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Payment in Lieu of Notice (buy up)

Wed, 11 May 2011 12:58:36 AM  (Last updated: Fri, 13 May 2011 07:04:48 PM)

my comp need 2 month of notice and i need to given short notice for new company willing to buy up but the problem is, how to calculate the payment? just 2month salary or is calculated as below? my salary is RM2000/ mth

this is the calculation  by my HR

notice required  : 60 days
notice given       : 6 days
number of days due to company : 54 days

payment in lieu of notice : RM 4153.85 ( RM2000/26 * 54 days)

the question is need to paid RM4000 or RM 4153.85?

KL Siew
Wed, 11 May 2011 08:48:07 AM

Two months salary at RM2000 per month (2 x 2000) cannot be more than RM4000, isn't it?

Wed, 11 May 2011 09:18:50 AM

the argument is the employment letter there is stated 2 month notice in there any different between notice 2months/8weeks/60days?

Farahiah Sainai
Thu, 12 May 2011 11:24:44 AM

 hye, i got problem calculate for my staff balance annual leave. 

she tender resignation letter on 31/3/2011for 2 month notice,so she will last day on 30/5/2011.

last year 2010, she entitlement 8days annual leave (from 1/6/2010 and expiry 31/5/2011), and she taken 4days already in 2011.

for 2011, she entitlement 14days. 

so, how about the calculation for the balance pay in lieu.

this is from me:-

balance 2010 annual leave entitlement c/forward to 2011 = 8days

2011 annual leave entitlement                                       = 14days

total                                                                           = 22days

5month / 12months x 22days = 9days

deducted leave taken             = 4days (this is for 2010 8days entitlement)

balance pay in lieu                = 5days

please correct if my calculation is wrong. thanks

KL Siew
Thu, 12 May 2011 05:55:06 PM

To CH Wah: Obviously, those terms are not the same.

To Farahiah: From the way you described thing, I really don't what is the balance of leave. To make thing simpler, if you allow her to take her leave balance, just deduct those days from the period of notice and let her go.

wong chee leong
Fri, 13 May 2011 07:04:48 PM

Would like to check here the payment in lieu if buy up from the new company, should if calculated based on the basic salary or need to add-in all the allowances?

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