QUOTE(Monsterjin @ Aug 13 2009, 09:58 AM)
Retrenchment benefit is calculated base on base salary x number of years of service x bonus factor (a number that they think is suitable, e.g. 1.5 for exec, 2.0 for low paid salary), e.g. 1.5k x 6 years of service x 1.5
Is that statutory? I can't find anything of that sort in the EA. All I can find is:
four weeks for employees with less than two years of service;
six weeks for employees with two to five years of service; and
eight weeks for employees with more than five years of service.
So if TS company retrenches staff and pays them 2 months for their notice period it does seem like they've already fulfilled the mandatory payment as per EA.
 sorry, looked at the wrong thing.
Severance pay in Malaysia is known as retrenchment benefits, or termination and lay-off benefits, which are paid at the following rates:
10 days wages for each year of service for employment shorter than two years;
15 days wages for each year of service for employment longer than two years but shorter than five years; and
20 days wages for each year of service for employment of five years or longer.
This is spelt out in the EA, which only applies to "All workers whose earnings do not exceed RM1,500 a month and all
manual workers irrespective of their earnings
However I've heard that the EA has been amended to cover all employees in Malaysia, and so the RM1.5k limit doesn't apply anymore. Of course I'm no labor law expert, so feel free to correct me.This post has been edited by deodorant: Aug 13 2009, 11:57 AM