Company closure - termination notice

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asked on Oct 30, 2013 at 15:10
Was informed by my boss verbally on 18-Oct-2013 that he is going to close company operation by end of the month. Which means salary payment to us is up to this month (Oct 2013) only. No salary & no need to attend to office from Nov 2013 onwards. He told me to start looking for new job now. Then I can start my new job after my confinement month as he aware I may not get a new job by next month. No other compensation will be given. A company closure letter was issued on 28-Oct-2013, company cease operation starting from 1-Nov-2013.

His reason for closing down company operation is company not doing well & not getting any business. He has no money to pay us from next month onward & as well as 2 months notice. So, he wanted us to leave by end of this month. (Currently, we only have 3 staff in the company excluding my boss).

My questions:

1. May i know in my case, shall the company pay us 2 months salary by given 2 months notice? (As in my appointment letter stated 2 months notice for either party on termination).
2. I'm pregnant now 32 weeks, since my boss aware my maternity will start by mid dec 2013 till mid Feb2014, is he suppose to pay me another 2 months maternity salary or any other compensation to me? FYI, I work in this company since Oct 2010 & my pregnancy news was announced to my boss around April 2013.
3. Am i protected under any labour act if above 2k salary?
4. Which department shall we go to? Labour Office or IR? I called to labour office, the officer told me salary above 2k, shall go to IR. I called to IR, IR said company closure case they will not handle. Ask us go to Mahkamah Tuntutan Rendah.
I'm loss.

Appreciate your advise.
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2 Answers

answered on Oct 31, 2013 at 03:58
Hi there

1. Yes, he should pay the 2 months salary as that is contractually due. If your salary is less than RM5K, you can go to the Labour Court to claim that amount.

2. Unless you are covered under the Employment Act which is if your salary is less than RM 2,000, then i am afraid there is no other benefits entitled to you under any statutory provision unless your contract states any maternity benefits which i think would be unlikely.

3.You are not protected under the Employment Act if your salary is more than RM2,000. But if your salary is not more than RM 5,000, you can enforce your claim at the Labour Court ONLY in respect of non payment of wages.

4. Very difficult predicament for you. Unless your covered under the Employment Act wherein if the Company closes down then they are obligated to pay termination benefits. If your not under the scope of the Employment Act, sad to say there seem to be no real remedy. But you should check if this is a genuine close down or is your boss closing down and opening another business in the  same nature by hiring new employees. If you have any evidence of that, then you should pursue your case at the IR department by saying that this is not a genuine closure.
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answered on Oct 31, 2013 at 18:28
ok. thank you very much!
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