I have compiled various Frequently Asked Question on Resignation from the net.
FAQ 1
| Unutilised Leave Balance |
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| Question | Let’s say, I would like to tender my resignation on 21 Aug with 30 days notice. Counting until 30 days, last day will be 19 Sept. I have 4.5 days of annual leave balance. In between 21 Aug till 19 Sept, there will be 8 days of rest day + off day (saturday is not a working day) and 1 day of public holiday. After contra with the Annual leave, rest day, off day and public holiday (total of 13.5 days), my last working date will be 6 Sept. If my employer does not want to contra with all the 13.5 days, do they have to pay me back all the 13.5 days? |
| Answer | Your notice period is 30 days and this means that the company does not have to contra the rest days, off days or public holidays. As far as they are concerned, your last day will be September 19, 2006. |
FAQ 2
| Salary Hold/not paid |
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| Question | Does my ex-employer have right to hold my last month salary due to balance outstanding on my credit card (credit card issued by the employer as the employer is the bank). They inform me that they are unable to convert my credit card from staff to normal consumer. — Afdan |
| Answer | Did the bank have any conditions that they made you sign when you applied for the credit card? The bank may have a case as they can state that they are extending you a loan in effect if your card cannot be processed as a normal consumer. |
FAQ 3
| Unutilised Leave Balance on early release |
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| Question | If a resigning employee asks for early release and the company is agreeable, is it in order if the company does not pay him in lieu of any leave not taken and/or not allow him to take any more leave? |
| Answer | If the company has agreed to early release then the company has to pay for all leave due. |
FAQ 4
| Unutilised Leave Balance on early release |
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| Question | Further to the query on the early release question above, if the employee concerned is agreeable to forgo his leave then is it in order? |
| Answer | As long as it is in writing. |
FAQ 5
| Unutilised Leave Balance |
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| Question | If nothing is stated in my contract, how far am I allowed to carry forward my annual leave to the following year? If, for example, I have 10 days of leave left from 2005 and resign now, does my employer need to pay me for leave not taken upon my resignation? |
| Answer | This is as per your company policy (see what is stated in your employee handbook on this matter). As far as the 10 days’ annual leave is concerned, you can elect to ask the company to either pay you in lieu of you it, or you can take this leave and deduct it from your notice period to the company. |
FAQ 6
| Resignation approval |
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| Question | I am trying to resign from my company but I have been told by my HR department that I would need my director’s signature on my resignation letter before they can accept it. My director refused to sign and he even said that if I just pass it to the HR without his approval, they have the right to sue me even if I have given them a month’s notice. Is there such a thing? |
| Answer | No, unless this is specifically stated in your appointment letter, the company has no right to impose the requirement that it needs a director’s signature before it can accept your resignation. As far as you are concerned, all you need to do is serve your notice period. They cannot sue you if you have served your notice period. |
FAQ 7
| Indemnity in lieu of notice |
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| Question | I have just resigned from my current job and according to my employment offer letter, I need to give three months’ notice. As I need to start the next job immediately, I intend to leave my current company before the three months expire. Although I have discussed with my boss that I intend to settle the balance of unserved notice period, my boss said I was not allowed to do that as the settlement from my side needs agreement from his side.
However, after checking my employment letter, this agreement was not stated. It only states: “Termination of service by either party shall be by giving three months’ notice in writing or three months’ salary in lieu of notice.” What should I do? I do not intend or have the motivation to stay until the notice period ends. Can I prepare a cheque and send it to HR when I leave? In this case, how much do I need to pay back? All three months or the balance of the unserved notice period? |
| Answer | If you would like to settle this matter amicably, then I suggest you only pay your employer back the balance of the unserved notice period. This is fair as you are serving some of the three-month notice and should therefore only compensate your employer for the unserved portion. |
FAQ 8
| Denied benefits before resignation |
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| Question | Upon my last day in the company, I still had about 10 days annual leave left. The company paid a certain amount (based on pay per day multiplied by number of annual leave days) for the balance of leave to employees who left the company earlier.
In my case, I didn’t get one sen. The company also forfeited all my outstation allowance for the last few months before I left and held my final salary for nearly 1.5 months before releasing it. Actually this happened two years ago. I did go to the Labour Office to file a complaint but later on, they denied my case as my basic salary was above RM1,500. What I want to know is whether it’s true that there is no law to protect anyone who earns more than RM1,500 as told by the Labour Office which told me that my case was out of their jurisdiction. Please advise, thank you. — Shortchanged |
| Answer | Since 1998, the law has been amended and employees earning up to RM5,000 can go to the Labour Office to make a complaint that their employer has not paid them their wages, allowances, bonus, etc. The Director General of Labour can then make an order against your employer, requiring them to pay you your dues. If you earn more than RM5,000, you have to sue your employer directly in the higher courts. |
FAQ 9
| Can employer hold/retains resigned staff salary |
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| Question | Can employer hold staff salary pending settlement of any outstanding matters such as staff loan, festival advance etc ? |
| Answer | In general,all salary must be paid within 7 days after the end of the salary period.The following are exception:
The termination by Employee,
An for the employee’s entitlement to allowance and commission payment and the time of allowance and commission payment would depend on what is stated in the employment contract or existing policies/practices. If the contract is silent, it is subject to negotiation or mutual agreement between the employee and the employer. |
FAQ 10
| Wages for staff who resigned on 24h notice. |
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| Question | In the case outlined below, the staff under the terms of his contract, is deemed to have failed to serve the required 24-hour notice whilst under probation because he served notice less than the 24-hours. As such, we do not need to pay him his 1-day’s wages.
Advice needed on the following scenario:- 1. New recruit reports for duty say 1/2/2009. Notice of Termination
My concerns whether he is entitled to salary for his one day work. |
| Answer | In the case outlined below, the staff under the terms of his contract, is deemed to have failed to serve the required 24-hour notice whilst under probation because he served notice less than the 24-hours. As such, we do not need to pay him his 1-day’s wages. |
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