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 how to terminate a contract worker's contract

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TSstonar
post Apr 30 2017, 12:41 PM, updated 7y ago

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I employed a local malaysian as security based on contract. right now times are bad and maybe want to terminate his contract and thought of paying a lil for my existing foreign worker to look around the factory.


By law how should i terminate this local guy's contract and how much compensation to pay? anyway the contract is just based on verbal when he first came..

This post has been edited by stonar: Apr 30 2017, 12:43 PM
avrilmae
post Apr 30 2017, 08:14 PM

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Hi, it will depend on whether yr contract with the security guard is an employment contract or a contract for services.
Termination of employment contract and compensation are regulated under the Employment Act if the worker's salary does not exceed the threshold of Rm1,500/month (there's a schedule of compensation for retrenchment due to redundancy), whereas contract for services is generally regulated under the Law of Contract, and is dependent on the terms you have agreed upon with him.
Whatever it may be, the best thing is to talk to him nicely and openly and agree on a reasonable notice of termination.
Good luck!
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TSstonar
post May 1 2017, 07:20 PM

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QUOTE(avrilmae @ Apr 30 2017, 08:14 PM)
Hi, it will depend on whether yr contract with the security guard is an employment contract or a contract for services.
Termination of employment contract and compensation are regulated under the Employment Act  if the worker's salary does not exceed the threshold of Rm1,500/month (there's a schedule of compensation for retrenchment due to redundancy), whereas contract for services is generally regulated under the Law of Contract, and is dependent on the terms you have agreed upon with him.
Whatever it may be, the best thing is to talk to him nicely and openly and agree on a reasonable notice of termination.
Good luck!
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Hmm.. i think it should be contract for services as he is not paid sosco and epf.. am I correct? There's no written contract.
avrilmae
post May 1 2017, 09:43 PM

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QUOTE(stonar @ May 1 2017, 07:20 PM)
Hmm.. i think it should be contract for services as he is not paid sosco and epf..  am I correct? There's no written contract.
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Yes. Normally you don't have to pay sosco and epf to the worker with whom you have entered a contract for services, be it written or oral.

 

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