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If employers implement temporary layoffs, the information regarding the period of layoff must be reported to the Labour Department Peninsular Malaysia (JTKSM) for the purpose of monitoring whether the employee is reinstated or offered Voluntary Separation Scheme (VSS) or permanentlyterminatedin future; and2.9 reduce employee's wages (Pay-Cut) which is made fairly at all levels can also be implemented as a last resort, after other cost saving measures have been implemented.

Steps 2.7, 2.8 and 2.9 must be taken by written consent of the employees or the trade unions that represents them.

However, employers can also implement termination based on certain criteria after consultation and with consent of the employee or trade union that represents them.

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This does not include termination of service due to disciplinary action and dismissal of employees.

When a redundancy situation arises, the employer must first take the necessary measures to avoid workers termination as proposed by the Procedure for Industrial Harmony, namely: - 2.1 freeze new recruitment except for critical areas; 2.2 limit overtime;2.3 limit work on weekly rest day and public holidays;2.4 reduce weekly working days or reduce the number of shift job;2.5 reduce daily working hours;2.6 conduct retraining programmes for workers;2.7 identify alternative work and transfer to other division/workwithin the same company;2.8 implement temporary layoff, for example in the form of temporary shutdown by offering a reasonable salary and help workers obtain temporary work elsewhere until operations can be resumed.

This merger brought great changes to JBSM which involved additional functions such as labour information gathering and placement of job seekers in the private sector.

The merger resulted in the change of the department’s name in Malay (although the name remained unchanged in English).

In brief, with the powers conferred under section 69 of the Employment Act 1955 to hear and decide a dispute, the department is applying steps 1 to 17 in labour case trial procedures.

The process concludes when the department takes action to enforce the order of the Labour Court.

The restructuring of labour institutions continued to be made to realise their functions and responsibilities more effectively.

Among the changes made was the separation of the Department of Labour from the Industrial Relations Department (IRD) and redraft of the responsibilities and functions.

Claims under section 69 of the Employment Act 1955 involve balance of salaries, wages in lieu of notice, payment of overtime, termination benefits and other benefits specified under the law in force. Section 69B of the Employment Act 1955 – Additional Powers of the Director-General Under section 69B, the powers of the Director-General under section 69(1)(a) shall extend to employees whose wages per month exceed RM2,000 but does not exceed RM5,000 a month.

For the purposes of this section, "wages" are as defined in section 2 of the Employment Act 1955.

5.1Employment Act 1955 Generally, employees who are covered under the Employment Act 1955 and involved in termination are eligible to claim statutory benefits as follows: 5.1.1 Salary in lieu of notice Employees who are terminated without adequate notice of termination, can claim notice compensation pay(indemnity).

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