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Company withdraw offer of employment contract before the joined date.

Norziana Mohd Naser
Tue, 02 Oct 2012 11:55:42 AM  (Last updated: Tue, 02 Oct 2012 02:42:09 PM)

Dear All,

Due to company business directions, we are unable to employ one of our offered candidate (Employment Agreement already signed) who is supposed to commence work in a month's time. We have given him a call to inform about this news and Company will pay for 1 month notice in lieu to him & the candidate aggreed.

My question is does the payment in lieu is subject to EPF? & Should company register him as an employee?


KL Siew
Tue, 02 Oct 2012 02:42:09 PM

For me, I would pay from other account like petty cash as some misc. expenses and not as salary. Your accountant should be able to advise you.

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