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Jeffrey Ng  
Fri, 03 Oct 2008 03:49:01 PM  (Last updated: Mon, 03 Nov 2008 04:58:21 PM)

Dear Mr. Siew,

I am holding a managerial post and working with a Korean based muti-national company for a number of years.

Today, 3rd Oct 2008, the company made an announcement of the representative office's closure as it is relocating its business operations elsewhere to a neighboring country.

Meanwhile, all staff members have been duly informed of the same and that the said closure will be in effect 2 months from now due end December 2008. In light of this, the company has agreed to compensate all employees prior to the actual relocation in accordance with EA 1955.

Here are the questions:

1. EA 1995, pertaining to the retrenchement exercise, what does it stipulate?

2. What is the minimum requirements a company must follow in terms of monetary compensation as stipulated in EA 1955?

3. What is the formula to calculate the retrenchment benefits in terms of monetary rewards as compensation?

4. If we do not agree to the retrenchment benefits offered by the company, is there any avenue for one to seek relevant authority to mediate the dispute?

Your earliest reply is utmost appreciated.


KL Siew
Fri, 03 Oct 2008 04:37:48 PM

First, familiarize yourself with the Employment(Termination and Layoff Benefits) Regulations. You can use this link to get it You can get all the details there.

After this, pay a visit to the Labour Department and talk to one of the senior officers for proper official guidance and what exactly you must do under the law

Jeffrey Ng
Wed, 08 Oct 2008 11:59:08 AM

Dear Mr. Siew,

After the retrenchment exercise completed and closure done, if the regional office has been relocated to Thailand and start operating there, can this new regional office appoint one of the local retrenched staff who will be recruited through another affiliated/sister company in Malaysia to maintain or take care of some existing business accounts or customers in Malaysia?

Can other retrenched staff who later came to know about this kind of arrangement feeling disatisfied sue the former company?

Looking forward to your soonest reply.

Maznah Abdullah
Mon, 03 Nov 2008 04:57:57 PM

I am currently working with an Insurance company and has just been offerred VSS by the company. As what I understand VSS is where the co offer the staff and if the staff agrees then the VSS is concluded. What is happening to us is that several staff has been identified to be terminated but the offer of VSS is made company wide. The identified ones are encouraged to accept the VSS(although unwillingly) while those who are interested but are not identified are requested not to submit their application. It apppears to me as if this MSS. Our date of acceptance has expired and pending the approval by the company. What can we do?

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