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Alan
02/05/2010 18:28:11
Re: Termination of Frustrated and Repudiated Staffs

Dear Siew,
I have a situation here, the Company is in the direction of Reorganization to improve Productivity and Financial Performance to pre-empt any business downfalls in the near future.
The Case:-
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Staff 1 and 2 are brother in relationship. When we started the manufacturing in 2002, they were hired as the Company feels that it was and added advantage to have family members involved to prevent the leakage of trade secrets as we have not set up the preventive procedures in the 1st place. Staff 1 in charge of Production and Quality Assurance, Staff 2 incharge of Logistic, Warehousing and Planning (but with LCCI background).

We recently restructure to deploy Staff 2 to handle Accounting looking at his future (in-case we shift to 3rd party manufacturing, he will have difficulty to find the same job with same wages) due to his educational background, but he repudiated the appointment by giving reason he has no interest in accounting anymore. In the event, we insist him to do so, he and his elder brother (Staff 1) treatened the Company " Big Things" will happen and will not let the ISO/HACCP Certification renewed smoothly.

Staff 1 and 2 treatened the Company to issue MEMO for every job instruction from the Top Management eventhough it is understood as their responsibilities and routines. Verbal job and company directive will be declined by them eventhough from the mouth of Managing Director.

Raised their voice (in fighting mode) when the Managing Director talked to them about the restructuring of organization for better future. The Company has given them many chances for their improvement, but as per now for years, the Company is Frustrated with their THREATENING BEHAVIOUR, SHOW NO RESPECT TO IMMEDIATE SUPERIOR AND MANAGING DIRECTOR, MAKE THIS DIFFICULT FOR THE COMPANY TO MOVE FORWARD for the sake of shareholders and company.

They always challenge the Company if to terminate them must compensate them like VSS kind of benefits by Multinational Companies as they have been with us for so many year. They will do their job as per requested but it always started with "heavy argument - do their own way" first and not the Management way.

Having been tolerate with their attitude and behaviour for years, We have decided to terminate them based on their Appointment Letter whereby termination notice by either party is 1 month due to the Frustration faced by the Top Management.

Staff 1 and 2 have been with the Company since 2002 and 2001. Can we terminate and compensate in lieu based on the Letter Offer/Employment Agreement/Contract or have to follow their challenge to terminat them based on VSS benefit?

Awaiting your reply ASAP.

Thanks.
Alan
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KL Siew
klsiew@pesaraonline.net
02/05/2010 22:04:33
Since the parties can no longer get along, I think it would be better for the parties to discuss the problems and try to settle them amicably. Offer them an attractive VSS. Alternatively, both parties can also approach and seek help from the Industrial Relations Department in order to reach an amicable settlement.
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Alan
03/05/2010 12:45:49
Thanks Siew for your response. I read through the Malaysian Labour Law that Employer owns the right to terminate an employee based on a few reasons and two of them are Frustration of Contract and Repudiation of Contract and under Employment Act if the termination is in the absence of notice, compensation is based on 5 years or more - at least 8 weeks. Can I take this approach?

Thanks
Alan
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KL Siew
03/05/2010 13:35:29
In addition, you may also want to read up the Employment(Termination and Layoff Benefits)Regulations about payment of termination benefits.
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alan
03/05/2010 16:48:24
Hi Siew, thanks for your prompt response. It will be a sad thing to say that very soon employer will no longer hire long term staffs due to the potential threat. To be safe, all will be contracted staffs. I don't mind to keep good and quality staffs, but not frustrated staffs that change alltitude overtime thinking that they are covered by VSS benefits...of which no one will agree to do so. Your comment on this, please.

Thanks
Alan
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KL Siew
04/05/2010 16:00:05
There is nothing much I can comment. Different employers have different ways of managing their staff. Some can do it better than the others, some are more lucky to have good staff while others have not. Reading some personnel management books may help perhaps.
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james
24/05/2010 12:03:49
alan,
"very soon employer will no longer hire long term staffs due to the potential threat."

1. You imply that all your staff are like Staff#1 and #2.

2. Do you really think converting your workforce into a contingent one would be the panecea to your ills?
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