Worried Employee: Organization to merge with a major company

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asked on Mar 29, 2017 at 20:47
edited on Apr 4, 2017 at 03:45
I am working in this cluster team of an organization helping to sell several properties who is providing Meeting & Room accommodation services to clients. Recently a major company bought over our organization and is merge as one big chain company. 

1. Should or if the main company wish to disbanned the cluster team, what is the normal practice by the HR team? Will they be relocating us a new post in the property team or will they terminate us? 
2. Salary delay, should the HR and Finance notify the employee should Salary will be credited later the the agreed date on the Employment letter? 
3. Should the team is disbanned, how long notice should the HR & Management provide to staff as notification and information to employee?
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2 Answers
answered on Mar 30, 2017 at 00:10
3. It depends on period of service, whether confirmed or not confirm staff. 

Use Google function under the forum heading here.
Google " Arun ". There are very good up to date info in one of the threads.
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answered on Apr 17, 2017 at 03:49
1. Your remedies would depend on whether you fall under the scope of Employment Act 1955 or not. If you fall under the scope of EA 1955, ie if your salary is less than RM 2,000, the notice period is 2 months if the Company decides to retrench. If your employment contract provides more favourable provisions, ie lets say 3 months, then the Company has to comply with the more favourable provision, which is 3 months. If you do not fall under the scope of EA 1955, then your notice period would be according to your employment contract.

2. If you fall under the scope of EA 1955, you are entitled to termination benefits which is calculated on the following basis:

less than 2 years service: 10 days wages per year of service
2 to 5 years: 15 days wages per year of service
more than 5 years: 20 days wages per year of service.

3. If you do not come under the scope of EA 1955, there is no legal obligation to pay retrenchment benefits but most company do pay 1 month for each year of service. 

4. Salary should not be paid later than 7th day of the salary cycle of the Company. So assuming the Company pays salary on the 26th of each month. Therefore, they would have to pay salary within the 7 days following 26th. 
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