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Lihong
17/04/2018 14:53:41
Re: Notice In Lieu

I have a query regarding the statutory definition of notice pay in lieu, and whether it is based on calendar days or working days.

Below is the information we found from our existing documents, could you please check whether it is still valid or not? As I can not find any support legislation on this, please also share the related legislation on notice pay in lieu. Thanks!

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Payment in Lieu of the Notice Period
Either employers or employees may make a payment in lieu of notice. Either party may waive the right to notice of termination.

The payment is equal to the monthly salary divided by the number of calendar days in that particular month multiplied by the number of days of the notice period. The monthly salary refers to monthly basic salary only and does not contain any overtime payments, allowances, and so on.
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KL Siew
klsiew_my@yahoo.com
17/04/2018 16:11:28
Section 12 and 13of the EA may be helpful to me.

13. (1) Either party to a contract of service may terminate such contract of service without notice or, if notice has already been given in accordance with section 12, without waiting for the expiry of that notice, by paying to the other party an indemnity of a sum equal to the amount of wages which would have accrued to the employee during the term of such notice or during the unexpired term of such notice.
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Lihong
18/04/2018 10:41:25
So may I know the notice in lieu is based on calendar days or working days?
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KL Siew
klsiew_my@yahoo.com
18/04/2018 15:31:36
Calendar days.
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