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Resignation & Compensation

ML
Member
Mon, 07 Sep 2015 04:09:48 PM  (Last updated: Tue, 22 Sep 2015 05:14:09 PM)

Hi,

Senario 1:-

If staff join on 01.04.2015 and confirmation on July'15.

Tender letter on 28.08.2015 with one month notice and last by end of sept 2015.

But the problem is appointment letter and confirmation letter stated resignation with 3 months written notice.

In this case,can we hold his August salary + compensation for the balance month  ?

Thanks!

KL Siew
Administrator
Mon, 07 Sep 2015 04:53:29 PM

Yes, it can be done that way. Let the employee concerned know about it.

ML
Member
Tue, 08 Sep 2015 10:55:38 AM
Originally posted by KL Siew on Mon, 07 Sep 2015 04:53:29 PM

Yes, it can be done that way. Let the employee concerned know about it.

Hi KL Siew,

If case happening , epf & socso contribution still need to proceed or cancel accordingly?

Thanks!

KL Siew
Administrator
Tue, 08 Sep 2015 12:03:25 PM

Since you are using the salary as indemnity, I think it is not necessary to deduct EPF and SOCSO. If you do, the salary may not be enough for the indemnity in lieu of notice. However, since you are asking about EPF and SOCSO matters, it would be better for you to consult those offices and get their official views and confirmation.

ML
Member
Tue, 08 Sep 2015 01:52:36 PM
Originally posted by KL Siew on Tue, 08 Sep 2015 12:03:25 PM

Since you are using the salary as indemnity, I think it is not necessary to deduct EPF and SOCSO. If you do, the salary may not be enough for the indemnity in lieu of notice. However, since you are asking about EPF and SOCSO matters, it would be better for you to consult those offices and get their official views and confirmation.

if staff breach the agreement ,company reserve right to send warning letter or demand letter from lawyer to get back the compensation ?

Or any good advice to solve this issue?

KL Siew
Administrator
Tue, 08 Sep 2015 03:49:56 PM

Yes, you have the right to do so.

ML
Member
Tue, 22 Sep 2015 11:44:53 AM

Hi ,

We have write for the staff against th compensation and received reply from the staff saying that according to the contract , company termination staff for one month notice at the same time ,staff tender resign period with one month notice too .

Please help see our contract as below , is it against labour law's rules?

Thank you!

8.                 Termination of Service

8.1              Employee is required to give a written notice of service termination of at least 3 month in advance.

Company reserves the right to retain, confiscate or demand compensation of 1 month equivalent of basic salary upon breach of any service agreement.

Company may terminate your service in written notice of 1 month in advance without any    compensation or immediate termination with compensation of 1-month basic salary.
If you are found guilty of any serious misconduct or non-observance of the terms herein set out or fail or refuse to carry out the duties assigned to you, management have the right to terminate your employment without any payment in lieu of notice and without being liable thereof.
Any information, data, methods, inventions and contacts developed in the course of business   remains the sole right and property of the company.
All information, property must be satisfactory hand over to the replacement or other colleagues as the management deem fit.

KL Siew
Administrator
Tue, 22 Sep 2015 12:19:27 PM

You mean to say when the staff wants to terminate his service with the company he must give 3 months notice and if the company wants to terminate his service, the company must give only 1 month notice?

If it is true, that will go against Section 12(2) of the EA:

"12(2) The length of such notice shall be the same for both employer and employee and shall be determined by a provision made in writing for such notice in the terms of the contract of service, or, in the absence of such provision in writing, shall not be less than— ....."

ML
Member
Tue, 22 Sep 2015 05:14:09 PM

Hi ,

In this case , if follow labour law , we only can claim back as below:-

Salary August'15=On Hold By Company (Calculation base on 01.08.2015-31.08.2015)

Tender 28/08/2015 and last day on 07.09.2015.

So ,may i know the calculation for the remuneration which is staff need to compensate ?

Petrol Allowance Claim for August'15 ,do we still need to give to the staff ,can contra with the compensate ?

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