Advertisement

Company making a loss and not paying my salary. Later forced to resigned. Can I sue my employer?

440 Views  ⚫  Asked 1 Year Ago
asked on May 5, 2016 at 17:20
by   helping
edited on May 23, 2016 at 05:57
 
I was a sale director of a company. I was also in-charged of overall operation as it was newly set-up company about 2 years. Last year, the company was in a loss position. My investor cum shareholder/director was not happy with the loss position. So before end of last year, I was told that starting 2016, no salary for me until the company in a profit position and able to pay my salary. I was offered to take over the company with condition to pay the investor his original capital fund injected in the company. 

From January to April this year, I managed to close some sales with small margin and even managed to secure some future contract, which I have informed my investor about it. I also demanded that the company to pay me my salary from January onward but the investor refused to pay with a reason the sales that I brought in was not able to pay for my salary. Then I was forced to resign and back dated my resignation letter. I was not been paid salary until my last day.  

Can I still report to the Labour Department? Kindly advise.
0 had this question
Me Too
0 favorites
Favorite
[ share ]
8 Answers

answered on May 6, 2016 at 01:51
by   vkpc
Are you a partner or an employee?
Did anybody give you a offer letter when you started work?
0 found this helpful
Helpful

answered on May 6, 2016 at 16:04
by   helping
edited May 23, 2016 at 05:59
 
Yes, I had offer letter from the company as an employee (sales director) and the offer letter did state that I'll be in partnership after 1 year but it didn't happened. My investor told me to hold on until the following year even though I managed to bring profit to the company on 1st year itself.
0 found this helpful
Helpful

answered on May 9, 2016 at 20:12
by   arun1011
You can certainly file a complaint at the Labour Court provided your wage does not exceed RM 5,000.00.
1 found this helpful
Helpful

answered on May 9, 2016 at 23:36
by   helping
edited May 23, 2016 at 06:12
 
What if my salary exceeded RM5000?

Anyway, I can sue my ex-employer?
0 found this helpful
Helpful

answered on May 25, 2016 at 04:39
by   arun1011
If your salary exceed RM 5,000.00, you can only sue your ex employer in civil courts, most likely Magistrate or Sessions Court.
0 found this helpful
Helpful

answered on May 26, 2016 at 16:07
by   helping
@ arun1011

thanks for the reply.  I guess to sue my ex employer through civil court, i need to engage a lawyer for that.  There goes huge cost to hire one. :(
0 found this helpful
Helpful

answered on May 26, 2016 at 17:42
by   jeff005
edited May 26, 2016 at 17:43
by   jeff005
@ helping

Have you been appointed a Director of the company? Filed with ROC under Company's Act?

If not, then you are an employee.

Working Director's salary can go up or go down, subject the ROI of the company and an expressed written agreement with other co directors or even minuted in AGM or EGM.

Lacking a proper agreement between you and the company as Sales Director, you can sue as an employee.
0 found this helpful
Helpful

answered on May 27, 2016 at 15:28
by   jeff005
@ helping

Personal Opinions
If you have the locus standi to sue in the civil court,

Request help from "The Avengers" of this forum to self represent to file a suit in court thus saving expensive legal fees. It MAY be possible to file if you read and study on court rules and regulations.

It may be expensive for your ex company to engage a lawyer to represent them.
Perhaps they may decide to pay you something to settle the whole issue.
Something is better than nothing rather to frus over this bad episode.

Good Luck

or ask arun1011

or go read this FB page..

Arun Kumar & Associates (they claim to be Malaysian Employment Laws specialists)
No harm try asking for quotations without commitments.
0 found this helpful
Helpful

Your Answer





By posting your answer, you agree to the privacy policy and terms of service.