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Effect of hire-purchase agreements on employees

Fri, 01 Jun 2007 10:44:06 AM  (Last updated: Fri, 01 Jun 2007 01:39:00 PM)

I have been working with my company for 7 month and now my company will be sell to another company in this june. In their S&P agreement, i will be absorb into the new company. Today i have receive a termination letter from my company before the new offer letter arrive. My company force us to sign it or else the offer letter from the new company will not be deliver. Should we sign? Moreover, in the termination letter, there is no statement state that the company will compensate us any wages. All of my colleagues were not being pay of lay-off benefit because our CA did not state so? Is that fair?

KL Siew
Fri, 01 Jun 2007 01:39:00 PM

I think you better accept the offer and please read Regulation 8 of the Employment(Termination and lay-off benefits)Regulations 1980 quoted below:

"8. (1) Where a change occurs (whether by virtue of a sale or other disposition or by operation of law) in the ownership of the business for the purposes of which an employee is employed or of part of such business, the employee shall not be entitled to any termination benefits payable under these Regulations, if within seven days of the change of ownershi

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