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Termination of employment

Birdy
Member
Mon, 13 May 2019 09:30:13 AM  (Last updated: Mon, 20 May 2019 02:26:37 PM)

Hi Siew,

One of the employee who has worked for over 25 years is underperforming and constantly making careless mistakes. The employee is also retiring in another 2 years time. Unfortunately, there wasn't any written warning or performance showcause given all these while.

In consideration of the loyalty, the company wants to adequately compensate her as if was retrenched although no retrencement exercise is undergoing (note : the company doesn not practice giving any retirement benefits for retire employee).  The company doens't want to opt for 'cruel' treatment to eventually make the employee to leave on own accord. The company just want amicably to let the staff go and move on as usual. 

Is it rightful for the company to do so? If not, what option can the company go with for a happy ending? 

Looking forward to ideas and advise. 

Thank you

Regards,
Birdy

KL Siew
Administrator
Mon, 13 May 2019 10:59:35 AM

Employers must pay termination benefits for termination of service. Refer to the Employment(Termination and Layoff Benefits)Regulations about payment of retrenchment benefits. You can also consult the Labour Department for further details.

Birdy
Member
Fri, 17 May 2019 10:48:09 AM

Hi Siew,


I am aware of retrenchment benefits. However, can we adopt layoff or retrenchment exercise if the department still operating as normal (ie. only terminate 1 of the staff, while the department still carry on as usual). Will this gave rise to the risk that the employee may complain about unlawful dismissal? 

We are prepared to compensate the staff adequately even to follow the retrenchment benefits compensation. 

Please advise. 

Thank you.

KL Siew
Administrator
Fri, 17 May 2019 01:33:40 PM

Have a discussion with him about the company's intention and offer of compensation and get an amicable settlement of the matter.

Birdy
Member
Mon, 20 May 2019 02:18:31 PM
Originally posted by KL Siew on Fri, 17 May 2019 01:33:40 PM

Have a discussion with him about the company's intention and offer of compensation and get an amicable settlement of the matter.

Hi Siew,


Let's say this person is stubborn or reluctant to accept compensation. What can a company do if we don't want to take the road of 'cruel' treatment such as finding fault in the employee? Does labour law allow an employer to terminate under-performed staff legally? 

Thank you.

KL Siew
Administrator
Mon, 20 May 2019 02:26:37 PM

You can do whatever you think you need to do. There is nothing much you can do about it if he is not keen to settle matter amicably. Let him take whatever action he wants and you can deal with it when the time comes.

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