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Nana Tan
13/10/2011 17:19:18
Re: Termination of Contract

Dear Sirs,

Our company has recently lost one of biggest contract, however, the management try to keep those who is high performer in the company (which they are mainly from servicing this client who we lost recently).

Instead, we would like to terminate those low performer with attitude and behavior problem. They are all above RM3000 salary which is not cover under the EA.

However, the termination plan is to give them salary in lieu of notice for 3 months as per our employment contract on top of that, the HR has follow EA guidline to pay them severance pay according to individual year of service.

My question is, if HR did according to above, will there be any other risk? We would like to make sure this is in line with the labor act.

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KL Siew
13/10/2011 21:01:36
Although what the HR people are doing is not wrong as long as there is no problem with those affected. They still have the right to the Industrial Relations Department if they think the termination is unfair and want to claim for reinstatement.
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