Retrenchment : the law and practice in Malaysia

The employer is empowered to devise measures to reorganise and restructure or manage their workforce in any manner they deem appropriate to improve its profitability. Retrenchment of workers based on operational requirements is recognised for example, when there is reduction, diminution or cessation...

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Bibliographic Details
Main Authors: Ali Mohamed, Ashgar Ali, Sardar Baig, Farheen Baig
Format: Book
Language:English
Published: Thomson Reuters Malaysia Sdn Bhd 2012
Subjects:
Online Access:http://irep.iium.edu.my/24206/
http://irep.iium.edu.my/24206/1/Retrenchment_Cha1-Retrenchment.pdf
Description
Summary:The employer is empowered to devise measures to reorganise and restructure or manage their workforce in any manner they deem appropriate to improve its profitability. Retrenchment of workers based on operational requirements is recognised for example, when there is reduction, diminution or cessation of the type of work the employee is performing. The excess services of employees resulting from a genuine reorganisation scheme adopted for reasons of economy and better management of the business may be discharged. Thus, a genuine redundancy in the organisation must be established before the retrenchment of surplus labour could be justified. However, the decision to retrench workers must not be capricious, without reason, mala fide, actuated by victimisation or unfair labour practice. The book “Retrenchment: The Law and Practice in Malaysia” provides an in-depth discussion of the laws and related issues concerning the subject matter in this country. The book contains a collection of legislations and awards of the Industrial Court on the subject and further, it is explained in a clear, concise and organised manner. When people are aware of the laws governing redundancy and retrenchment, industrial harmony can further be improved with the implementation of proper procedures to retrench workers, if necessary, with least violation of their rights. It is to be noted that the laws on retrenchment in Malaysia are not found in one single document, hence, this book is significant as it has compiled these laws and analysed them with reference to the awards of the Industrial Court.