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Termination And Retrenchment Of Employees: Understanding Your Obligations As Employers & Doing It Right

Expert Speaker David Kanagaraj

MYR901.00 (including SST)



Dismissing or terminating employees seems to be one of the most difficult areas of management.  It seems that an employer is never able to dismiss an employee the right way, and in most of the reported cases of dismissals, the courts seem to decide that the dismissal is unjustified.

Similarly, in the event of retrenchment, there seems to be much misunderstanding.  The common expectation seems to be that retrenchment can only be carried out when the company business is doing badly. 

Designed specifically for HR professionals, this programme provides participants with the knowledge necessary to carry out dismissals the right way and thereby ensure that the company does not end up paying huge amounts of money to the dismissed employees. 

What You Will Learn

At the end of the workshop, you will walk away with an understanding of:

  • What constitutes dismissal?
  • The difference between dismissal and termination
  • The reasons for which an employee can be dismissed or terminated
  • What is retrenchment?
  • When to carry out retrenchment:
    • Restructuring
    • Reorganising for prevention of losses, increasing profits, economy, convenience, etc.
  • How to plan retrenchment and select employees?

Who Should Attend

This workshop is suitable for:

  • HR Managers/ Executives
  • Employee Relations Managers & Executives

Programme Outline

1. Introduction
2. Dismissal & Termination – The Differences
3. Statutory Provisions
  • The Employment Act 1955
  • Employment (Termination & Lay Off Benefits) Regulation 1980
4. Valid Reasons for Dismissal/Termination – The Procedures

(a) End of Probation

  • Monitoring, training, counselling, etc.
  • Warnings, extensions/termination

(b) End of Temporary Employment

  • Reasons for temporary employment
  • Reasons for non-renewal

(c) Resignation

  • Voluntary / Involuntary
  • Acceptance of resignation

(d) Retirement

  • Age of retirement
  • Where to retrieve and how
  • Post-retirement employment

(e) Frustration

  • When and how it occurs
  • Illness or imprisonment
  • How to terminate

(f) Misconduct

  • What is misconduct?
  • Express and implied terms of a contract of service
  • Types of misconduct
  • How to handle
    • Absenteeism, late-coming and tardiness
    • Excessive sick leave, patterned sick leave and shopping for sick certificates
    • Poor performance/bad work habits
    • Insubordination, fighting, sexual harassment
    • Fraud, cheating, theft, dishonesty
    • Sleeping at work
    • Gambling/drinking alcohol at company premises
    • Sabotage, misuse of electronic facilities, etc.
    • Others
5. Breach of Contract
  • Constructive dismissal
  • How to avoid
6. When is retrenchment necessary?
  • Economic downturn
  • Cessation of business
  • Diminishing of work
  • Automation
  • Reorganisation
7. Procedures for Retrenchment 
  • Selection of retrenchees
  • By selection/department or company
  • LIFO
  • Voluntary separation – the pros and cons
  • Foreign workers
8. Exercise of Retrenchment
  • Notice or indemnity in lieu
  • Contractual / legal requirements
  • Service of notice of retrenchment
  • When to inform retrenchees
9. Benefits on Retrenchment
  • Statutory
    • Employment Act and Regulation
    • Collective agreements
  • Contractual
    • Contract of service
  • Computation of actual benefits 
    • True day’s wage
10. Consequences of Retrenchment
  • Notifying the Labour Department
  • Effects of non-compliance with statute or procedures
  • Effects on the morale of workers and productivity
11. Alternatives to Retrenchment
  • Pay cut
    • Effects
  • Reduction of overtime, hours and days of work
  • Lay-off
    • Consequences
  • Are there other alternatives?

Expert Speaker

David Kanagaraj had served the Labour Department and Industrial Relations Department for about 29 years before leaving at the end of 1995. He then served as the Human Resource and Administration Manager of a medium-sized company for about 9 months, before moving into full-time consultancy and training. He is considered a leading expert on labour legislation, especially the Employment Act, the Industrial Relations Act, Trade Unions Act, Employees Provident Fund Act, Employees Social Security Act and the practices relating to employee relations.  He is further very conversant with the decisions of the Courts on all matters relating to employee relations and labour legislation. 

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