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Termination of Employment
65 Views  ⚫  Asked 14 Years Ago
asked on Dec 19, 2001 at 16:12
by   angkasa01
I am employed (confirmed employee) in a Multi-national company and receiving a monthly base pay of RM2000.00. I am considering of resigning from the present company for personal reasons. I wish to give a 24 hours termination notice, however, extracts of the Termination Clause in my employment contract are as follows:

"Upon confirmation as a permanent employee, your employment may be terminated on one (1) month notice from either party. The Company reserves the right to make an equivalent payment in liew of notice and any outstanding annual leave entitlements."

To my understanding of the above clause, The company will need to pay one months pay in lieu of the notice if they were to terminate my employment immediately. However, the terms of contract is silent about an employee terminating the employment immediately.

I wish to terminate my employment without notice and more than prepared to pay the one month pay in lieu of the notice. Am I allowed to do that or do I have to still give one months notice and I am not allowed to terminate my employment immediately? Please advice.

I understand that the provisions in the Employment Act allows that Termination notice period should be the same period for both parties. Does this also include serving the in lieu payment of notice if there is an immediate termination of employment? There is also a provision under the act that if either party is to terminate the contract without notice, the party will have to pay the other party an indemnity equal to the amount of wages of the notice period.

I am extremely puzzled as the contract is silent about an employee terminating the contract without notice? I would like to know whether I am able to make an immediate termination of the contract of service with paying the amount in lieu?

Thank you for your kind assistance.

the extremely puzzled...
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answered on Dec 21, 2001 at 14:07
by   mazira
Dear Angkasa,

Normally termination of service will be the same for either party, i.e by giving xxx month/s notice or payment in lieu of notice.  Have you speak to your management about terminating your service on 24 hours notice and payment in lieu?  Try talk to them. 

I don't see any right of the company to hold employee from resigning with short notice as you are willing to pay your notice in lieu.
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