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Dismissal/Termination of workers
Short Write-up
Termination of Employment Contracts – can be termination by either expiration of time, termination by notice, termination without notice and termination by specific reasons. These can be also terminations of employment contract in lieu of notice.
- Termination by expiration of time
A contract of service for a specified period of time or for the performance of a specified piece of work terminates when the period of time for which the contract was made expires and where the piece of work specified in the contract has been completed.
- Termination of Notice
This refer to a contract of service is intentionally terminated by one party giving notice to the other party. This notice must be in writing and the length of notice is provided in the employment contract. (Note: The length of notice of termination is stated in Employment Act 1955).
- Termination Without Notice
A contract of service may be terminated by either party without notice or if notice has already been given without waiting for the expiry of that notice by payment of an “indemnity” to the other party of a sum equal to the amount of wages which would have accrued to the employee during the period of such notice or during such a period prior to the expiry date of such notice (as the case may be). A contract of service may also be terminated without notice by either party in the event of a “willful breach” by the other party of an important term and condition of the contract.
- Termination for Special Reasons
An employer can “dismiss without notice” an employee for misconduct (terminate the contract of service) but under the Employment Act 1955 an employer may do so only after “due inquiry” e.g. a proper domestic enquiry. An employee can also terminate the contract under special circumstances.
Statues and Regulation
Employment Act 1955 and its Regulations
Industrial Relations Act 1967 and its Regulations
Related Web
http://www.mohr.gov.my
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