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05/08/2015 13:38:25
Re: Termination

Due to economy recession, our company has been through loss over the year. We decide to cut down our monthly overheads and would like to terminate 2 of our employees (service more than 5 years) and remain one young employee (joined us last year) to assist us.
The two employees salaries are RM 1,800.00 and RM 2,300.00.
Can we just terminate them by compensation of 8 weeks wages? How to calculate this compensation?
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KL Siew
05/08/2015 16:34:44
1. Apart from giving notice or payment in lieu of notice, you should also pay termination and layoff benefit. Click on the link to get the Employment(Termination and Layoff Benefits) Regulations.

2. Bear in mind that the employees concerned still have the right to bring the matter up with the Industrial Relations Department for wrongful dismissal and they may apply to be given back their job. Your action must be in good faith and not just to use recession as an excuse to get rid of some workers. I think you better consult the Industrial Relations Department and get some official advice what you should do.
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