INDUSTRIAL RELATION IN MALAYSIA

Situation 1

Hi, we have an employee who is now 65 year old and been with the company for more than 15 years as a clerk. Unfortunately, previous employment letter do not state retirement age. We are now implementing HR policies and would like to let her go. Termination notice currently is one month but we are planning to offer six months' notice instead under a new employment contract. Is that fair? What is the best way to inform her on this decision legally?

 

Yes. I think it is fair since he/she is in retirement age. Eventhough the last HR Policies stated about the no retirement age. I think it is time to approach but ask him/her politely. You need to call the attention of the employee and tell them the new policies and state what is your plans on his/her retirement after the six month of the last contract. Give also the right and approriate amount since he/she was working in a long run of the business. I think he/she will understand that. We all know we don't want to comprise the business. Eventhough he/she was saying I'm still good and I can still worked my job. But you need to consider the side of the business.

Right Retirement fee is the best way.

Step-by-step explanation

In decision making you need to weigh in the pros and cons. What is right and not. We need also to adopt the new policies .We need to consider different factors and the ability of the employee to perform the given task. Many of us can't decide what is right especially in this kind of scenario. You need to follow the new rules of the company, since you are working in one firm. You can also released a new memo stating the new rules and policies of the company. Surely employee will understand that.