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Senior staff without official employment documents

Thu, 25 Feb 2016 08:24:19 AM  (Last updated: Thu, 25 Feb 2016 12:20:29 PM)


I have been appointed to take over a family's business in coming March. Before this, I have been working in the company as operation manager, technical manager and also help to sort out HR matters (with staffs below management department only). It comes to a stage that I have found out that there's a senior worker who has worked for the company over 25 years had manipulate her Rm20k monthly wages for the past few years to two portions, 13k to her name and another 7k to her husband (who she claimed is an outsourced agent). I have question her about this and she said that the boss have verbally approved it. (which the boss also admitted he knew what happened). In this case, I have 4 questions:

1) Can we "terminate" the so-called outsourced agent, who apparently is not working with the company, and force her to accept the full amount? 

2) Or, disagree with the existence of the so-called outsourced agent, and only pay her rm13k? Since there's no written documents to prove that the company is paying her account rm20k?

​3) I have checked that the employee code or employee handbook in our HR department, we have clearly stated in the TERMINATION clause that "services may be terminated by either party giving one month notice in writing or payment in lieu thereof. " What if the company shall terminate her service, what should be the amount of payment to the particular staff ? rm20k or rm13k?

4)She was here before most of the staff, and the handbook wasn't created until 10 years ago, does it have any validation to her? As checked, she has never sign any appointment letter nor confirmation letter since long ago, she happens to be like a personal assistant or a right-hand person to the boss without any official documents nor title. 

Thanks for reading and replies will be appreciated.

KL Siew
Thu, 25 Feb 2016 12:20:29 PM

If you think there is misconduct and you want to terminate her service, it would be better to conduct a domestic inquiry first before deciding what to do. Before you take any action it is advisable for you to consult a lawyer first.

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