Genuine redundancy and retrenchment compensation: an analysis of Malaysian law

Retrenchment is a process to discharge the surplus labour arising due to various factors which renders the services of the redundant worker no longer needed by the employer. This might happen firstly, when the business itself ceases to operate or the business no longer exists, secondly, when the pla...

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Main Authors:	Ali Mohamed, Ashgar Ali, Ishan Jan, Mohammad Naqib, Ahmad, Muhamad Hassan, Kasi, Arun
Format:	Article
Language:	English
Published:	International Organization Center of Academic Research (OCERINT) 2018
Subjects:	K Law (General) KPG Malaysia
Online Access:	http://irep.iium.edu.my/69397/ http://irep.iium.edu.my/69397/ http://irep.iium.edu.my/69397/ http://irep.iium.edu.my/69397/1/69397_Genuine%20redundancy%20and%20retrenchment.pdf

id	iium-69397
recordtype	eprints
spelling	iium-693972019-07-10T01:48:33Z http://irep.iium.edu.my/69397/ Genuine redundancy and retrenchment compensation: an analysis of Malaysian law Ali Mohamed, Ashgar Ali Ishan Jan, Mohammad Naqib Ahmad, Muhamad Hassan Kasi, Arun K Law (General) KPG Malaysia Retrenchment is a process to discharge the surplus labour arising due to various factors which renders the services of the redundant worker no longer needed by the employer. This might happen firstly, when the business itself ceases to operate or the business no longer exists, secondly, when the place where the employee was contracted to work disappears, thirdly, the job itself disappears and fourthly, when less employees are needed to do the same job while the job still exists. All these are brought about because of change in business as times are not always booming in the business world. In a genuine redundancy situation, it is pertinent for the employer to pay retrenchment benefits or compensation to the affected workers in order that they are able to cope with immediate aftermath of retrenchment. The retrenchment payment is a minimum sum paid to the employee based on the length of service for loss of the job. Having said the above, this paper will seek to discuss genuine redundancy and the retrenchment compensation with reference to the law and practice in Malaysia. Here, unlike some developed countries such as the United Kingdom, not all workers will be eligible for the compensation in the event their services are no longer required by the organisation due to genuine redundancy in the organisation. Hence, this paper will, apart from discussing what it means by ‘genuine redundancy’ and ‘retrenchment compensation’ from the Malaysian perspective, will also propose reform of the existing law to accord retrenchment compensation to all workers affected by the retrenchment. International Organization Center of Academic Research (OCERINT) 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/69397/1/69397_Genuine%20redundancy%20and%20retrenchment.pdf Ali Mohamed, Ashgar Ali and Ishan Jan, Mohammad Naqib and Ahmad, Muhamad Hassan and Kasi, Arun (2018) Genuine redundancy and retrenchment compensation: an analysis of Malaysian law. International E-Journal of Advances in Social Sciences (IJASOS), IV (12). pp. 658-663. E-ISSN 2411-183X http://ijasos.ocerintjournals.org/issue/41230/476459 https://dx.doi.org/10.18769/ijasos.476459
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	K Law (General) KPG Malaysia
spellingShingle	K Law (General) KPG Malaysia Ali Mohamed, Ashgar Ali Ishan Jan, Mohammad Naqib Ahmad, Muhamad Hassan Kasi, Arun Genuine redundancy and retrenchment compensation: an analysis of Malaysian law
description	Retrenchment is a process to discharge the surplus labour arising due to various factors which renders the services of the redundant worker no longer needed by the employer. This might happen firstly, when the business itself ceases to operate or the business no longer exists, secondly, when the place where the employee was contracted to work disappears, thirdly, the job itself disappears and fourthly, when less employees are needed to do the same job while the job still exists. All these are brought about because of change in business as times are not always booming in the business world. In a genuine redundancy situation, it is pertinent for the employer to pay retrenchment benefits or compensation to the affected workers in order that they are able to cope with immediate aftermath of retrenchment. The retrenchment payment is a minimum sum paid to the employee based on the length of service for loss of the job. Having said the above, this paper will seek to discuss genuine redundancy and the retrenchment compensation with reference to the law and practice in Malaysia. Here, unlike some developed countries such as the United Kingdom, not all workers will be eligible for the compensation in the event their services are no longer required by the organisation due to genuine redundancy in the organisation. Hence, this paper will, apart from discussing what it means by ‘genuine redundancy’ and ‘retrenchment compensation’ from the Malaysian perspective, will also propose reform of the existing law to accord retrenchment compensation to all workers affected by the retrenchment.
format	Article
author	Ali Mohamed, Ashgar Ali Ishan Jan, Mohammad Naqib Ahmad, Muhamad Hassan Kasi, Arun
author_facet	Ali Mohamed, Ashgar Ali Ishan Jan, Mohammad Naqib Ahmad, Muhamad Hassan Kasi, Arun
author_sort	Ali Mohamed, Ashgar Ali
title	Genuine redundancy and retrenchment compensation: an analysis of Malaysian law
title_short	Genuine redundancy and retrenchment compensation: an analysis of Malaysian law
title_full	Genuine redundancy and retrenchment compensation: an analysis of Malaysian law
title_fullStr	Genuine redundancy and retrenchment compensation: an analysis of Malaysian law
title_full_unstemmed	Genuine redundancy and retrenchment compensation: an analysis of Malaysian law
title_sort	genuine redundancy and retrenchment compensation: an analysis of malaysian law
publisher	International Organization Center of Academic Research (OCERINT)
publishDate	2018
url	http://irep.iium.edu.my/69397/ http://irep.iium.edu.my/69397/ http://irep.iium.edu.my/69397/ http://irep.iium.edu.my/69397/1/69397_Genuine%20redundancy%20and%20retrenchment.pdf
first_indexed	2023-09-18T21:38:30Z
last_indexed	2023-09-18T21:38:30Z
_version_	1777412981636726784

Genuine redundancy and retrenchment compensation: an analysis of Malaysian law

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