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15/07/2010 19:12:39
Re: termination of service due to company running a loss

due to the failure of my business which running a loss, i have intention of asking 1 of my staff to resign by giving her 2 weeks notice according to the terms of her employment contract. i do offer to reinstate her if the runs better or whenever i need part time staff or if i happen to establish a new business. But she ask me to issue her a termination letter because her father said so. Furthermore, her father will take actions against me by asking 3 months compensation.
I would like to find out that if this really happen, do i have to compensate her although i adhere to the terms and conditions of the employment contract? In face, i have the intention to reduce the business or to terminate it. Your kind and prompt attention and reply on this matter is highly appreciate.
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KL Siew
15/07/2010 20:23:36
I would suggest you read up Section 12 of the Employment Act on termination of service and theEmployment(Termination and Layoff Benefits)Regulations about payment of compensation (termination benefit).
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