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Retrenchment & termination Letter

Fri, 21 Nov 2014 03:50:31 PM  (Last updated: Fri, 21 Nov 2014 05:37:43 PM)


we are holding Engineer title, salary is more than MYR 2000/ permonth

companies given me and my colleague retrenchment & terminated letter .

As per letter shown on ( subject is : Retrenchment and Termination of Employment Service)

The Letter inform us as the same date on evening 31 Oct 2014 thought by mail.

Below is part of letter information.

(The companies will be terminated with effect from 31 October 2014.  In accordance to Labor laws of Malaysia, the Company is required to provide eight weeks’ notice period.)

(This retrenchment exercise is part of the Company’s efforts to restructure and downsize operations. The Company has evaluated and it has been ascertained that your position has been made redundant and in no way reflects your performance in your job which has been satisfactory.)

After final calculations of the 8 weeks, your last working day with the Company ends on 25 Dec 2014.

Any earned leave balance up to 25 Dec 2014 will be computed and encashed together with your final salary
Retrenchment Benefits amount are in accordance with Malaysia Labour Law

Final Amount on Retrenchment Benefits will be disclosed once we obtained approval from CEO
Please use this basis of calculation:
Basis of calculation: [ (Basic Salary x 12 months / 365) x (Years of Service x 10/20 days) ]

we have go to Industrial Relations Department, but they advice me go to labor office, but when we go to labor office , they asked us go to industrial relation office.

we are very confuse.

My Question here , i would like get more help from your.

1. we still have need  to work on during the period date (8 Weeks)?

2. companies can retrench & terminated worker during they are on (annual leave)?

3. above the calculation is Rite?

4. if these all is according the Malaysia labor law. can we appeal to get more pay benefit from companies ?

5. As per labor law, retrenchment less than 2 years is 4 weeks , more than 5 yeas is 8 weeks , the retrenchment letter is follow our offer letter ? or follow the labor law?

6. we should go to IR office or labour office?

Please help ? 

regards .

KL Siew
Fri, 21 Nov 2014 05:37:43 PM

1. First, read up the Employment(Termination and Layoff Benefits)Regulations for some info about benefits.

2. The Labour Department only have power to deal with case in which non manual employees with salary not more than RM2000

3. The Industrial Relations Department deals with dismissal cases. To claim termination benefit, the IRD is not the place. If you think the so-called retrenchment is form of unfair dismissal, you can claim reinstatement under Section 20 of the IR Act to get back your job. I think lodging a claim for reinstatement may be a better choice. Consult the IR Department for more details about this reinstatement thing. OR consult a lawyer.

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