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Thread: Company winding up - Is it compulsory to compensate the employee

  1. #1
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    Company winding up - Is it compulsory to compensate the employee

    Dear All, I have a question, say the company that I work for now is going to wind up, by law, they should compensate me right?

  2. #2
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    Why should a company on selfwinding-up mode pay the soon2b xstaff? maybe the soon2b xstaff were the cause of the winding up?

    Anyway, i am sorry to hear about tis ...

    Cant help you here cos
    1. I never heard of (except a few yrs back, a certain terra merra car factory in klang (?) that suddenly 1day just shut & padlocked its front gates and left 100? workers with blur blur looks milling around outside at 8am in the morning... a conman dato/datuk owned it lah...bioasa lah pak.

    2. Never done one myself

    Yang Beh-tolong ToonIstimewaUtamaXlatotupai

    p/s whats yr skill sets?
    in luv with bikes...in lust with AphroditeS AWAS! Suspek is an Avid procurer to myths, lies, legends, folklores, i-ching, rumors, misinformation, cakap-ayam, spɹoʍ uʍop ǝpısdn puɐ˙˙DLL .
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  3. #3
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    They should compensate you. First thing you need to do is report the matter to the nearest labour office.
    Their addresses here : http://jtksm.mohr.gov.my/index.php/m...eri#7-selangor

    Meanwhile, familiarise yourself with the regulations here : http://pesaraonline.net/terminationbenefits.htm
    If you believe in yourself, anything is possible

  4. #4
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    I'm reckoning by common sense (with some disregard to employee interests) that if a company or employer winds up due to primarily financial difficulty like acute debt, bankruptcy or no money at all, it'll take a long time for the employees to be compensated. No money how to pay? Right or wrong is for the court to decide, but if employer no money to pay, either the beneficiaries don't get it or will take a long long time. Meanwhile these victims better get another job to survive meanwhile.

  5. #5
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    Yes, I agree with you bslee. However, it is better to report to the labour department quickly before leaving for another job.

    Blackgammon, please do call the labour office to get further advice.
    If you believe in yourself, anything is possible

  6. #6
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    If its me, I will.
    a) Meet the top management and pop them the question about your prospects and future in the company. Hear them out,(NO NEED TO ARGUE or BANG TABLE! Keep Coool!!). Right or wrong is for you to digest, analyse and use your own intelligence to determine what they're trying to say, bluffing or f'ing you around. Its just like a business negotiation or bargain, may work out or not, is up to your intelligence.
    b) Based on what their assurances or disappointing news, think rationally to decide your next move, find another job, report to authorities or meet the management again (collectively with other employees who may risk similar fate) for a clearer picture of the situation.
    c) If all else fails, a deadlock, no assurances, you've decided (others too) ultimately to leave, find or get another job, and report them collectively with other mates. Maybe the employer doesn't deserve any mercy. Your survival and future is at stake that comes first. Loyalty or compassion isn't an issue anymore. Ok..the rest you play by ear and a rational approach. No need to run amok!

  7. #7
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    If the winding up is due to financial dire straits then there is little chance the company will have enough money left after making all the statutory payments like PCB, EPF, and SOCSO. I am assuming they have money to pay even pay all these which will take precedence over any money owing to employees.
    " In the land of the blind the one-eyed-jack is king."

  8. #8
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    Quote Originally Posted by Henry T View Post
    If the winding up is due to financial dire straits then there is little chance the company will have enough money left after making all the statutory payments like PCB, EPF, and SOCSO. I am assuming they have money to pay even pay all these which will take precedence over any money owing to employees.
    I reckon most employees assume or presume nothing. No one knows for sure except the bosses themselves about their company financial status or about whats going to happen next. For all you know at best employees better do something to protect themselves (like look out for another job to survive) or left in a lurch and no direction. Here in Malaysia, its save your ass 1st. Justice may come too late. Nothing is instant here in this land except your utility bills, saman and death. You bail out of a sinking ship, you don't wait to go down with it. Never expect anyone going to throw a lifebuoy when it sinking.

  9. #9
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    I was laid off in 1984 due to lack of projects.Meanwhile they tell me to look for job elsewhere and i can go for interview anytime i like .Report this to labour office,nothing they can do as i sign the appointment letter stating one month notice each party.
    My friend laid off 20 staff last year buy paid each of them 6 months advance salary and can come to work as they like until the sixth month but everyone must write a resignation letter.

  10. #10
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    Well, at least they tell you or advise you to do something. It all depends on the employer's attitude to resolving a big problem to both sides. Again, expect the worst without any help or advice but try to resolve things with a diplomatic and sane approach till the end of the road and act wisely. Whether one gets compensation or not will vary with each case. I take there's nothing consistent in this land. Hope for the worst (unless you're already sure of something based on fact and experience) and act wisely. There are good and responsible employers as much as there's rogues to be found anywhere. Just as many get lucky and let off easy, and many who're not.

  11. #11
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    Quote Originally Posted by jan tomaswaki View Post
    I was laid off in 1984 due to lack of projects.Meanwhile they tell me to look for job elsewhere and i can go for interview anytime i like .Report this to labour office,nothing they can do as i sign the appointment letter stating one month notice each party.
    My friend laid off 20 staff last year buy paid each of them 6 months advance salary and can come to work as they like until the sixth month but everyone must write a resignation letter.
    Fortunately, they tell you & your friend in advance & not left you all in the lurch. There are employers who tell you today that they can't pay you from November onwards or they don't even tell you till you chase for your November salary. That's what happened to my friend. Financial trouble has been brewing at the company for quite some time but the bosses never let the employees know & just stopped paying them without any notice.

    There's nothing you can do in this case except report to the labour office, hope to get your money back & look for another new job soonest possible. I always advise new graduates who enter the job market to have a minimum of 3 months savings in case of adversity.
    If you believe in yourself, anything is possible

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