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22/11/2014 01:55:53
Re: Letter of termination

Scenario: it was announced that the company will be undergoing a change in strategy and therefore our positions have been made redundant and that we were given 3 months' notice of termination of employment. Within a month of the announcement we were issued a formal letter of termination indicating our last date of employment falls 2 weeks short of the expiry of the notice period.

1) If the employee has already been given a formal letter of termination indicating the last day of employment, does the company have the right to re-issue the letter of termination to amend the last date of employment i.e. to the last day of notice?
2) Does the employee have the right to refuse to accept the amended letter?
3) If an amended letter is issued are the employees still entitled to the payment in lieu of notice as per the original letter?

Your feedback is much appreciated.
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KL Siew
22/11/2014 08:25:22
In my opinion, the first letter should stand. If they shortened it, it is like terminating the service earlier and they have to pay indemnity for the short notice. If the problem is not resolved, you can bring the matter up with the Labour Department. Since it is a retrenchment, I suppose they did offer some form of termination benefits to those retrenched.
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22/11/2014 21:22:35
Hi Mr. Siew,

Thank you for your prompt feedback.

The amendment in the letter mentioned is to postpone the last day of employment rather than cutting it short i.e. where in the amended letter we would be required to work for additional 2 weeks.

You are most certainly right that we are given severance package however we are concerned that should we dispute the amended notice of termination our employer might choose to hold our compensation until we relent.

Thank you again for your advice.
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KL Siew
23/11/2014 08:52:22
In that case, you have to decide, I don't know why they wanted to lengthen the notice period.
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