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Unit 5 & Unit 6 Termination of Contract (Dec 2022) (Highlighted)
Unit 5 & Unit 6 Termination of Contract (Dec 2022) (Highlighted)
Termination of Contract
Termination of contract
Termination maybe for any number of reasons.
A dismissal maybe either lawful or unlawful.
Lawful dismissal occurs where employer
terminates contract according to requirements of
contract or statute.
Employee may challenge dismissal under the
statutory unfair dismissal provisions
Termination simpliciter – dismissing an employee
without a proper reason not acceptable in Malaysia
Security of employment an important social principle
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Termination of contract
Wrongful dismissal occurs where employer
terminated the contract without fulfilling contract
or statutory requirements.
Termination that is lawful at common law maybe
found to be without just cause or excuse
(Industrial Relations Act, 1967).
Termination may occur where:
Contract has been performed by virtue of a
term in the contract e.g. upon completion of
specific work
At expiry of a specified period of time
Contract is subject to a particular contingency
Notice of termination
Length of notice of termination shall be the same
for both employer and employee
Determined by provision made in writing in contract
of service
If no provision in writing then notice shall not be
less than…………
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Payment of benefits
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Amount of benefits
An employee is entitled to termination or lay-off benefits
payment as follows:-
Not less than -
10 days for every year of service (less than 2 years)
15 days for every year of service (2-5 years)
20 days for every year of service (more than 5 years)
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Probation periods
•When employee first offered a job:-
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Probationers' rights
• Probationer is also an employee.
• Should not be dismissed during probationary
period except for misconduct or on grounds of
redundancy. A proper procedures should be
followed.
• Probationer should be given suitable training,
coaching and guidance.
• Performance should be monitored and appraised
by immediate superiors
• Written, documentary evidence should be kept to prove
that appraisal has been conducted
• If performance is not satisfactory
• Should be given one or more warnings
• Preferably in writing
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Resignation
• Resignation is termination by an employee.
• Employee may resign by giving requisite
termination notice as in employment contract.
• An employee may if the contract provides pay
salary in lieu of notice - Employment Act, 1955
Section 13(1).
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Forced resignation
• Resignation under compulsion is not a resignation at law
Considered a dismissal
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