve her one month notice. However due to her "attitude" problem, i'm willing to compensate her one month salary for her to leave the company immediately. Her salary package as follows :
Basic - 932
Transport allowance - 280
Phone allowance - 30
Attendance allowance - 50
Total - RM 1292

For her one month compensation, do i only pay her the basic or i need to take into consideration of the allowances as well?
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KL Siew
klsiew@pesaraonline.net
03/09/2011 18:23:40
According to Section 13 of the EA, it talks about "...wages which would have accrued to the employee during the term of such notice ...". As such, I think the indemnity which you are going to pay should base on RM1292. You can of course try to get an official opinion from the Labour Department.

13. Termination of contract without notice.

(1) Either party to a contract of service may terminate such contract of service without notice or, if notice has already been given in accordance with section 12, without waiting for the expiry of that notice, by paying to the other party an indemnity of a sum equal to the amount of wages which would have accrued to the employee during the term of such notice or during the unexpired term of such notice,
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