work offer letter: termination clause

[kmlim]

Hi,
I've just got a job offer with a permanet position in a fairly big local company. But I've got this clause which sound like they can terminate me at any time by just paying 2 months salary regardless of my service period as below. So to me it is not a permanent job anymore:

“Termination will be on the basis of giving 2 months’ notice by either party or the payment by either party of a sum equivalent to 2 months’ salary in lieu of written notice"

Any place I could refer to like the labour office or could any "lawyer" out there comment a bit.

[coleslaw]

it's the norm in letter of offer. some requires a month and others more. so if u wanna resign, u need to give 2 months notice. that's all. permanent does not mean they can't fire u if u don't perform. except probably govt service.

[Ullas Sahadevan]

When you get a new job, you might be in a 'probationary' period for a few months, during which your services can be terminated with/ without proper notice. After a period of probation, you get 'confirmed'. Employers can still fire you, but this time a notice period is a mandatory clause. Do provide more details on where in this 'slave-to-the-grind' cycle are you right now?

[kmlim]

Employers can still fire you, but this time a notice period is a mandatory clause. Do provide more details on where in this 'slave-to-the-grind' cycle are you right now?

I can't think of any reason why they would terminate us except of course employee misconduct, can you just name a few reasons.
So you all are saying termination is not equal to retrenchment which will be compensated according to labour law right?

[Ullas Sahadevan]

I can't think of any reason why they would terminate us except of course employee misconduct, can you just name a few reasons.
So you all are saying termination is not equal to retrenchment which will be compensated according to labour law right?

Well, companies/ management can fire you for non-performance. As far as I understand, retrenchment is when your company cannot afford to employ your services anymore. On the contrary, you can get fired when your company feels you haven't risen to their expectations AND they have found someone better. Employee Misconduct: yes that would be somewhere on the list too!

[perceval]

No point worrying about the termination term unless you seriously are not performing at all. Prove yourself as an asset to the company and they'll declare you as a critical talent and termination will never happen to you unless the company goes into bankruptcy.
Anyway, all the best in your career ahead.

[iml109]

. Employee Misconduct: yes that would be somewhere on the list too!

That should be under another clause, whether should you commit something like, they can terminate u on the stop. No payments / remaining salary given liao lor!

[birdy]

Please bare in mind that this is Employment Contract, any contract would incorporate termination of contract notice or compensation if termination term is not met. So, don't worry about this very much... if you contribute well to the company, your boss will not terminate you unless of course under unforseen circumstances, they hv to let go you, probably because your salary is a burden to them!

[La Vida Loca]

I can't think of any reason why they would terminate us except of course employee misconduct, can you just name a few reasons.
So you all are saying termination is not equal to retrenchment which will be compensated according to labour law right?

Just wanna add that if you're an executive with a salary of more than RM1500 per month, then you're not 'covered' under the labour law. Your company's Terms & Conditions of Employment takes precedence. You are of course welcome not to accept the stipulated Terms, but that will translate to not wanting the job. Best of luck.

[PeterLee]

Just wanna add that if you're an executive with a salary of more than RM1500 per month, then you're not 'covered' under the labour law. Your company's Terms & Conditions of Employment takes precedence. You are of course welcome not to accept the stipulated Terms, but that will translate to not wanting the job. Best of luck.

KM Lim, don't worry.
That's the standard clause for Letter of Offer of Employment.
It is included in all my L/O.
It takes time and money to employ new employees, normally no company would simply fire new recruit without any reason. They are more worried of employees leaving after a short span.
Even though you are still under probation, if you strongly feel that you have been unfairly dismissed, you can still bring your case to the Labour court, if your salary is below RM5K, or Industrial court if it is more than RM5K.
Unlike Singapore, Malaysia labour laws are pro-employees. It is not easy to terminate an employee in Malaysia.

[stanleywkh]

Peter from your post you seems to be very knowlegeable in the Employment Act and Labour Law. I have a question that I hope you can provide some advice.

This is a case of where the head of the company ( not the owner ) is trying to force my sister to resign by issuing warning letters with threats of domestic inquiry and dismissal where the points are all fabricated and she has all the evidence to prove them wrong. It is like a mental hell for her lately.
Her salary is below RM5K.

Can I PM you for advice on what alternatives she can resort to.

Thanks.

KM Lim, don't worry.
That's the standard clause for Letter of Offer of Employment.
It is included in all my L/O.
It takes time and money to employ new employees, normally no company would simply fire new recruit without any reason. They are more worried of employees leaving after a short span.
Even though you are still under probation, if you strongly feel that you have been unfairly dismissed, you can still bring your case to the Labour court, if your salary is below RM5K, or Industrial court if it is more than RM5K.
Unlike Singapore, Malaysia labour laws are pro-employees. It is not easy to terminate an employee in Malaysia.

[denver]

This is a case of where the head of the company ( not the owner ) is trying to force my sister to resign by issuing warning letters with threats of domestic inquiry and dismissal where the points are all fabricated and she has all the evidence to prove them wrong. It is like a mental hell for her lately.

A friend of mine was in a similar case a few years back. She went to the Labour office and seek advice from the officer there (bring all the evidences too). Like PeterLee said, our labour law is actually quite favourable to the employees. The officer should be able to help / give advice on what to do.

[kfboy]

A friend of mine was in a similar case a few years back. She went to the Labour office and seek advice from the officer there (bring all the evidences too). Like PeterLee said, our labour law is actually quite favourable to the employees. The officer should be able to help / give advice on what to do.

Stanley, advise your sister to reply every warning letter with evidence that they are wrong. If there is no response to the letters, the company can immediately terminate your sister. As long as she does, they do not have the excuses to terminate her.

[PeterLee]

This is a case of where the head of the company ( not the owner ) is trying to force my sister to resign by issuing warning letters with threats of domestic inquiry and dismissal where the points are all fabricated and she has all the evidence to prove them wrong. It is like a mental hell for her lately.
Her salary is below RM5K.

Better go to the nearest labour office as soon as possible.
Ask her to keep all evidences, witnesses for future court cases.
Important is she has to reply all warning letters with due care.
Don't fall into their trap.

[evelynlim]

Even though you are still under probation, if you strongly feel that you have been unfairly dismissed, you can still bring your case to the Labour court, if your salary is below RM5K, or Industrial court if it is more than RM5K.
Unlike Singapore, Malaysia labour laws are pro-employees. It is not easy to terminate an employee in Malaysia.

I thought Labour Court only for employee earning less than RM1500 and Industrial Court for more than RM1500 ?