Yes

TERMINATION OF EMPLOYEE DUE TO BUSINESS CLOSURE

One of my friend had closed down a business 4 months ago. Before that, he had given 1 1/2 months notice to the workers and he also had given 3 months compensation to the workers before their termination. When the workers received the compensation, they have signed on the compensation receipt.

However, after 4 months of closing down, one of the worker (with Basic Salary RM 1900, serving years > 10 years) came back to my friend and claiming for more compensation. He told that he had checked with labour dept. and the amount of compensation should be around RM 20,000 ++ (20 days x ?? years). Is this request valid for employee with basic salary > RM 1500? Somemore, he had agreed with the compensation amount since 4 months ago. Can he complaint to IR and what is his chance of success? What is the correct compensation amount to this employee actually by employment law and industrial relation law?

Kindly advise. urgent...

Thank you.

Jane

Don't accept his demand first. Let him complain to the IR and your friend can settle the matter at the IR Department. I can't speculate his chances of success.

after hold the salary can i issue a letter saying that the 3/09 salary net off with the 1 month paymt in liue.so we no need to pay for the 3/09 salary??

Yes, employer can hold employee salary for a period of 3 months.

Since the employee walk out 24 hours, as per your employee agreement, you can deduct his/her salary according for notice served.