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Letter Offer silent on "payment in lieu of notice"

ALIF IMRAN
Member
Fri, 06 Dec 2019 12:07:50 PM  (Last updated: Sat, 07 Dec 2019 01:10:23 PM)

Hello. I have a few questions as below:

1. My case at hand involves employees with wages above RM2000. Does that mean Employment Act is not applicable to my case? Is there any legal standpoint saying that I can use the Act?

2. Pursuant to question above, the Letter Offer is silent on "payment in lieu of notice". It only provide the period of notice to be given by either party i.e 2 months/4 weeks. Can either party pay in lieu of notice despite the absence of the clause in the letter offer? I'm aware of Section 13(2) of EA said it can be done, but since the wages is above RM2000, can it be done?

Thank you in advance.

KL Siew
Administrator
Sat, 07 Dec 2019 01:10:23 PM

Although that clause did not mentioned payment of indemnity in lieu of notice, it did not say no need to pay indemnity. If one party failed to give the required notice, the party could still claim indemnity in lieu from the other party. It does not mean you don't have to pay anything if you don't give any notice at all and walk away.
 

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