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Edward Chan
01/08/2012 12:02:28
Re: Terminated and compensated rm 40k plus

Dear Mr KL Siew

Hope this message finds you in good health and would firstly thank you for the endless amount of effort in sharing info on HR issues. Hope you could assist me on the following as I was recently terminated.

I am drawing a salary of rm 3500.00 per month and just last week, the company that i had worked for the last 20 years terminated me and paid me around RM 40,000.00 as lay off benefit

1) Is this amount calculated correctly?

2) Can I get a second opinion from the Labour dept at Jalan Ampang as i suspect my category will fall under the industrial act and not under the EA?

Many thanks for your assistance


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Edward Chan
01/08/2012 12:22:46
Forgotten to add that they did not give me any 2 months notice of termination. I signed a letter on 26-7-2012 and with immediate effect was told no need to attend any work. But I guess the in lieu amount is calculated in the rm 40k

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KL Siew
03/08/2012 08:46:36
Yes, you are not covered by the EA. If you were to use the Employment(Termination and Layoff Benefits)Regulations as a guide, (as a guide only), the amount of benefits will be calculated as (3500x12)/365 x 20 x 20 years of service = 46000.00 about.

If you think 40K is too low, try to ask for 2 more months salary since they have terminated your service without 2 months notice.

If you are not happy with the termination, you should approach the Industrial Relations Department and get advice whether you should put in a claim for reinstatement. Let them advise you.

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Edward Chan
04/08/2012 09:35:22
Many thanks Mr Siew. Your advice duly noted. Have a nice weekend
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