Security of tenure vs management prerogative to discharge surplus labour

An employee's right to job security has to be balanced with the just requirement of the employer who should be given the opportunity, under certain circumstances, to retrench workers from employment arising from genuine business reasons such as decrease in business activities, perceived advanta...

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Main Authors: Ali Mohamed, Ashgar Ali, Sardar Baig, Farheen Baig
Format: Article
Language:English
Published: Center for Promoting Ideas (CPI) 2012
Subjects:
Online Access:http://irep.iium.edu.my/23842/
http://irep.iium.edu.my/23842/
http://irep.iium.edu.my/23842/1/International_Journal_of_Business_and_Social_Science_Vol_3_no._7_2012_Ashgar.pdf
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spelling iium-238422012-05-09T04:17:39Z http://irep.iium.edu.my/23842/ Security of tenure vs management prerogative to discharge surplus labour Ali Mohamed, Ashgar Ali Sardar Baig, Farheen Baig K Law (General) KPG Malaysia An employee's right to job security has to be balanced with the just requirement of the employer who should be given the opportunity, under certain circumstances, to retrench workers from employment arising from genuine business reasons such as decrease in business activities, perceived advantages of greater mechanisation and technological change, deployment of capital resources in different ways, reorganisation of business operations with a view to enhancing profitability, and reducing losses either generally or in selected areas, among others. In the above circumstances, the law cannot give an answer which can satisfy both parties. Both would have to come to terms with facing harsh realities during time of uncertainty or change. If the employer carries on business and sustains losses, this may lead to insolvency, bankruptcy or winding up. The other option is to sacrifice some workers, thereby preserving the viability of business and the employment of the remaining workers. Therefore, it would not be inaccurate to state that retrenchment is a difficult area of labour law because a balance has to be struck between the two competing interests, the employee’s interest of retaining his security of tenure against the protection of the employer’s business interest and the overriding interest would be preserving the viability of the employer’s business and the employment of the remaining workers. Having said the above, this article will discuss workers security of tenure in employment as opposed to the employer’s prerogative of retrenching workers under certain circumstances. Center for Promoting Ideas (CPI) 2012-04 Article PeerReviewed application/pdf en http://irep.iium.edu.my/23842/1/International_Journal_of_Business_and_Social_Science_Vol_3_no._7_2012_Ashgar.pdf Ali Mohamed, Ashgar Ali and Sardar Baig, Farheen Baig (2012) Security of tenure vs management prerogative to discharge surplus labour. International Journal of Business and Social Science, 3 (7). pp. 150-161. ISSN 2219-6021 (O), 2219-1933 (P) http://www.ijbssnet.com/journals/Vol_3_No_7_April_2012/17.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic K Law (General)
KPG Malaysia
spellingShingle K Law (General)
KPG Malaysia
Ali Mohamed, Ashgar Ali
Sardar Baig, Farheen Baig
Security of tenure vs management prerogative to discharge surplus labour
description An employee's right to job security has to be balanced with the just requirement of the employer who should be given the opportunity, under certain circumstances, to retrench workers from employment arising from genuine business reasons such as decrease in business activities, perceived advantages of greater mechanisation and technological change, deployment of capital resources in different ways, reorganisation of business operations with a view to enhancing profitability, and reducing losses either generally or in selected areas, among others. In the above circumstances, the law cannot give an answer which can satisfy both parties. Both would have to come to terms with facing harsh realities during time of uncertainty or change. If the employer carries on business and sustains losses, this may lead to insolvency, bankruptcy or winding up. The other option is to sacrifice some workers, thereby preserving the viability of business and the employment of the remaining workers. Therefore, it would not be inaccurate to state that retrenchment is a difficult area of labour law because a balance has to be struck between the two competing interests, the employee’s interest of retaining his security of tenure against the protection of the employer’s business interest and the overriding interest would be preserving the viability of the employer’s business and the employment of the remaining workers. Having said the above, this article will discuss workers security of tenure in employment as opposed to the employer’s prerogative of retrenching workers under certain circumstances.
format Article
author Ali Mohamed, Ashgar Ali
Sardar Baig, Farheen Baig
author_facet Ali Mohamed, Ashgar Ali
Sardar Baig, Farheen Baig
author_sort Ali Mohamed, Ashgar Ali
title Security of tenure vs management prerogative to discharge surplus labour
title_short Security of tenure vs management prerogative to discharge surplus labour
title_full Security of tenure vs management prerogative to discharge surplus labour
title_fullStr Security of tenure vs management prerogative to discharge surplus labour
title_full_unstemmed Security of tenure vs management prerogative to discharge surplus labour
title_sort security of tenure vs management prerogative to discharge surplus labour
publisher Center for Promoting Ideas (CPI)
publishDate 2012
url http://irep.iium.edu.my/23842/
http://irep.iium.edu.my/23842/
http://irep.iium.edu.my/23842/1/International_Journal_of_Business_and_Social_Science_Vol_3_no._7_2012_Ashgar.pdf
first_indexed 2023-09-18T20:36:00Z
last_indexed 2023-09-18T20:36:00Z
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