Contract of service / Contract for service

Sunday, 23 September, 2012 1:49 PM

Contract of service
1. What is contract of service? - A contract between an employer and an employee, whereby the employee agrees to work for the employer. 2. S2 EA1955 c.o.s defines - Any agreement, whether made orally or in written, expressed or implied, whereby one person agrees to employ another as his employee and that other agrees to serve his employer as employee and includes an apprentice contract. - Therefore, a contract doesn’t necessary needs to be in writing.

3. S10(1) a contract of service for a specified period of time exceeding one month; or for a specific piece of work where the time reasonably required to for completion of the work exceeds or may exceed one month shall be in writing
4. Industrial Relations Act 1967 defines contract of employement: - Any agreement whether made orally or writing, expressed or implied, whereby one person agrees to employ the other as his workman, and the other agrees to serve his employer as a workman.

• It is generally accepted that there are no distinction btwn the 2 (EA 1955 & IRA 1967) phrases • Therefore only a c.o.s will give rise to a employer/employee r/s; which is regulated by the EA & IRA. • An em-er&em-ee r/s must exist before an employer is made vicariously liable for the negligent acts of his employee done in the course of his employment. ( Vicariously: Acting or serving in place of someone or something else; substituted.)

Why is it important to distinguish c.o.s&c.4.s

Contract 4 service
1. 2. 3. 4. 5. Does not cr8 em-er/em-ee r/s. Therefore, does not come under the purview of the EA1955&IRA1967 Term used are usually principal & independent contractor Principal is not liable for the torts committed by the independent contractor. There are certain exceptions to this strict rule.

Test Determining Contract of Service
1. a. b. c. Courts developed 3 main tests: Control test Integration test Multiple test C. Multiple test • Takes into account multiple considerations to determine • Does not rely only one single factor • They are: ○ Nature of task ○ Degree of skill required ○ Amount of freedom of action given ○ Who gives the orders and nature of the orders ○ Who has the power to hire and fire ○ Who provides the equipment ○ The amount of payment and the manner of payment

A. Control test - extend of control and employer had over and employee in relation to the manner in which the em-ee was to do his work. - The greater the control, the greater the possibility there was a c.o.s - Control test has been seen as inadequate, esp. in occupations of a skilled/professional nature.
B. Integration test extend to which a person can be considered as part & parcel of the org. The greater the integration, the greater the possibility there is a c.o.s. This test is not much used today. Hence question asked is whether the work done has been fully integrated into the biz?

Employment Act Page 1

Basic Duties
Thursday, 25 October, 2012 2:17 PM

DUTIES OF AN EMPLOYER (5)

Wages, provision of work & a safe system, indemnity, reference

1. Payment of wages 2. Provision of work - certain contracts where the opportunity of work is of the essence, the right to work should be implied into the contract. Ie. Actor, salesman; Further if the em-ee is paid by commission (wholly / partly) the em-er should provide work to enable the em-ee to earn the commission 3. Provision of a safe system - generally, em-er has a duty of care for the safety of his em-ees. This duty includes : a. Selection of competent staff and proper supervision b. Provide proper/safe machinery for work c. Provide a safe means of access to work Indemnify - to protect against d. Provide an overall safe system with reasonable care 4. Indemnity - employer must indemnify em-ees against all liabilities and expenses incurred in the performance of their duties 5. Reference - Generally, it's not compulsory for an em-er to provide reference for their emees. But if they do, it must be truthful. If false, em-er will be liable in several ways :a. Defamatory against em-ee : the em-ee can bring an action in defamation b. Ref is better than the em-ee is entitled - may be sue under tort of deceit c. Ref is given negligently, where em-ee is not worthy to receive one - liability of negligence may arise.
Act reasonably & co-operate, may not delegate his duties, obedience, goodfaith, access to inventions, reasonable care

DUTIES OF AN EMPLOYEE

1. To act reasonably and co-operate - the performance of their duties must not disrupt the smooth running of the organization 2. The em-ee may not delegate the performance of his duties to other person (unless given the permission ; expressed or implied ) 3. Obedience - em-ee must obey the orders given by their em-er provided that it is:a. Lawful b. within the scope of cos c. Reasonable d. Does not place them in personal danger. 4. Good faith and loyalty a. No bribes b. Disclose secret profits or interest received in the course of employment to avoid conflict of interest c. Not to divert customers' away from em-er's business 5. Access to inventions - duty to make available any product invented by him in the course of his employment. Applies when the em-ee uses the tools and machinery of the em-er, and receives proper funding from the em-er 6. Reasonable care - em-ee must display due care in the performance of his duty

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Wages, Advances, Unfavorable term, Trade Union, Hours of work, Holidays, Rest Days, Overtime Work, Annual Leave, Maternity Leave, Probation period, Sick leave, Employment of women, Increment/Bonus
Thursday, 25 October, 2012 3:15 PM

1. What is wages? S.2 of the Employment Act 1955 to mean basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service but does not include the following: a. value of accommodation, or the supply of food, fuel, light, water, medical attendance, amenity, or service b. employer’s contribution to pension fund, provident fund, superannuation scheme, retrenchment, termination, lay-off or retirement scheme, thrift scheme, or any other fund/scheme for the employee’s welfare; c. sum payable to the employee to defray special expenses incurred by nature of his employment; d. travelling allowances or value of travelling concessions; e. gratuity upon discharge or retirement; and f. annual bonus. 2. Modes of payment of wages:a. Legal tender - medium of payment allowed by law ie.paper currency and coins b. Bank - with em-ees written consent; entire payment is to be credited into a bank account/a finance co. registered under the Finance Companies Act 1969 in any part of Msia, provided that it's under the name of em-ee or an account in the name of the em-ee jointly operated with other person(s). Such method can be withdrawn at anytime as long there is a written notice (4weeks in advance). c. Payment by cheque - made payable to em-ee or to the order of the em-ee 3. Wage period - the period in respect of which wages earned by an employee are payable a. A cos shall specify a wage period not exceeding 1 month ( if not stated, then it'll be assumed to be one month ) b. Contract is deemed broken by employer if he fails to pay wages not later than the 7th day after the wage period. If cos is terminated without notice, wages shall be paid within 3 days from the day of such termination. If it's with notice, wages must be paid by the end of notice period. c. If employment is dismissed/cos terminated by em-er, then total wages (less lawful deductions) must be paid on his last day of employment d. Wages is not payable during the period when em-ee is imprisoned/attending to a court (unless as a witness on em-er's behalf) e. No deduction of wages can be made other than: i. Overpayment of wages made within 3 months of the mistake ii. Indemnity due to the em-er by the em-ee iii. Recovery of advances iv. Authorized by written law ie.socso, epf, pcb v. Upon em-ee's request (trade union, esos, payments to 3rd party, rental of accommodation provided by em-er) f. Deduction shall not exceed 50% of the em-ee monthly wages unless for: i. Indemnity ii. Unpaid amount of money due to termination of cos iii. Repayment of housing loan g. Wages has priority over other debts
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g. Wages has priority over other debts

ADVANCES 1. Advances granted to an em-ee shall not exceed his one month's wages. Exceptions:a. to enable him to purchase a house or to build or improve a house; b. To purchase land; c. to enable him to purchase livestock; d. to enable him to purchase a motorcar, a motorcycle or a bicycle; e. for any other purpose:

(i) in respect of which an application in writing is made by the employer to the Director General; (ii) which is, in the opinion of the Director General, beneficial to the employee; and (iii) which is approved in writing by the Director General, provided that in granting such approval, the Director General may make such modifications thereto or impose such conditions thereon as he may deem proper;
(5) for such other purpose as the Minister may, from time to time, by notification in the Gazette, specify either generally in respect of all employees, or only in respect of any particular employee, or any class, category or description of employees.
TRADE UNION

1. An employer cannot restrict an employee from being involved in a trade union or trade unionrelated activities. This is provided for in s.8 as follows:
‘Nothing in any contract of service shall in any manner restrict the right of any employee who is a party to such contract: a. to join a registered trade union; b. to participate in the activities of a registered trade union, whether as an officer of such union or otherwise; or c. to associate with any other persons for the purpose of organising a trade union in accordance with the Trade Unions Act 1959.’
UNFAVOURABLE TERMS

1. In a COS, any less favourable than the terms stipulated in the EA1955 are null and void. 2. A COS however may contain term which are more favorable to an em-ee than the terms specified in the EA1955
HOURS OF WORK

1. Every employee shall be allowed in each week a rest day of 1 whole day. 2. Employee who required to work during his rest day should be double paid. 3. An employee cannot be required to work: a. more than 5 consecutive hours without a period of leisure of not less than 30 minutes b. more than 8 hours in one day c. in excess of a spread over period of 10 hours in one day d. more than 48 hours in one week 4. Exceptions to the above (3) is allowed when :Employment Act Page 4

4. Exceptions to the above (3) is allowed when :a. An em-ee who's engaged in work which must be carried on continuously and requires his continuous attendance for 8 consecutive hrs ; with a condition that he has period(s) of 45 mins opportunity to have a meal b. An em-ee can be req to work more than 8hrs if the num of hrs on 1/more days of the week is less than 8. However they are still not allowed to work more than 9 hrs a day or 48 hrs in one week c. Em-ee who is engaged in shift work may be req to work more than 8hrs in one day/48 hrs in a week but the avrg num of hrs work over any period of 3 weeks shall not exceed 48 hrs per week d. Accident , actual or threatened happened at place of work e. Work , where the performance of it is essential to the life of the community f. Urgent work to be done to machinery / plant g. An interruption of work which was impossible to foresee h. Work the be performed by em-ees in any industrial undertaking essential to the economy of Msia in the IRA1967
PUBLIC HOLIDAYS

1. Employee shall be entitled to a paid holiday at his ordinary rate of pay on 10 gazetted public holidays in any one calendar year, including: • the National Day • the Birthday of the Yang di-Pertuan Agong • the Birthday of the Sultan/Head of State • the Workers' Day 2. The remaining 6 other gazetted p.hols is up to the discretion of the employer. However, these chosen holidays must be specified in the form of notice to all em-ees and displayed at the place of employment before the commencement of each calendar year. 3. Special holiday not gazetted but announced by the ahjibkor (PM), Sultan are not obligatory by the em-ers. 4. If an em-ee is req to work on any paid holiday, the employee shall be paid two days wages at the ordinary rate of pay; piece rates shall be paid twice the ordinary rate per piece. 5. For OT work carried on holidays, em-ee shall be paid at a rate which is not less than 3 times his hourly rate of pay
REST DAYS

1. Every em-ee shall be allowed in each week minimum a rest day 2. En em-er can make an arrangement for substitution of rest days, he however must prepare a roster before the commencement of the month in which the rest days fall. He has to inform the em-ee of the days scheduled as their rest days. 3. An em-ee shall not be compelled to work on a rest day unless:a. He is engaged in such a work which by reason of its nature is required to be carried out continuously or continually by 2 /more shifts. b. Accident , actual or threatened happened at place of work c. Work , where the performance of it is essential to the life of the community d. Urgent work to be done to machinery / plant e. An interruption of work which was impossible to foresee f. Work the be performed by em-ees in any industrial undertaking essential to the economy of Msia in the IRA1967
OVERTIME WORK

1. Overtime is defined as the no. of hrs in excess of the normal hours of work per day.
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1. Overtime is defined as the no. of hrs in excess of the normal hours of work per day. 2. For any overtime work carried out in excess of the normal hours of work, the employee shall be paid at a rate not less than 1.5 times his hourly rate of pay 3. Overtime limit prescribed is 104 hrs per month
ANNUAL LEAVE

4. An employee is entitled to the following no of annual leave : No of years of service with the same employer Annual Leave (no of days) >1 yr ; <2 yrs >2 yrs; <5 yrs >5yrs 8 12 16

5. Annual leave does not include rest days and gazetted holidays 6. At the request of the employer and within the em-ee's written consent, untaken annual leave may be substituted for payment 7. If the employee resign, he is entitles to a proportionate paid annual leave. The em-ee may also use the balance of his annual leave to offset the whole or part of the req. notice period.
SICK LEAVE

1. An em-ee is entitled to paid sick leave only :a. He has obtained a MC from a registered practitioner b. He has obtained a cert from a dental surgeon c. If he has informed/attempted to inform the employer of his sick leave within 48 hrs of the commencement of the sickness.
2. No of days of paid sick leave entitled to an employee in each calendar year is :-

Length of service No of days <2 yrs >2; <5 >5 yrs 14 18 22

3. If hospitalization is necessary, sick leave can be extended to 60days per cy

ANNUAL INCREMENTS, BONUS, PROMOTIONS

4. Em-ee are entitled to annual increments. Em-er may withhold such increments by way of punishment for misconduct but nor on the grounds of inefficiency Gratuitous - Given or received without cost or obligations 5. Bonus is a gratuitous payment depending on the yearly performance of an individual co. 6. Contractual bonus is a form of deferred salary and the amount is duly fixed. It has to be paid to the em-ee regardless whether the co. is making profit or not. It is part of the definition of wages 7. Promotions among em-ee have become prerogatives of the em-ers. Such prerogatives are exclusively maintained by the em-ers Prerogative = An exclusive right or privilege
EMPLOYMENT OF WOMEN

1. No female em-ee is allowed to work in any industrial or agricultural venture between 10pm - 5am 2. No female em-ee shall commence work without having had a period of 11 consecutive hrs free from work 3. No female is allowed to be employed in any underground working
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3. No female is allowed to be employed in any underground working 4. Any female employed under public service vehicles regulations 1952 may work btwn the hrs 10pm to 1 am of the following day. Notwithstanding the female em-ess are not allowed to work from 1am to 5am.
MATERNITY LEAVE AND ALLOWANCE

1. A female em-ee is entitled to at least 60 consecutive days of paid maternity leave. 2. If PH falls on maternity leave, no additional off day will be given. (meaning includes rest days and ph) 3. An em-ee is entitled up to 30 days before confinement and 30 days of after confinement of paid maternity leave. 4. Wages during paid maternity leave is calculated ad the ordinary rate of pay or at the rate of 6.00 /day; whichever is greater. 5. If the em-ee dies during her maternity leave her nominee or her legal personal rep will received the maternity leave allowance up to the date of her death 6. The em-ee cannot be terminated during her maternity leave. It's regarded as a criminal offence if the em-er do so. 7. If after the expiry of her 60days maternity leave, she is still absent from work due to medically unfit for work, she cannot be terminated until she exceeds 90 days after end of her maternity leave
EMPLOYEES ON PROBATION

1. Em-ee may have to go through a period of probation as skill and qualification alone is not enough to measure whether the em-ee is suitable for the job he is engaged to 2. In a COS , it's common to find a clause in the contract like "during the probationary period, either party may at any time terminate the COS w/o notice. " 3. However, employers must before terminating the employee provide :a. Training in the job the em-ee suppose to do b. After due training, if he is not able to perform the em-er must verbally warn him, and then in writing or extension of the probationary period if problem still persist c. If no improvement, he /she must be told to do when probationary period expires d. A probationer may seek redress from wrongful dismissal if hs feels that he is terminated w.o just/cause e. Em-ee on probation period enjoys the same rights as permanent em-ee f. A probationer who receives no confirmation after the probationary priod is still a probationer. However, if he is given a salary increment, he has a strong case that the employer is satisfies with his performance and considered as confirm

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Dismissal & Redundancy
Sunday, 23 September, 2012 3:57 PM

1. S11(1) - A c.o.s. for a specified period of time or specified piece of work will terminate at the end of the specified time or completion of the piece of work 2. 2 types of terminations - With notice - W/o notice

3. Termination with notice a. S12(1) - Either party to a contract may terminate the contract by giving notice of his intention to terminate the contract b. S12(2) - The length of notice shall depend on the contract. If the contract does not provide for it, the notice shall not be lesser than : (a) 4 weeks - if the em-ee has less than 2 yrs of service (b) 6 weeks - if the em-ee has >2 but less than 5 yrs of service (c) 8 weeks - if the em-ee has >5 yrs of service c. If the termination is due mainly to the circumstances laid down in s12(3), employee must not given lesser than the notice stipulated above, notwithstanding ( ignoring the contract ) anything to the contrary in the c.o.s. 4. S12(3) - Redundancy may say to occur un the circumstances mentioned in S12(3) (a) - (f) of the EA1955: a. The employer has ceased or intend to cease to carry on the business for the purposes of which the employee was employed b. The employer has ……. Business in the place at which the employee was contracted to work c. The req of that biz for the em-ee to carry out work of a particular kind have ceased or diminished or expected to cease /diminish d. The req of that biz …….. Kind in the place at which he was contracted to work have ceased or …. Diminish. e. The em-ee has refused to accept his transfer to any other place of employment; unless his contract of service requires him to accept such transfer (breach of contract) f. A change has occurred in the ownership of the biz for the purposed of which an em-ee is employed or of part of such biz, regardless whether the change occurs by virtue of sale or other disposition or by operation of law.
5. Termination w/o notice

a. S13(1) C.o.s may be terminated by either party w/o notice, or if notice has alrdy been given, w/o waiting for the expiry of such notice by paying to the other party and indemnity (protection $) equal to the amt of wages that would have accrued during the period of notice or unexpired term of notice b. S13(2) Either party may terminate w/o notice if the other party willfully breach a condition of the c.o.s.
6. Termination with special reasons : • Misconduct (S14(1)) (a) Dismiss the em-ee w/o notice (b) Downgrade the em-ee (c) Impose any lesser punishment as he deems just and fit

Only after due inquiry

• An em-ee may terminate his c.o.s without notice if he/ his dependents are immediately threatened by danger of death/violence/diseases by any person/circumstances even
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threatened by danger of death/violence/diseases by any person/circumstances even though such conditions is stipulated in his c.o.s
DUE INQUIRY

1. S14(1) An em-er may, on the grounds of misconduct inconsistent with the fulfilment of the express or implied condition of his service, after due inquiry (a) Dismiss the em-ee w/o notice (b) Downgrade the em-ee (c) Impose any lesser punishment as he deems just and fit
2. The Act also permits the em-er to suspend the em-ee for a max of 2 weeks on 1/2 pay for purpose of holding such inquiry. If inquiry doesn’t disclose any misconduct on the part of the em-ee then em-er shall restore the full amount of wages withheld. -- S14(2)

3. The Employment Act does not define what constitutes ‘due inquiry’. However, reference may be made to the following guidelines laid down by the Industrial Court in the case of KJJ Cleetus and Unipamol (M) Sdn Bhd : i. the inquiry is to be instituted as early as possible after the suspension of the complainant; ii. the complainant is to be given particulars of the misconduct, preferably in writing; and a reasonable time is to be given to him before the inquiry to enable him to prepare his case; iii. where applicable, the complainant is to be accompanied by his union or committee representative, if any, at the inquiry; iv. the inquiry is to be conducted, as far as possible, by such officer(s) as not directly connected with the investigation of the misconduct, so as to give the hearing impartiality; v. examination of relevant witnesses is to be allowed at the reasonable discretion of the officer-in-charge of the inquiry; and vi. notes in the form of questions and answers and the final decision are to be recorded to show that the inquiry was proper, and that the decision arrived at was fair.
Inquire asap->particulars(reasonable time)->representative(if applicable)->conduct inquirt as far as possible by officers not connected to investigation -> examination of witnesses -> notes in Q&A and decision to be recorded

LAY OFF

1. A workman whose services are terminated, laid off or retires is entitled to benefits. 2. Employer is not liable to pay any termination /lay off benefits under the following categories: a. Upon the em-ee attaining age of retirement b. On the ground of misconduct after conducting due inquiry c. Voluntarily by the em-ee 3. What's a lay-off?

The term ‘lay-off’ refers to a situation where an employee has not been able to provide his employee with the kind of work the employee was employed to do, and the employee’s remuneration is dependent on being provided with such work.
4. S5(1) The em-ee is deemed to be laid off if :a. The em-er doesn’t provide such work for at least a total of 12 normal working fays within any period of 4 consecutive weeks. b. The em-ee is not entitled to any remuneration under the contract for the
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b. The em-ee is not entitled to any remuneration under the contract for the period/periods (within such 4 consecutive weeks) in which is not provided with work 5. S6(1) The amount of termination/lay-off benefits payment to which an em-ee is entitled shall not be less than:a. 10 days wages per yr of service ; if <2 yrs of service b. 15 days wages/yr of service ; if >2yrs or more ; < 5yrs c. 20 days wages/yr of service; if 5 yrs or more.
• In respect of incomplete years, the amount shal be calculates pro rata to the nearest month

6. Any termination/layoff benefits shall be paid within 7 days after the date with effect from which the contract is terminated ( or which the period of 4 consecutive weeks has expired- for layoff only) 7. A written statement must be given to the em-ee ( stating the amount of wages / benefits paid and the manner in which the benefits have been calculated)
UNJUSTIFIABLE DISMISSAL

1. The remedies are : (a) Reinstatement and backpay
This is the remedy that the Industrial Court is likely to award in normal cases of unfair or unjustified dismissal. Section 20 IRA1967 provides for the remedy of reinstatement. Reinstatement basically means that the employee, who has been unjustifiably dismissed, is put back into the position he would have been in prior to his dismissal. In the words of Tucker J. in Hodge v Ultra Electric Ltd (1943), ‘… reinstatement involves putting the specified person back, in law and in fact, in the same position as he occupied in the undertaking before the employer terminated his employment’. The Malaysian case of Han Chiang High School & Anor v National Union of Teachers in Independent Schools, is also illustrative of this.

Thus, when an employee is reinstated he would be entitled to occupy the same position that he occupied before, and would be entitled to receive arrears of salary from the time he was dismissed until the time of reinstatement. His status and other privileges are restored.
(b) Compensation in lieu of reinstatement and backpay.

Sometimes it is not possible or even advisable to order reinstatement. This may happen where the court finds that reinstatement may produce negative results to the employer. For example, the retention of the employee may lead to an apprehension of breach of industrial peace. As was stated in the case of KFC Holdings Sdn Bhd and Lim Seng Yang, the relief of reinstatement may be refused in exceptional circumstances like the employer losing confidence in the workman, or the retention of the workman leading to an apprehension of breach of industrial peace. Reinstatement will also be impossible where the claimant has died after the proceedings in respect of his claim had begun.
When this happens the court is likely to order compensation in lieu of reinstatement. The compensation payable is normally at the rate of one month’s pay for each year of service subject to a maximum of 24 months. However, this is subject to other considerations.

The court is free to take into account various factors such as the duty of the employee to mitigate his loss by seeking alternative employment and the conduct of the employee contributing to the dismissal, before making an order for compensation in lieu of
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contributing to the dismissal, before making an order for compensation in lieu of reinstatement.

(c) Re-engagement/re-employment.
Sometimes the employee is merely re-employed. This means that the employee is merely given an opportunity to work again. His past services are erased and no arrears of salary or other allowances are payable. The case of Restu Motor Sdn Bhd and Nazaruddin bin Abdul Samad may be cited as an example. In this case following conciliation efforts by the Industrial Relations Department, the company agreed to employ the claimant anew in the same post with the same salary but his past service was lost and he was also not given any arrears of wages.
CONSTRUCTIVE DISMISSAL

1. Constructive dismissal refers to a situation where the employee himself has resigned because the employer has made the working environment intolerable for the employee to continue working for the employer. By making the working conditions intolerable the employer is deemed to have breached the contract of employment, thereby entitling the employee to resign. 2. Examples of such conduct are where the employer had compelled the employee to do demeaning tasks, demoted the employee, or subjected him to unfair or oppressive working conditions with a view of humiliating the employee so that he himself will resign from his job. Under such circumstances, if the employee does indeed feel compelled to resign, he may be considered to have been constructively dismissed. 3. An illustration is found in the case of Bumpus v Standard Life Assurance Co Ltd (1974). In this case, the employee was faced with demotion. He wrote a letter of resignation to his employer indicating his refusal to accept the demotion and thereby accepting the repudiation by the employer. The court held that he had been constructively dismissed. 4. Some guideline as to whether there has been a constructive dismissal has been provided in the case of Wong Chee Hong v Cathay Organisation (M) Sdn Bhd . In that case it was stated that whether there has been a constructive dismissal is to be determined by two factors:Repudiation - The rejection or refusal a. Whether the employer’s conduct amounted to a breach of the contract of employment going to the root of the contract OR whether the employer had shown an intention not to be bound by the contract. b. Whether the employee made up his mind to leave the employment and acted within a reasonable time after the employer’s conduct.
REDUNDANCY

1. Redundancy, in the context of employment law, refers to a situation where an employer has surplus of labour and has to downsize his labour force. 2. A redundancy may be said to occur in the circumstances mentioned in s.12 (3) (a) – (f) of the Employment Act 1955 3. There must be proof of redundancy by the employer. Following measures an employer should take:a. Proper selection of em-ees: i. Seniority - most recently employed should be first to retrench (LIFO) ii. Job performance - poor performance first to be retrench iii. Potential - least potential first out b. Em-ers shld consult the em-ees rep / trade unions before any announcement to te By retrench means redundancy em-ees are made c. Em-ers shld give em-ees early warning, early retirement/retrenchment benefits and assistance from the govt in helping the workers find alternative employment b4 declaring retrenchment
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declaring retrenchment 4. Not compulsory for em-ers to provide any retrenchment benefits to the em-ee unless stated in the contract following negotiations with trade officials. 5. Em-er is not obliged to pay any retrenchment benefit to his retrenched workers if a. He has offered suitable alternative employment to his worker and the worker has accepted or unreasonably refused it b. The employee has served less than 3 yrs

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