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Register a company during Employment

Fri, 08 Apr 2016 05:11:13 PM  (Last updated: Tue, 12 Apr 2016 09:07:56 AM)

Dear Sir,

Can an employee register a new company with similar nature of business during his or her current employment when there were no any sort of employment agreement with the current employer.

KL Siew
Sat, 09 Apr 2016 08:42:27 AM

I don't see why one cannot set up a company to do business.

Tue, 12 Apr 2016 12:04:57 AM
Originally posted by KL Siew on Sat, 09 Apr 2016 08:42:27 AM

I don't see why one cannot set up a company to do business.

I've been engaged with a company for 8 yrs as a 3D trainer. As Im one of a handful certified trainer various stream in Malaysia, i bring value to the company. After 8 yrs my basic was only 2.4K the management refused for increment. However verbally he told us ( me and my 3 other colleagues ) to find alternative solutions and he also advised that if we ever plan to leave make sure we are a boss.

I and one of my other colleague setup a Sdn Bhd company ( no salary was withdrawn ) to provide 3D service and freelance jobs however we have also included "Training" in the nature of business in SSM for future purpose. During my employment as a trainer I have never conducted any other training elsewhere. Any training request that i had received Ive passed it to my boss.

End of 2014 Ive requested for increment else settle my outstanding balance ( which was about 10K++ ) as I want to leave. My current partner who was also my colleague then had resigned 3 month before that. My boss told me he will work it out but unfortunately there came an argument with my colleague due to his payment not settled and my boss.

On the next day 5th of Jan 2015 my boss called me out of the office ( the lock smith was there to change the lock ) and gave me a show cause letter accusing me for setting up a company while attached with his company and associating with an ex-colleague. My things were still in there but he refused to let me in. He told me will send it to me but he did not.

1.There was no any kind of employment agreement.

2.I have not signed any document

3.No warning letter given.

4.No enquiries/domestic investigation conducted
5.My salary was not paid during suspension ( he sent a 4 month Basic salary check only after sending me a termination letter )  

6.He did not settle my outstanding payments he owe me since 2012.

All this while he was ok with it now he is accusing me for setting up a company with similar/same nature of business while still employed under his company.

Associating with an ex colleague ( who he had an argument for not settling outstanding payment )

My Case had been referred to Industrial court and the hearing is on the 14th March 2016. His lawyer agreed to a settlement in from of the magistrate by 14th April 2016 but now they want to carry on with the case. So the next hearing will be 14th April 2016.

Kindly advice Is there a law that we cant be a share holder or own a company with a similar nature of business if we work for someone else especially when there is no agreement.

Long Story.

TQ in advance

KL Siew
Tue, 12 Apr 2016 09:07:56 AM

What you can do is to engage a lawyer about your rights to set up a company.

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