end of contract.

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asked on Jun 30, 2001 at 01:05
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I was employed by a security seal manufacturing company (public listed company)on 1st of August, 2000 as a QA Executive. But, unfortunately the company retrenched me and shut down the whole manufacturing because the factory was being relocated to Rayong, Thailand on 15th November, 2000. I received the compensation from the company which are:
1)entitlement in accordance with the Employment Act 1955 and the Employment (termination and lay-off benefits) regulations 1980.
2)ex-gratia payment of basic salary
3)payment in lieu of one month's notice

Then, on the 30th November, 2000 I was given a 'Fixed Term Contract as a Quality Consultant' for a period of 2.5 months commencing from 15th November, 2000 till 31st January, 2001 whereby my salary remain the same as when I was first being employed in 1st August, 2000. The company made satutory contributions to the EPF and Socso. The contract stated that I will be given 3 days annual leave and either party may terminate this contract by giving the other party one month written notice or remuneration in lieu thereof.

However, when the contract expired on 31st January, 2001 the company still request me to go Thailand for QA consultancy for one month and when I come back to Malaysia at the end of every month the company still pay me my salary. This has been going on until in March, 2001 then I decided to request for an appointment letter or a renewal of my contract. But, the company told me to wait for awhile for preparing the new contract and meanwhile not to worry cause they still pay me every end of the month. The company had been saying the same thing whenever I raise this topic up. I felt insecure since my previous fixed-contract had expired and worry that they might just terminate just like that.

Then finally, in April, 2001 (in Malaysia) I voice up to my Executive Director (my superior - by the way, I report to the COO of the company) that I plan to resign but the COO and the Manufacturing Executive Director requeted me to do them a favour in helping out with the ISO certification at the company in Malaysia (still a public listed company but had changed the name since the old name had been shut down and relocated to Thailand) until around June, 2001.
The COO was angry and upset at this time and asked me what he should do right now since I have voiced out that I want to resign. So, I told him to employ a new QA Executive so that I can train the new staff on how to do the ISO job. But, till to-date, he still did not employ anybody for me to train.

Meanwhile, the company still continue sending me to go to Thailand for QA consultancy. Then, I started looking for a new job since the company still does not offer me any contract renewal from the previous contract which ended on 31st January, 2001. While I was in Thailand, my COO e-mail to me and asked me whether I would like to continue the contract or not. I answered 'yes' since I still do not have a new job in Malaysia. When I finally came back to Malaysia in middle of May, 2001 I finally got a new job in Shah Alam. After doing my best writting up all related ISO documents I tendered my resignation letter to the HR and COO on 19th June, 2001 and stated that my service will end on 22th June, 2001. I still have 7 days annual leave (not taken) till to-date according to my HR.

Suddenly, the HR printed out my new contract which stated my salary had been revised and the contract is until end of December, 2001. I was surprised cause I thought there will never be a contract renewal cause after I answered the e-mail from my COO last month until the day I tendered my resignation letter (which was about one month after I came back from Thailand!)I was never given any renewal of contract. As usual, my COO was furious and said that verbal is a contract and I have breach the new contract eventhough I did not sign the new contract. But, he kept stressing that the e-mail which I replied 'yes' is valid and is a contractual thing. For your information,when he asked me whether I would like to continue the contract or not, he did not e-mail the whole of the new contract's content for me to read. I said 'yes' in order for the HR to prepare the new contract and hopefully when I come back from Thailand I will be able to read it properly before officially accepting it.

Due to anger and not satisfied, my COO had requested the senior GM (Finance GM) to issue me a registered letter on 19th June, 2001 whereby the letter stated that although my contract had expired on 31st January, 2001, the company has offered and I have accepted by e-mail to extend the contract till 31st December, 2001. Therefore, I am required to tender a one month written notice of termination. But, due to the short notice given by me, the company request me to pay the company the equivalent on my one month's salary. And therefore, my salary for 1st to 22nd June, 2001 shall be withheld.

I would like to know whether is it true that the company can withheld my one month's salary eventhough I did not sign the new contract? Is it true that my e-mail of saying 'yes' is a contract and valid? What about my 7 days annual leave... will I paid for it or am I not entitle for claiming it back from my company? Do I really need to give one month notice eventhough my contract had ended on 31st January, 2001.

Please help and advise me cause I am confused. Thank you.

Miza
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1 Answers
answered on Jul 4, 2001 at 00:11
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double posting, pls read the other reply.
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