ACCA F4 MYS Variant - Employment Act

7/31/2019 ACCA F4 MYS Variant - Employment Act

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What is contract of service?1.

A contract between an employer and an employee, whereby the employee agrees to work

for the employer.

-

S2 EA1955 c.o.s defines2.

Any agreement, whether made orally or in written, expressed or implied, whereby one

person agrees to employ another as his employee and that other agrees to serve his

employer as employee and includes an apprentice contract.

-

Therefore, a contract doesnt necessary needs to be in writing.-

S10(1) a contract of service for a specified period of time exceeding one month; or for a

specific piece of work where the time reasonably required to for completion of the work

exceeds or may exceed one month shall be in writing

3.

Industrial Relations Act 1967 defines contract of employement:4.

Any agreement whether made orally or writing, expressed or implied, whereby one

person agrees to employ the other as his workman, and the other agrees to serve his

employer as a workman.

-

It is generally accepted that there are no distinction btwn the 2 (EA 1955 & IRA 1967)

phrases

Therefore only a c.o.s will give rise to a employer/employee r/s; which is regulated by the

EA & IRA.

An em-er&em-ee r/s must exist before an employer is made vicariously liable for the

negligent acts of his employee done in the course of his employment. ( Vicariously: Acting

or serving in place of someone or something else; substituted.)

Contract of service

Contract 4 service

Does not cr8 em-er/em-ee r/s.1.Therefore, does not come under the purview of the EA1955&IRA19672.

Term used are usually principal & independent contractor3.

Principal is not liable for the torts committed by the independent contractor.4.

There are certain exceptions to this strict rule.5.

Test Determining Contract of Service

Courts developed 3 main tests:1.

Control testa.

Integration testb.

Multiple testc.

Control testA.

extend of control and employer had over and employee in relation to the

manner in which the em-ee was to do his work.

-

The greater the control, the greater the possibility there was a c.o.s-

Control test has been seen as inadequate, esp. in occupations of a

skilled/professional nature.

-

Integration testB.

extend to which a person can be considered as part & parcel of the org.-

The greater the integration, the greater the possibility there is a c.o.s.-

This test is not much used today. Hence question asked is whether the work done

has been fully integrated into the biz?

-

Why is it important to distinguish c.o.s&c.4.s

Multiple testC.

Takes into account multiple considerations to

determine

Does not rely only one single factor

Nature of task

Degree of skill required

Amount of freedom of action given

Who gives the orders and nature of the orders

Who has the power to hire and fire

Who provides the equipment

The amount of payment and the manner of

payment

They are:

Contract of service / Contract for serviceSunday, 23 September, 2012

1:49 PM

Employment Act Page 1


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DUTIES OF AN EMPLOYER (5)

Payment of wages1.

Provision of work - certain contracts where the opportunity of work is of the essence, the

right to work should be implied into the contract. Ie. Actor, salesman;

2.

Further if the em-ee is paid by commission (wholly / partly) the em-er should provide work

to enable the em-ee to earn the commission

Selection of competent staff and proper supervisiona.

Provide proper/safe machinery for workb.

Provide a safe means of access to workc.

Provide an overall safe system with reasonable cared.

Provision of a safe system - generally, em-er has a duty of care for the safety of his em-ees.

This duty includes :

3.

Indemnity - employer must indemnify em-ees against all liabilities and expenses incurred in

the performance of their duties

4.

Defamatory against em-ee : the em-ee can bring an action in defamationa.

Ref is better than the em-ee is entitled - may be sue under tort of deceitb.

Ref is given negligently, where em-ee is not worthy to receive one - liability of

negligence may arise.

c.

Reference - Generally, it's not compulsory for an em-er to provide reference for their em-

ees. But if they do, it must be truthful. If false, em-er will be liable in several ways :-

5.

DUTIES OF AN EMPLOYEE

To act reasonably and co-operate - the performance of their duties must not disrupt the

smooth running of the organization

1.

The em-ee may not delegate the performance of his duties to other person (unless given

the permission ; expressed or implied )

2.

Lawfula.within the scope of cosb.

Reasonablec.

Does not place them in personal danger.d.

Obedience - em-ee must obey the orders given by their em-er provided that it is:-3.

No bribesa.

Disclose secret profits or interest received in the course of employment to avoid

conflict of interest

b.

Not to divert customers' away from em-er's businessc.

Good faith and loyalty -4.

Access to inventions - duty to make available any product invented by him in the course ofhis employment. Applies when the em-ee uses the tools and machinery of the em-er, and

receives proper funding from the em-er

5.

Reasonable care - em-ee must display due care in the performance of his duty6.

Indemnify - to protect against

Wages, provision of work & a safe system, indemnity, reference

Act reasonably & co-operate, may not delegate his duties, obedience, goodfaith,

access to inventions, reasonable care

Basic DutiesThursday, 25 October, 2012

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What is wages?1.

S.2 of the Employment Act 1955 to mean basic wages and all other payments in cash payable

to an employee for work done in respect of his contract of service but does not include the

following:

value of accommodation, or the supply of food, fuel, light, water, medical attendance,

amenity, or service

a.

employers contribution to pension fund, provident fund, superannuation scheme,

retrenchment, termination, lay-off or retirement scheme, thrift scheme, or any other

fund/scheme for the employees welfare;

b.

sum payable to the employee to defray special expenses incurred by nature of his

employment;

c.

travelling allowances or value of travelling concessions;d.

gratuity upon discharge or retirement; ande.

annual bonus.f.

Legal tender - medium of payment allowed by law ie.paper currency and coinsa.

Bank - with em-ees written consent; entire payment is to be credited into a bank

account/a finance co. registered under the Finance Companies Act 1969 in any part of

Msia, provided that it's under the name of em-ee or an account in the name of the em-ee

jointly operated with other person(s). Such method can be withdrawn at anytime as long

there is a written notice (4weeks in advance).

b.

Payment by cheque - made payable to em-ee or to the order of the em-eec.

Modes of payment of wages:-2.

A cos shall specify a wage period not exceeding 1 month ( if not stated, then it'll be

assumed to be one month )

a.

Contract is deemed broken by employer if he fails to pay wages not later than the 7th day

after the wage period. If cos is terminated without notice, wages shall be paid within 3

days from the day of such termination. If it's with notice, wages must be paid by the end

of notice period.

b.

If employment is dismissed/cos terminated by em-er, then total wages (less lawfuldeductions) must be paid on his last day of employment

c.

Wages is not payable during the period when em-ee is imprisoned/attending to a court

(unless as a witness on em-er's behalf)

d.

Overpayment of wages made within 3 months of the mistakei.

Indemnity due to the em-er by the em-eeii.

Recovery of advancesiii.

Authorized by written law ie.socso, epf, pcbiv.

Upon em-ee's request (trade union, esos, payments to 3rd party, rental of

accommodation provided by em-er)

v.

No deduction of wages can be made other than:e.

Indemnityi.

Unpaid amount of money due to termination of cosii.

Repayment of housing loaniii.

Deduction shall not exceed 50% of the em-ee monthly wages unless for:f.

Wage period - the period in respect of which wages earned by an employee are payable3.

Wages, Advances, Unfavorable term, Trade Union, Hours of work,

Holidays, Rest Days, Overtime Work, Annual Leave, Maternity Leave,

Probation period, Sick leave, Employment of women,

Increment/BonusThursday, 25 October, 2012

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Wages has priority over other debtsg.

ADVANCES

to enable him to purchase a house or to build or improve a house;a.

To purchase land;b.

to enable him to purchase livestock;c.

to enable him to purchase a motorcar, a motorcycle or a bicycle;d.

for any other purpose:e.

(i) in respect of which an application in writing is made by the employer to the Director

General;

(ii) which is, in the opinion of the Director General, beneficial to the employee; and

(iii) which is approved in writing by the Director General, provided that in granting such

approval, the Director General may make such modifications thereto or impose suchconditions thereon as he may deem proper;

(5) for such other purpose as the Minister may, from time to time, by notification in the

Gazette, specify either generally in respect of all employees, or only in respect of any

particular employee, or any class, category or description of employees.

Advances granted to an em-ee shall not exceed his one month's wages. Exceptions:-1.

TRADE UNION

An employer cannot restrict an employee from being involved in a trade union or trade union-

related activities. This is provided for in s.8 as follows:

1.

Nothing in any contract of service shall in any manner restrict the right of any employee who is a

party to such contract:

to join a registered trade union;a.

to participate in the activities of a registered trade union, whether as an officer of such

union or otherwise; or

b.

to associate with any other persons for the purpose of organising a trade union in

accordance with the Trade Unions Act 1959.

c.

UNFAVOURABLE TERMS

In a COS, any less favourable than the terms stipulated in the EA1955 are null and void.1.

A COS however may contain term which are more favorable to an em-ee than the terms

specified in the EA1955

2.

HOURS OF WORK

Every employee shall be allowed in each week a rest day of 1 whole day.1.

Employee who required to work during his rest day should be double paid.2.

more than 5 consecutive hours without a period of leisure of not less than 30 minutesa.more than 8 hours in one dayb.

in excess of a spread over period of 10 hours in one dayc.

more than 48 hours in one weekd.

An employee cannot be required to work:3.



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An em-ee who's engaged in work which must be carried on continuously and requires his

continuous attendance for 8 consecutive hrs ; with a condition that he has period(s) of 45 mins

opportunity to have a meal

a.

An em-ee can be req to work more than 8hrs if the num of hrs on 1/more days of the week is

less than 8. However they are still not allowed to work more than 9 hrs a day or 48 hrs in one

week

b.

Em-ee who is engaged in shift work may be req to work more than 8hrs in one day/48 hrs in a

week but the avrg num of hrs work over any period of 3 weeks shall not exceed 48 hrs per

week

c.

Accident , actual or threatened happened at place of workd.

Work , where the performance of it is essential to the life of the communitye.

Urgent work to be done to machinery / plantf.

An interruption of work which was impossible to foreseeg.

Work the be performed by em-ees in any industrial undertaking essential to the economy of

Msia in the IRA1967

h.

Exceptions to the above (3) is allowed when :-4.

PUBLIC HOLIDAYS

Employee shall be entitled to a paid holiday at his ordinary rate of pay on 10 gazetted public

holidays in any one calendar year, including:

1.

the National Day

the Birthday of the Yang di-Pertuan Agong

the Birthday of the Sultan/Head of State

the Workers' Day

The remaining 6 other gazetted p.hols is up to the discretion of the employer. However, these

chosen holidays must be specified in the form of notice to all em-ees and displayed at the place of

employment before the commencement of each calendar year.

2.

Special holiday not gazetted but announced by the ahjibkor (PM), Sultan are not obligatory by the

em-ers.

3.

If an em-ee is req to work on any paid holiday, the employee shall be paid two days wages at the

ordinary rate of pay; piece rates shall be paid twice the ordinary rate per piece.

4.

For OT work carried on holidays, em-ee shall be paid at a rate which is not less than 3 times his

hourly rate of pay

5.

REST DAYS

Every em-ee shall be allowed in each week minimum a rest day1.

En em-er can make an arrangement for substitution of rest days, he however must prepare a roster

before the commencement of the month in which the rest days fall. He has to inform the em-ee of

the days scheduled as their rest days.

2.

He is engaged in such a work which by reason of its nature is required to be carried out

continuously or continually by 2 /more shifts.

a.

Accident , actual or threatened happened at place of workb.

Work , where the performance of it is essential to the life of the communityc.

Urgent work to be done to machinery / plantd.

An interruption of work which was impossible to foreseee.

Work the be performed by em-ees in any industrial undertaking essential to the economy ofMsia in the IRA1967

f.

An em-ee shall not be compelled to work on a rest day unless:-3.

OVERTIME WORK



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Overtime is defined as the no. of hrs in excess of the normal hours of work per day.1.

For any overtime work carried out in excess of the normal hours of work, the employee shall be

paid at a rate not less than 1.5 times his hourly rate of pay

2.

Overtime limit prescribed is 104 hrs per month3.

ANNUAL LEAVE

An employee is entitled to the following no of annual leave :4.

No of years of service with the same employer Annual Leave (no of days)

>1 yr ; 2 yrs; 5yrs 16

Annual leave does not include rest days and gazetted holidays5.

At the request of the employer and within the em-ee's written consent, untaken annual leave may

be substituted for payment

6.

If the employee resign, he is entitles to a proportionate paid annual leave. The em-ee may also usethe balance of his annual leave to offset the whole or part of the req. notice period.

7.

SICK LEAVE

He has obtained a MC from a registered practitionera.

He has obtained a cert from a dental surgeonb.

If he has informed/attempted to inform the employer of his sick leave within 48 hrs of the

commencement of the sickness.

c.

An em-ee is entitled to paid sick leave only :-1.

No of days of paid sick leave entitled to an employee in each calendar year is : -2.

Length of service No of days

2; 5 yrs 22

If hospitalization is necessary, sick leave can be extended to 60days per cy3.

ANNUAL INCREMENTS, BONUS, PROMOTIONS

Em-ee are entitled to annual increments. Em-er may withhold such increments by way of

punishment for misconduct but nor on the grounds of inefficiency

4.

Bonus is a gratuitous payment depending on the yearly performance of an individual co.5.

Contractual bonus is a form of deferred salary and the amount is duly fixed. It has to be paid to the

em-ee regardless whether the co. is making profit or not. It is part of the definition of wages

6.

Promotions among em-ee have become prerogatives of the em-ers. Such prerogatives are

exclusively maintained by the em-ers

7.

EMPLOYMENT OF WOMEN

No female em-ee is allowed to work in any industrial or agricultural venture between 10pm - 5am1.

No female em-ee shall commence work without having had a period of 11 consecutive hrs free

from work

2.

Gratuitous - Given or received without cost or obligations

Prerogative = An exclusive right or privilege



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No female is allowed to be employed in any underground working3.

Any female employed under public service vehicles regulations 1952 may work btwn the hrs 10pm

to 1 am of the following day. Notwithstanding the female em-ess are not allowed to work from

1am to 5am.

4.

MATERNITY LEAVE AND ALLOWANCE

A female em-ee is entitled to at least 60 consecutive days of paid maternity leave.1.

If PH falls on maternity leave, no additional off day will be given. (meaning includes rest days and

ph)

2.

An em-ee is entitled up to 30 days before confinement and 30 days of after confinement of paid

maternity leave.

3.

Wages during paid maternity leave is calculated ad the ordinary rate of pay or at the rate of 6.00

/day; whichever is greater.

4.

If the em-ee dies during her maternity leave her nominee or her legal personal rep will received the

maternity leave allowance up to the date of her death

5.

The em-ee cannot be terminated during her maternity leave. It's regarded as a criminal offence if

the em-er do so.

6.

If after the expiry of her 60days maternity leave, she is still absent from work due to medically unfitfor work, she cannot be terminated until she exceeds 90 days after end of her maternity leave

7.

EMPLOYEES ON PROBATION

Em-ee may have to go through a period of probation as skill and qualification alone is not enough

to measure whether the em-ee is suitable for the job he is engaged to

1.

In a COS , it's common to find a clause in the contract like "during the probationary period, either

party may at any time terminate the COS w/o notice. "

2.

Training in the job the em-ee suppose to doa.

After due training, if he is not able to perform the em-er must verbally warn him, and then in

writing or extension of the probationary period if problem still persist

b.

If no improvement, he /she must be told to do when probationary period expiresc.

A probationer may seek redress from wrongful dismissal if hs feels that he is terminated w.o

just/cause

d.

Em-ee on probation period enjoys the same rights as permanent em-eee.

A probationer who receives no confirmation after the probationary priod is still a probationer.

However, if he is given a salary increment, he has a strong case that the employer is satisfies

with his performance and considered as confirm

f.

However, employers must before terminating the employee provide : -3.



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S11(1) - A c.o.s. for a specified period of time or specified piece of work will terminate at

the end of the specified time or completion of the piece of work

1.

2 types of terminations2.

With notice-W/o notice-

Termination with notice3.

S12(1) - Either party to a contract may terminate the contract by giving notice of his

intention to terminate the contract

a.

4 weeks - if the em-ee has less than 2 yrs of service(a)

6 weeks - if the em-ee has >2 but less than 5 yrs of service(b)

8 weeks - if the em-ee has >5 yrs of service(c)

S12(2) - The length of notice shall depend on the contract. If the contract does not

provide for it, the notice shall not be lesser than :

b.

If the termination is due mainly to the circumstances laid down in s12(3), employee must

not given lesser than the notice stipulated above, notwithstanding ( ignoring the

contract ) anything to the contrary in the c.o.s.

c.

S12(3) - Redundancy may say to occur un the circumstances mentioned in S12(3) (a) - (f)

of the EA1955:

4.

The employer has ceased or intend to cease to carry on the business for the purposes of

which the employee was employed

a.

The employer has . Business in the place at which the employee was contracted to

work

b.

The req of that biz for the em-ee to carry out work of a particular kind have ceased or

diminished or expected to cease /diminish

c.

The req of that biz .. Kind in the place at which he was contracted to work have ceased

or . Diminish.

d.

The em-ee has refused to accept his transfer to any other place of employment; unless his

contract of service requires him to accept such transfer (breach of contract)

e.

A change has occurred in the ownership of the biz for the purposed of which an em-ee is

employed or of part of such biz, regardless whether the change occurs by virtue of sale or

other disposition or by operation of law.

f.

Termination w/o notice5.

S13(1) C.o.s may be terminated by either party w/o notice, or if notice has alrdy been

given, w/o waiting for the expiry of such notice by paying to the other party and

indemnity (protection $) equal to the amt of wages that would have accrued during the

period of notice or unexpired term of notice

a.

S13(2) Either party may terminate w/o notice if the other party willfully breach a

condition of the c.o.s.

b.

Termination with special reasons :6.

Dismiss the em-ee w/o notice(a)Downgrade the em-ee(b)

Impose any lesser punishment as he deems just and fit(c)

Misconduct (S14(1))

An em-ee may terminate his c.o.s without notice if he/ his dependents are immediately

Only after due inquiry

Dismissal & RedundancySunday, 23 September, 2012

3:57 PM



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threatened by danger of death/violence/diseases by any person/circumstances even

though such conditions is stipulated in his c.o.s

S14(1) An em-er may, on the grounds of misconduct inconsistent with the fulfilment of

the express or implied condition of his service, after due inquiry -

1.

Dismiss the em-ee w/o notice(a)Downgrade the em-ee(b)

Impose any lesser punishment as he deems just and fit(c)

The Act also permits the em-er to suspend the em-ee for a max of 2 weeks on 1/2 pay for

purpose of holding such inquiry. If inquiry doesnt disclose any misconduct on the part of

the em-ee then em-er shall restore the full amount of wages withheld. -- S14(2)

2.

the inquiry is to be instituted as early as possible after the suspension of thecomplainant;

i.

the complainant is to be given particulars of the misconduct, preferably in writing;

and a reasonable time is to be given to him before the inquiry to enable him to

prepare his case;

ii.

where applicable, the complainant is to be accompanied by his union or committee

representative, if any, at the inquiry;

iii.

the inquiry is to be conducted, as far as possible, by such officer(s) as not directly

connected with the investigation of the misconduct, so as to give the hearing

impartiality;

iv.

examination of relevant witnesses is to be allowed at the reasonable discretion of

the officer-in-charge of the inquiry; and

v.

notes in the form of questions and answers and the final decision are to be recorded

to show that the inquiry was proper, and that the decision arrived at was fair.

vi.

The Employment Act does not define what constitutes due inquiry. However, reference

may be made to the following guidelines laid down by the Industrial Court in the case of

KJJ Cleetus and Unipamol (M) Sdn Bhd:

3.

DUE INQUIRY

Inquire asap->particulars(reasonable time)->representative(if

applicable)->conduct inquirt as far as possible by officers not

connected to investigation -> examination of witnesses ->

notes in Q&A and decision to be recorded

A workman whose services are terminated, laid off or retires is entitled to benefits.1.

Upon the em-ee attaining age of retirementa.

On the ground of misconduct after conducting due inquiryb.

Voluntarily by the em-eec.

Employer is not liable to pay any termination /lay off benefits under the following

categories: -

2.

What's a lay-off?3.

The term lay-off refers to a situation where an employee has not been able to provide his

employee with the kind of work the employee was employed to do, and the employees

remuneration is dependent on being provided with such work.

The em-er doesnt provide such work for at least a total of 12 normal working fays

within any period of 4 consecutive weeks.

a.

S5(1) The em-ee is deemed to be laid off if :-4.

LAY OFF



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The em-ee is not entitled to any remuneration under the contract for the

period/periods (within such 4 consecutive weeks) in which is not provided with work

b.

10 days wages per yr of service ; if 2yrs or more ; < 5yrsb.

20 days wages/yr of service; if 5 yrs or more.c.

In respect of incomplete years, the amount shal be calculates pro rata to the nearest

month

S6(1) The amount of termination/lay-off benefits payment to which an em-ee is entitled

shall not be less than:-

5.

Any termination/layoff benefits shall be paid within 7 days after the date with effect from

which the contract is terminated ( or which the period of 4 consecutive weeks has

expired- for layoff only)

6.

A written statement must be given to the em-ee ( stating the amount of wages / benefits

paid and the manner in which the benefits have been calculated)

7.

The remedies are :1.

Reinstatement and backpay(a)

This is the remedy that the Industrial Court is likely to award in normal cases of unfair or

unjustified dismissal. Section 20 IRA1967 provides for the remedy of reinstatement.

Reinstatement basically means that the employee, who has been unjustifiably dismissed,

is put back into the position he would have been in prior to his dismissal. In the words of

Tucker J. in Hodge v Ultra Electric Ltd(1943), reinstatement involves putting the

specified person back, in law and in fact, in the same position as he occupied in the

undertaking before the employer terminated his employment. The Malaysian case of Han

Chiang High School & Anor v National Union of Teachers in Independent Schools, is also

illustrative of this.

Thus, when an employee is reinstated he would be entitled to occupy the same position

that he occupied before, and would be entitled to receive arrears of salary from the time

he was dismissed until the time of reinstatement. His status and other privileges are

restored.

Compensation in lieu of reinstatement and backpay.(b)

Sometimes it is not possible or even advisable to order reinstatement. This may happen

where the court finds that reinstatement may produce negative results to the employer.

For example, the retention of the employee may lead to an apprehension of breach of

industrial peace. As was stated in the case of KFC Holdings Sdn Bhd and Lim Seng Yang,

the relief of reinstatement may be refused in exceptional circumstances like the employer

losing confidence in the workman, or the retention of the workman leading to an

apprehension of breach of industrial peace. Reinstatement will also be impossible where

the claimant has died after the proceedings in respect of his claim had begun.

When this happens the court is likely to order compensation in lieu of reinstatement. The

compensation payable is normally at the rate of one months pay for each year of service

subject to a maximum of 24 months. However, this is subject to other considerations.

The court is free to take into account various factors such as the duty of the employee to

mitigate his loss by seeking alternative employment and the conduct of the employee

UNJUSTIFIABLE DISMISSAL



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contributing to the dismissal, before making an order for compensation in lieu of

reinstatement.

Re-engagement/re-employment.(c)

Sometimes the employee is merely re-employed. This means that the employee is merely

given an opportunity to work again. His past services are erased and no arrears of salary

or other allowances are payable. The case of Restu Motor Sdn Bhd and Nazaruddin bin

Abdul Samadmay be cited as an example. In this case following conciliation efforts by theIndustrial Relations Department, the company agreed to employ the claimant anew in the

same post with the same salary but his past service was lost and he was also not given any

arrears of wages.

CONSTRUCTIVE DISMISSAL

Constructive dismissal refers to a situation where the employee himself has resigned

because the employer has made the working environment intolerable for the employee to

continue working for the employer. By making the working conditions intolerable the

employer is deemed to have breached the contract of employment, thereby entitling the

employee to resign.

1.

Examples of such conduct are where the employer had compelled the employee to do

demeaning tasks, demoted the employee, or subjected him to unfair or oppressive

working conditions with a view of humiliating the employee so that he himself will resign

from his job. Under such circumstances, if the employee does indeed feel compelled to

resign, he may be considered to have been constructively dismissed.

2.

An illustration is found in the case ofBumpus v Standard Life Assurance Co Ltd(1974). In

this case, the employee was faced with demotion. He wrote a letter of resignation to his

employer indicating his refusal to accept the demotion and thereby accepting the

repudiation by the employer. The court held that he had been constructively dismissed.

3.

Whether the employers conduct amounted to a breach of the contract of

employment going to the root of the contract OR whether the employer had shown

an intention not to be bound by the contract.

a.

Whether the employee made up his mind to leave the employment and acted within

a reasonable time after the employers conduct.

b.

Some guideline as to whether there has been a constructive dismissal has been provided

in the case ofWong Chee Hong v Cathay Organisation (M) Sdn Bhd. In that case it was

stated that whether there has been a constructive dismissal is to be determined by two

factors:-

4.

Redundancy, in the context of employment law, refers to a situation where an employer

has surplus of labour and has to downsize his labour force.

1.

A redundancy may be said to occur in the circumstances mentioned in s.12 (3) (a) (f) of

the Employment Act 1955

2.

Seniority - most recently employed should be first to retrench (LIFO)i.

Job performance - poor performance first to be retrenchii.

Potential - least potential first outiii.

Proper selection of em-ees:a.

Em-ers shld consult the em-ees rep / trade unions before any announcement to te

em-ees are made

b.

Em-ers shld give em-ees early warning, early retirement/retrenchment benefits and

assistance from the govt in helping the workers find alternative employment b4

c.

There must be proof of redundancy by the employer. Following measures an employer

should take:-

3.

REDUNDANCY

Repudiation - The rejection or refusal

By retrench means redundancy



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declaring retrenchment

Not compulsory for em-ers to provide any retrenchment benefits to the em-ee unless

stated in the contract following negotiations with trade officials.

4.

He has offered suitable alternative employment to his worker and the worker has

accepted or unreasonably refused it

a.

The employee has served less than 3 yrsb.

Em-er is not obliged to pay any retrenchment benefit to his retrenched workers if5.

Documents

ACCA F4 MYS Variant - Employment Act