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Transfer of department due to redundancy after merger of companies

Sunny KM
Member
Tue, 13 Mar 2018 11:40:17 AM  (Last updated: Thu, 15 Mar 2018 09:16:30 AM)

Hi Sir/Madam,

1. Can we transfer few employees from Department A to other Departments due to manpower redundancy in Department A after the merger of 2 companies ?

2. If the employees do not accept the transfer offer (with same benefit package, but lower position rank), can we ask the employees to submit their resignation letter?

*Transfer Clause is stated in Employment Manual 

Please advise. thanks.

Regards,
Sunny

KL Siew
Administrator
Tue, 13 Mar 2018 03:19:16 PM

I don't see any reason why he should resign and I don't see they will accept lower rank. In fact the company should consider paying termination and layoff benefits since it is a redundancy. I think you should consult the Labour Department and get official advice what exactly you should do.

Sunny KM
Member
Tue, 13 Mar 2018 03:59:39 PM

Thanks Mr. KL Siew,

May i know if the company can terminate the employees who do not accept the transfer arrangement (without giving them the termination benefit) ? as the transfer clause is stated in their employment contract. Can the Employment Act be overridden by the employment contract?

thanks.

KL Siew
Administrator
Tue, 13 Mar 2018 06:50:12 PM

But they will be holding lower position. Anyway, I think you should pay a visit to the Labour Department and discuss with the officer and get something official.

Gon
Contributor
Thu, 15 Mar 2018 09:16:30 AM

Labour law > all employment contract

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