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Types Of Layoffs

Employers are required to report to the nearest Labour Office before any of the following actions are made by submitting a JTKSWK 19 Labor Retrenchment Form and Appendix to JTKSWK19;

Retrenchment Of Worker
  1. Permanent Termination is the act of terminating a contract or service by an employer on an employee because the company is experiencing financial problems or doing business restructuring resulting in an excess of manpower.
  2. Employees who are dismissed will be paid termination benefits as provided under the Labor Rules (Sarawak) (Temporary Termination and Termination Benefits) 2008) or in accordance with the collective agreement.
Voluntary Separation Scheme
  1. Voluntary Separation Secheme (VSS) means an employer intends to reduce the number of employee but by inviting employees to stop working voluntarily. In the ordinary course of action the worker will be offered a termination benefit or compensation which is better than that provided for under the provisions of the law. However, the decision to allow the termination of a contract is in the hands of the employer.
  2. While actions such as Mutual Separation Scheme (MSS) and Rationaliszation Scheme have an almost similar concepts but having the different meanings with VSS. Those actions however, still need to be reported to the nearest Labour Office.
Temporary Lay-Off

Temporary Termination or lay-off actions occured when: –

 

  1. The employer does not provide employment for at least 12 working days in any period of 4 consecutive weeks (Rule 5 (1) (a), Labour Rules (Sarawak) (Termination Term and Temporary Retrenchment) 2008); and
  2. The employee has not been paid any subsistence assistance under the contract for the period or periods (within the 4 consecutive weeks) for which he is not provided with employment: (Rule 5 (1) (b), Labour Rules Sarawak) (Termination and Retrenchment Benefits) 2008).

 

Provided that during such period of time an employee is not employed due to rest days, public holiday, sick leave, maternity leave, annual leave, any other leave permitted under any written law, whatever leave applied by employee and approved by his employer, shall not be taken into account to determine whether the employee has been dismissed temporarily or otherwise.

 

In the event of the above two situations, the employer shall pay the termination benefit or temporary retrenchment benefit to the employees.

Procedure To Notify Of Retrenchment

Employers are required to report to the nearest Labour Office before any of the following actions are taken by submitting a JTKSWK Workers Retrenchment Form 19 and Appendix to JTKSWK19 according to the types of dismissal or action to be taken by the employer:-

  1. Retrenchment Of Worker
  2. Voluntary Separation Scheme
  3. Temporary Lay-Off
  4. Salary Reduction

The JTKSWK 19 form must be submitted to the nearest Labour Office with particulars as follow:

  1. Part I to IV- to be sent in at least thirty (30) days prior to the termination of an employee.
  2. Part V – to be sent in within fourteen (14) days after the termination of an employee.
  3. Part VI and Attachment – to be sent in within thirty (30) days after the termination of an employee.

Note: Parts V and VI need to be sent in when action involves permanent dismissal or / and voluntary layoffs

Retrenchment Form

Notice of Termination 2009 (Worker Retrenchment Form) can be obtained free of charge from any Labour Office in Sarawak or can be downloaded JTKSWK Workers Retrenchment Form 19 and Appendix to JTKSWK19.

Penalty Of Failure To Submit A Notice Retrenchment

Notice of Termination 2009 (Employee Retrenchment) has been gazetted as PU (B) 205 on 26 June 2009 and any employer who fails to comply with this Article is comitting an offence under section 130M of the Labour Ordinance (Sarawak Cap.76), and upon conviction shall be liable to a fine of not exceeding RM10,000.

Contact Us

Please contact the nearest Labour Offices (Department of Labour Office Headquarters & Divisional Offices).

 

If you have any inquiry please click HERE.

Jabatan Tenaga Kerja Sarawak
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