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Cost cutting - Reduced working days by forcing employee utilise Annual Leave and deduct salaries once leave exhausted

MSE
Member
Tue, 16 Feb 2016 04:56:09 PM  (Last updated: Wed, 17 Feb 2016 05:43:51 PM)

Hi,

Due to current economic scenarios, many companies are looking for ways to save cost. 

My question as above, is it lawful to exercise the above with only issuing memo to all employees?

Should employees been told about company's initiative to save cost before coming to the above solution?

TQ in advance!

MSE
Member
Wed, 17 Feb 2016 09:44:50 AM
Originally posted by MSE on Wed, 17 Feb 2016 05:43:51 PM

Hi,

Due to current economic scenarios, many companies are looking for ways to save cost. 

My question as above, is it lawful to exercise the above with only issuing memo to all employees?

Should employees been told about company's initiative to save cost before coming to the above solution?

TQ in advance!

Any IR specialist can throw their comments?

KL Siew
Administrator
Wed, 17 Feb 2016 05:08:21 PM

Yes, should discuss the situation with the employees first in order to come to some sort of understanding as to how to go about it.

MSE
Member
Wed, 17 Feb 2016 05:24:02 PM

Yes agreed. But from legal perspective, is it lawful to simply sending out memo on the new changes and policy?

By reducing operation days was already being taken as part of company's initiative to save cost, why must ask employees to use their AL entitlement? 4 days a month x 12 months in a year already 48 days which is way beyond normal entitlement.

Perhaps company can start planning on proper downsizing measures and compensate affected employees properly rather than take short cuts just to keep the numbers green.

my 2 cents

KL Siew
Administrator
Wed, 17 Feb 2016 05:43:51 PM

It looks like there are disputes in the matter. Pay a visit to the local Industrial Relations Department and discuss the issues with the officer there see whether he can help to sort out the problems amicably by the parties.

  This topic is closed