RegisterLog In

Unfair Termination

Sun, 31 Dec 2017 12:03:10 PM  (Last updated: Mon, 01 Jan 2018 01:23:27 AM)

I am a company that supplies manpower to oil and gas and construction. Recently I had a company that requested my service of supplying painters for rapid pengerang project. No written agreement was signed between me and "Company A" but verbally agreed of the following terms 1. Rate per hour of the worker (a quotation was sent via email for the rate) 2. Duration of the project which is temporary and will last for a minimum of 4 up to 6 months for the job. We then started the job 1st of November and as instructed by Company A, invoice was submitted to both Company A and Company B (which he says his jv partner) since company B is where the payment would come from. Upon submitting, it was a bit if complications at first, but it was all sorted out by both Company A and B, & company B agrees to pay our invoice as the workers are already working for them at the site. I also submitted a quotation (the same as I send company a) for the workers and I was paid the November claim last Dec 26. When I had thought that everything was in order, I received a call from Company B yesterday, Dec 30, informing me that they no longer need our services and the last day of my worker is also the same day, Dec 30. They claim 2 different reason of termination, 1. The performance of the workers are below expectations and that deadline wasn't met (which by the way was never mentioned either by conpany a or b from the start) and decided to give the job to a different contractor. No notice of poor performance was stated to us or the workers at site. And when i tried disputing it, they claim that 2. Company A has withdrawn himself out of the project therefore they assumed that we should also do the same and go with company a which was the original company i was dealing with. 

Having to say this I see that it is unfair to have terminated our agreement due to the reasons their giving because first, no information about a certain target time was discussed to us until after the target time had passed, and after the target time passed, what they did was to asked me to have the workers go on OT to finish the target on the first location. Which was obligedly done by my workers. And 2, we may have first deal with conpany A but by the conversation we had and was agreed from them, Company B will be the one paying us which i would believe bind us to an agreement i had with conpany a since company a failed to pay us and company b had agreed to accept the terms we had agreed with their jv company B

With this unfair termination and in lieu of proper notice, can my company claim compensation of this incident and help protect my employee by getting proper compensation of this unjust termination? And also, no termination letter has been given to us but we are no longer allowed to work after dec 30. My workers and my company was promised to have a minimum of 4 months job for this project and it's only the 2nd month. With this incident, are we protected under the labor law and be able to get compensation? In addition, the terms of our quotation submitted to both company a&b states that both accommodation and transportation are to be provided by them but none of this was provided immediately, so I had no option but to rent a home for the workers and was promised by Company A that we can claim for it. Transportation was provided only after workers had been working for more than a month and that my company was forced to send a staff to go to pengerang 2 trips a day from our office in Masai  (sending workers at 5am and bringing back the workers home after work hours) and was promised to be compensated of the cost. But Company B refuses to make payments for the transportation and accommodation but they're fully aware that both are part of the terms in our quotation and pushing me to bill company a instead. All I want is to make sure that my workers and my company is properly compensated with the breach of contract of service by both companies. Do you think that we will be protected by labor law and get what is just for us?

Thank you in advance

KL Siew
Mon, 01 Jan 2018 01:23:27 AM

You are a sub contractor for labour who supply workers to do work for other company. In such a case, your workers should initiate the action to make claims, indemnity in lieu of notice,balance of wages, overtime wages etc  against you as their employer. After that you and your employees can go to the Labour Department to make claim against  company A and B and principals.

I would suggest that you personally go to the Labour Department and discuss the issue with officer there first and get his advice about the corect procedure to follow.

  This topic is closed