The company’s financial situation has not recover since the MCO, and it can no longer sustain itself in the near future, so it plans to lay off employees. Then, according to Malaysia’s labor laws, how much compensation should a veteran employee who has work for 3 years receive?
Conditions for dismissal of employees
In Malaysia, employers are not allow to fire employees at will. The decision must be bas on detail purposes and criteria. In other USA Phone Number List words, you must be able to explain why the employee’s services are no longer requir. The same principle applies if you wish to retain an employee.
These standards are bas on the Code of Conduct for Industrial Harmony, an agreement between the Ministry of Human Resources, the Malaysian Trades Union Congress and the Council of Malaysian Employers Organisations. These codes provide comprehensive guidance that all employers must follow.
According to Section of the Employment
Employees with less than 2 years of continuous service are entitl to 10 days’ salary each year.
Employees with continuous service between 2 and 5 years are entitl to 15 days’ salary each year.
Employees who have serv Afghanistan Phone Number List continuously for 5 years or more can receive 20 days’ salary each year.
For employment periods of less than one year, the rate is calculat to the nearest month.
The following employees are not eligible for termination benefits:
The employee has reach the retirement age specifi in his/her service contract.
An employee is fir by his employer for inappropriate behavior.
The employee resign voluntarily.
The employee must have work for the company continuously for at least 12 months.
Employees with a salary exceing RM4,000: The following provisions do not apply to employees with a salary exceing RM4,000:
Article 60(3): Overtime pay on rest days
Section 60A(3): Overtime pay for work done outside normal working hours
Section 60C(2A): Shift Work Allowance
Section 60D(3): Overtime work and allowances on public holidays.
