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 Question About Offer Letter & HR (Labour Law)

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TSspider4567
post Sep 17 2018, 10:35 PM, updated 6y ago

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I'm just curious can employer have an offer letter like that in Malaysia Labour Law.

1. The offer letter that i signed stated that if i resign from my current company, i would not allow to work at current company's competitors for 2 years. Is this legal?

2. HR implement rules that if employee are late than 9.30am, e.g. 9.31am, the staff will get half day annual leave deducted. (you can go walk around till lunch only come back). Is this legal?
Orzie
post Sep 17 2018, 10:53 PM

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QUOTE(spider4567 @ Sep 17 2018, 10:35 PM)
I'm just curious can employer have an offer letter like that in Malaysia Labour Law.

1. The offer letter that i signed stated that if i resign from my current company, i would not allow to work at current company's competitors for 2 years. Is this legal?

2.  HR implement rules that if employee are late than 9.30am, e.g. 9.31am, the staff will get half day annual leave deducted. (you can go walk around till lunch only come back). Is this legal?
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For question 1, I'm pretty sure very few people is following it.
I have seen CEOs or Senior Managers from MNCs jumping ship to competitor's.
So if the top rank positions are not constrained, doubt the lower ones would.
Furthermore personally I think a company has no right to "monopolize" you, unless you are tied to a bond or something.

As long as you are not leaking any trade secret/confidential info that is.
ab123
post Sep 17 2018, 11:18 PM

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A simple rule to note to yourself, if you SIGN anything, it means you have AGREED to the contract terms and the law can't really help you much.
WaterBuffalo
post Sep 18 2018, 01:26 AM

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#1 is what they call a non-compete clause. Common for manufacturing and consulting companies. They don’t want you to disclose trade secrets to their competitors. Archaic but completely legal as you agreed to it when you sign the employment agreement.
jonn zee
post Sep 18 2018, 01:05 PM

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Yup. All answers above are correct....

It's an offer, once u signed the acceptance, means u accept all the terms n conditions. As long as the T&C doesn't contravene any laws, then it's legal and binding.
SUSazhan82
post Sep 18 2018, 01:07 PM

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both legal...
especially if you signed the dotted line...
fuzzy
post Sep 19 2018, 07:15 PM

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Seriously people, stop giving wrong advice.

Non compete clauses are non efforcable in Malaysia, regardless of whatever a company made you sign. If you resign, you are free to join anyone even your closest competitor.

You are however not allowed to disclose or reveal confidential information from your previous employer because your ex employer can sue for that.


cfa28
post Sep 20 2018, 01:04 PM

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Non competitive clauses have been ruled to be ultra virus vires against the Law and there was a Federal Court decision a few years ago.

However this requires time and money to challenge in Court and does TS have the resources to fight if his ex employer decides to enforce it.

My simple advice is NOT to join such companies unless you are desperate for a job

https://dnh.com.my/if-i-cant-have-you-nobod...ment-contracts/

http://www.conventuslaw.com/report/malaysi...case-employees/

This post has been edited by cfa28: Sep 20 2018, 01:20 PM
chickenshit36
post Sep 21 2018, 10:47 AM

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QUOTE(fuzzy @ Sep 19 2018, 07:15 PM)
Seriously people, stop giving wrong advice.

Non compete clauses are non efforcable in Malaysia, regardless of whatever a company made you sign. If you resign, you are free to join anyone even your closest competitor.

You are however not allowed to disclose or reveal confidential information from your previous employer because your ex employer can sue for that.
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This.
I signed it before and did research. I was a telco engineer and that clause basically will make me jobless for 2 years. That clause they can put it there but if they try to enforce it or bring you to court it will get thrown out.
That said, when I resigned I just kept quiet on where I was going. They ask just say I’m taking a break and see how or I found a better opportunity elsewhere.
airtawarian
post Sep 21 2018, 08:36 PM

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QUOTE(ab123 @ Sep 17 2018, 11:18 PM)
A simple rule to note to yourself, if you SIGN anything, it means you have AGREED to the contract terms and the law can't really help you much.
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Nonsense advise. Please read more before giving Wrong advise
heliozguard
post Sep 22 2018, 10:11 AM

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Got the same thing in my contract, specific list of company that i can't join. Just remember this is Malaysia, we got millions of law but zero enforcement.

 

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