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One month notice indeminity calculation for a temporary 1 year contract and permanent contract

Ar
Member
Thu, 13 Aug 2015 10:55:57 PM  (Last updated: Sun, 16 Aug 2015 03:10:09 PM)

Hi, Mr Siew,

Questions A:

One month notice.  Basic salary is RM1500. permanent contract. If the employee resign without 1 month notice. So is it the employee shall pay back to the employer RM1500?

Questions B:

1 year temporary contract (01 July 2014 -  30 July 2015). Basic salary is RM1500. If the employee resign without 1 month notice on 30 June 2015 . So is it the employee shall pay back the RM1500?

Questions C:

1 year temporary contract ( 01 July 2014 - 30 July 2015). Basic salary is RM1500. If the employee resign with 1 month notice on 30 June 2015. So the employee has 2 choices: No. 1, serve until 30 July 2015. No. 2, serve until 30 July 2015 but can deduct with accumulated not yet clear annual leave?

I enquiry this questions as I think that I should gain more local labour information first before I become the future employer.  So, when the employee resign without notice but I don want to hold their salary.

Thank you.

KL Siew
Administrator
Fri, 14 Aug 2015 08:59:09 AM

Part 12 of the Employment Act may be of some help to you. Note the words in bold letters in Section 11 of the Act quoted below. So, it looks like should give at least 4 weeks notice or indemnity in lieu. Confirm it with the local Labour Office.

Provision as to termination of contracts

11. (1) A contract of service for a specified period of time or for the performance of a specified piece of work shall, unless otherwise terminated in accordance with this Part, terminate when the period of time for which such contract was made has expired or when the piece of work specified in such contract has been completed.

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