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Lay off employee

Fri, 16 Mar 2007 05:11:09 PM  (Last updated: Fri, 16 Mar 2007 05:49:25 PM)

I would like to enquire if a company wants to layoff an employee or an early retirement for the employee (employee is 53 yrs old) - does the company have to compensate the employee?

Or if the company puts the employee on a retainer fee, how much should the retainer fee be and for how long. And would this be considered fair to the employee?

KL Siew
Fri, 16 Mar 2007 05:49:25 PM

You have to compensate him. If the employee concerned is covered by the Employment Act 1955, the amount of termination and lay-off benefits is as follows:

" Regulation 6. (1) Subject to the provisions of these Regulations, the amount of termination or lay-off benefits payment to which an employee is entitled in any case shall not be less than -

(a) ten days wages for every year of employment under a continuous contract of service with the employer if he has been employed by that employer for

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