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22/04/2010 19:15:22
Re: Company Contract service.

Hi, i have some concern regarding the contract of service. I am a director working in a family business since 1971. Since then i was not required to sign any contract of service nor do i received my letter of appointment. currently there is a request by the current board of directors for me to sign a contract of service .

My questions are :
1) what are the pros and cons of signing a contract of service

2) Can i refuse to sign the contract as i am already 55 years old and currently still a director of the company ?

3) Can you guide me to which labour law or section to refer ?
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KL Siew
22/04/2010 19:52:24
A director of a company may or may not be an employee. Some directors receive director fees and they are normally not employee while those who are paid a salary, contributing to EPF & SOCSO, are employees. In your case, I think it would be better for you to seek legal advice from a lawyer as you are most likely not covered by the Employment Act, which only covers employees with salary not more than RM1500 per month.
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