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Termination of employee due to business closure

Ms Wong
Member
Sat, 17 Nov 2018 11:21:50 AM  (Last updated: Mon, 19 Nov 2018 09:16:35 AM)

My company is a Sdn Bhd registered company. i wish to close down my business.

Can i know the proper process for the employee termination because of my business close down?

How long the termination notice should be given before the last day of work? Some of my employees had been work with the company for more than 20 years. Any termination benefits i should give to my employee?

Thank you

SuharinKL
Contributor
Mon, 19 Nov 2018 09:16:35 AM
Originally posted by Ms Wong on Mon, 19 Nov 2018 09:16:35 AM

My company is a Sdn Bhd registered company. i wish to close down my business.

Can i know the proper process for the employee termination because of my business close down?

How long the termination notice should be given before the last day of work? Some of my employees had been work with the company for more than 20 years. Any termination benefits i should give to my employee?

Thank you

Hai there,

The followings are my opinion:

1) The Company need to give the employees the ample notice regarding the closure;

2) At the end of the above notice, the Company need to pay the employees the in lieu of notice if the termination is being done immediately or to give notice of termination based on the agreed termination clause in their respective employment contract. 

3) The Company need to pay the termination benefit as determined under Employment Act to those employees covered under the said Act. As to those not covered, the Company may provide ex gratia payment based on the same calculation under employment Act. 

Regards,

suharinsulaiman@gmail.com