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During this current economic crisis due to COVID-19 pandemic, many companies are forced to look at cost reduction in doing business and one of ways is to reduce labour cost. Besides retrenching their employees, companies are exploring cost cutting measures such as reduction in working days and encouraging employees to take annual leave or unpaid leave. As a last resort, companies may have to conduct a retrenchment exercise if other cost cutting measures fails. Retrenchment is the termination of employment of an employee or a group of employees due to a redundancy situation arising from a reorganization of business where certain positions are eliminated to cut cost. Other terminologies of firing employees due to redundancy, such as downsizing, right sizing and workforce reduction has been used widely. It is common to have employees disputing the employer’s decision to retrench. The uninformed employers also risk running foul of the law when they failed to comply with proper retrenchment procedures. NSB/17/2020 MANAGING PAY REDUCTION, LAY MANAGING PAY REDUCTION, LAY MANAGING PAY REDUCTION, LAY-OFFS, OFFS, OFFS, RETRENCHMENT, VSS & MSS RETRENCHMENT, VSS & MSS RETRENCHMENT, VSS & MSS July 16, 2020 (Thursday) 9.00am – 5.00pM fmm ns branch, S2 June 18, 2020 FMM NS SEMINAR ON Course Contents Introduction Redundancy & Retrenchment Defined Things to consider before retrenching employees Wage Subsidy Program & retrenchment Unpaid leave as a cost cutting measure Pay Reduction Retrenchment Principles (LIFO) Retrenchment of unionized employees Voluntary Separation Schemes (VSS) Mutual Separation Schemes (MSS) Calculation of Retrenchment Benefits Courts Awards At the end of the programme, the participants will: Have a better understanding of provision in the Employment Act 1955 in relation to Lay-offs & Retrenchment Acquire knowledge and best practices on how to apply those relevant sections of the law especially during retrenchment Be aware of the Dos and Don’ts of Retrenchment Procedures Ensure that policies implemented in their organizations do not flout the laws of the various legislations in the country Who Should Attend HR/Admin Managers, Executives, Personal Administration, Officers and any other staff who are interested to attend the workshop. For enquiries, kindly contact: FMM Negeri Sembilan Branch, Ms. Herdawaty, [email protected] / Ms. Niza, [email protected] Tel: 06-603 1626/1616 Fax: 06-603 1628 Participation Fee (fee is inclusive of SST at 6%) Members : RM 551.20 per pax Non-Members : RM 689.00 per pax 5% Discount for Group Registration of three (3) or more participants from the same company. Objectives *FMM will strictly observe the SOP from the Naonal Security Council (NSC) related to the COVID-19 pandemic during the training.

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Page 1: MANAGING PAY REDUCTION, LAY OFFS, RETRENCHMENT, VSS & MSS 16, 2020 - MAN… · Company Stamp FMM NS SEMINAR ON MANAGING PAY REDUCTION, LAY-OFFS, RETRENCHMENT, VSS & MSS Upon faxing/mailing

During this current economic crisis due to COVID-19 pandemic, many

companies are forced to look at cost reduction in doing business and one of

ways is to reduce labour cost. Besides retrenching their employees,

companies are exploring cost cutting measures such as reduction in

working days and encouraging employees to take annual leave or unpaid

leave. As a last resort, companies may have to conduct a retrenchment

exercise if other cost cutting measures fails.

Retrenchment is the termination of employment of an employee or a group

of employees due to a redundancy situation arising from a reorganization

of business where certain positions are eliminated to cut cost. Other

terminologies of firing employees due to redundancy, such as downsizing,

right sizing and workforce reduction has been used widely.

It is common to have employees disputing the employer’s decision to

retrench. The uninformed employers also risk running foul of the law when

they failed to comply with proper retrenchment procedures.

NSB/17/2020

MANAGING PAY REDUCTION, LAYMANAGING PAY REDUCTION, LAYMANAGING PAY REDUCTION, LAY---OFFS, OFFS, OFFS, RETRENCHMENT, VSS & MSSRETRENCHMENT, VSS & MSSRETRENCHMENT, VSS & MSS

July 16, 2020 (Thursday) 9.00am – 5.00pM fmm ns branch, S2

June 18, 2020 FMM NS SEMINAR ON

Course Contents

Introduction

• Redundancy & Retrenchment Defined

• Things to consider before retrenching employees

• Wage Subsidy Program & retrenchment

• Unpaid leave as a cost cutting measure

• Pay Reduction

• Retrenchment Principles (LIFO)

• Retrenchment of unionized employees

• Voluntary Separation Schemes (VSS)

• Mutual Separation Schemes (MSS)

• Calculation of Retrenchment Benefits

• Courts Awards

At the end of the programme, the participants will:

Have a better understanding of provision in the

Employment Act 1955 in relation to Lay-offs &

Retrenchment

Acquire knowledge and best practices on how to apply

those relevant sections of the law especially during

retrenchment

Be aware of the Dos and Don’ts of Retrenchment Procedures

Ensure that policies implemented in their organizations do

not flout the laws of the various legislations in the country

Who Should Attend

HR/Admin Managers, Executives, Personal

Administration, Officers and any other staff who are

interested to attend the workshop.

For enquiries, kindly contact: FMM Negeri Sembilan Branch, Ms. Herdawaty, [email protected] / Ms. Niza, [email protected]

Tel: 06-603 1626/1616 Fax: 06-603 1628

Participation Fee (fee is inclusive of SST at 6%) Members : RM 551.20 per pax Non-Members : RM 689.00 per pax

5% Discount for Group Registration of three (3) or more participants from the same company.

Objectives

*FMM will strictly observe the SOP from the National Security

Council (NSC) related to the COVID-19 pandemic during the training.

Page 2: MANAGING PAY REDUCTION, LAY OFFS, RETRENCHMENT, VSS & MSS 16, 2020 - MAN… · Company Stamp FMM NS SEMINAR ON MANAGING PAY REDUCTION, LAY-OFFS, RETRENCHMENT, VSS & MSS Upon faxing/mailing

REGISTRATION FORM

FMM Negeri Sembilan Branch Fax : 06-603 1628 Please Tick (/)

Name Designation Email Vegetarian

Meal

1. __________________________________ _________________________ ____________________________

2. __________________________________ _________________________ ____________________________

3. __________________________________ _________________________ ____________________________

Payment:

Full payment of RM___________ will be made via Cheque/bank draft Direct bank-in

Please Tick (/) FMM Member FMM Membership No :

Submitted By: NON– Member

Name : _________________________________________________ Designation : __________________________________

Company : ____________________________________________________________

Address : _____________________________________________________________

_____________________________________________________________________

Tel : ________________________________ Fax : ___________________________

Email : _____________________________________________ Company Stamp

FMM NS SEMINAR ON

MANAGING PAY REDUCTION, LAY-OFFS, RETRENCHMENT, VSS & MSS

Upon faxing/mailing the completed Registration Form to FMM, you are deemed to have read and accepted the terms and conditions. The program would also be deemed as confirmed unless informed otherwise.

Registration will be based on first-come-first served basis. Must be made in writing to FMM. Cheque made payable to Federation of Malaysian

Manufacturers. All registration together with the payment should be made before the event date. Certificate will only be issued upon full payment.

Malayan Banking Berhad A/C No: 505176510151

FMM’ SST Registration No: W10-1901-32000105 Full payment charged for cancellation within 2 days prior

to the programme. 50% payment charged for cancellation between 3-6 days. No payment charged for cancellation within 7 days prior to

the programme. Participants who did not turn-up will be charged full

payment. Replacement can be accepted at no additional cost. FMM reserves the right to cancel or reschedule the

program.

Closing Date : July 9, 2020

Speaker’s Profile

Heng Poh Suan is currently the Human Resource/

Industrial Relations Advisor of The Federation of

Malaysian Manufacturers. He was an Assistant

Director with the Industrial Relations Department

prior to his early retirement to join the private

sector in 2002. He started his career as a Labour

Officer in Kuala Kangsar in 1975. He left the

Industrial Relations Department in 2002 to join

Malaysian Employers Federation as their

Industrial Relations Consultant. He joined

Federation of Malaysian Manufacturers in 2005

as their Human Resource/Industrial Relations

Advisor. He had been conducting public as well as

in house training programs relating to

employment laws, discipline & misconduct and

domestic inquiry procedures for member

companies. In his current capacity in FMM, he is

advising member companies on the compliance

and implementation of the various labour

legislations, discipline issues as well as issues

arising out of their collective agreements with

their unions.

Registration & Payment

July 16, 2020 (Thursday) 9.00am – 5.00pM fmm ns branch, S2