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Home / Malaysia Employment & Labor Law / Benefits, EPF, Pensions & SOCSO
Employees' Benefits
Reduction of Benefits

New MessageEmployees' Benefits (modified 0 times) C.M.
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Good day,
My company HR dept has changes numerous benefits that have enjoyed by the staffs all these years. Namely :

1. We used to enjoy all the public holidays that are available in KL. BUt as of 10 Nov 2004, they have been reduced to 10 days only (conveyed as below inour new employee handbook) :

Quote
1.3.2 Public Holidays
All employees shall be entitled to a paid holiday at his ordinary rate of pay on only ten of the following gazetted public holidays observed by the Company in any one calender year:-

- National Day *
- The Birthday of the Yang Di-Pertuan Agong *
- Worker's Day *
- Birthday of Sultan or Head of State or Federal Territory Day *
- New Year's Day **
- Chinese New Year
- Hari Raya Puasa
- Hari Raya Haji **
- Deepavali
- Christmas
- Wesak **
- Awal Muharram **
- Birthday of Prophet Mohammad S.A.W **
* Four (4) compulsory gazetted public holidays that shall be included in the ten gazetted holidays observed by the Company as stipulated in the Employemnt Act 1955.

** Additional gazetted public holidays.

Any additional gazetted public holidays other than the ten gazetted public holidays observed by the company is at the discretion of the management and this will be communicated to the employees accordingly.

Any special public holiday announced by the Prime Minister, the King or a Sultan is usually not gazetted and therefore, the company is not obliged to grant such holidays entitlement to the employees. Such granting of holiday entitlement to employees is at the discretion of the Company.

Unquote

Question : Do they have the right to reduce the number of holidays that we have been enjoying for the past 10 yrs? I know it is weird, one company should be looking forward, not backward .


2. Termination period - some of our employment contract stated with one month notice period. BUt the latest change is:

Quote
Termination notice for IT Executives…..three (3) months written notice with no buy out option
Unquote

Question : This is dilemma to some of us, which condition should we now stick to? To our previously agreed employment contract or this new ruling? If we do not make noise to our boss, do they deem us as being silence as consenting to their demand?

3. Leave days

Quote
i. The number of study/exam leave days granted for preparation studies and examination days (inclusive) will be one (1) day per paper to a maximum of five (5) days in any one year……instead of previous ‘eight (8) days’.

ii.Compassionate Leave is now revised to a maximum of two (2) days paid leave……instead of previous ‘three (3) days’.
Unquote

Question : Again, do they simply change this benefits as and when they like?


All in all, I would like to know as an employee here..what should we do to voice out our grievances with merits? Are we protected by the law that our benefits could not be simply reduced without just cause nor any approval form the employees beforehand.

I do hope to hear from you soon.

Thanking you in advance.
C.M.

20 Nov, 2003 19:01:35

New MessageRE:Employees' Benefits (modified 0 times) IRADVICE
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There are many reasons why benefits are reduced. During a period of recession it is better to accept reduction in benefits to save jobs. i do not know the reasons for yr company's decision. You are in a better position to know that.

I believe these questions have been posed many times and replied many times. to set the record straight - yr employer has the right to change terms of the contract. It is up to you to accept them or reject them. If you are unhappy why not look for an employer who will provide better benefits.You can't say the employer has breached the contract unless the breach is serious enough like going to the very root of the contract.

On special holidays declared by the PM King or Sultan if they are gazetted subsequently they are to be reckoned as holidays.

2.On notice period the subsequent variation would apply.

3.Exam/compassionate leave - company has the right to vary them.If you are unhappy you can discuss with the employer.A contract is a two way process.The employer agrees to pay you wages (consideration) in return for the work you contract to provide.If the employer reduces your wages, transfers you to another place when the contract is silent on transfers or changes your designation to your detriment, then it is a breach of the contract and you can consider the contract has come to an end. But if they relate to insignificant terms the employer need only inform you before hand. If you are not happy you should look for a different employer who will provide you with the satisfaction.

If you resign for trivia the courts will not lend you support especially if the employer has cogent reasons for the reduction/change.

Be objective, find out why the changes are coming about - are employees abusing the system? Is it onerous on the company in view of escalating costs or reduction in profits? Then make a decision.

iradvice


Visit Industrial Relations Network for dedicated employment advice.
22 Nov, 2003 00:24:49


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