Managing Pay Reduction, Lay Off, Retrenchment, VSS and MSS

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Course Information

Due to the current uncertain economic outlook, many companies are forced to look at cost reduction in doing business, and one of its ways is to reduce labour costs. Besides retrenching their employees, companies are exploring cost-cutting measures such as a reduction in working hours and encouraging employees to take annual or unpaid leave. As a last resort, companies may have to conduct a retrenchment exercise if other cost-cutting measures fail. Retrenchment is the termination of employment of an employee or a group of employees due to a redundancy situation arising from a business reorganisation where certain positions are eliminated to cut costs. Other terminologies for terminating employees due to redundancy, such as downsizing, right sizing, and workforce reduction, have been widely used. It is common for employees to dispute the employer’s decision to retrench. Uninformed employers also risk running foul of the law when they fail to comply with proper retrenchment procedures.

Course Objective

• Have a better understanding of provision in the employment legislations in relation to lay-offs and 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 practices

Who Should Attend?

The programme is designed primarily for Human Resource Practitioners who may need to understand and apply the principles of proper retrenchment procedures at the workplace.

Course Trainer: Mr Heng Poh Suan

Mr Heng Poh Suan started his career as a Labour Officer in Kuala Kangsar in 1975. At the Labour Department, he was enforcing the various Labour Legislations. In 1983 he was transferred to the Industrial Relations Department. He was the Assistant Director of Industrial Relations from 1983 to 2001. He left the Industrial Relations Department in 2002 to join the Malaysian Employers Federation as their Industrial Relations Consultant. In 2005 he joined the Federation of Malaysian Manufacturers as their Human Resource/Industrial Relations Advisor. He had been conducting public as well as in-house training programmes relating to employment laws, discipline and misconduct and domestic inquiry procedures for member companies. In his capacity as the HR/IR Advisor in the Federation of Malaysian Manufacturers (FMM), he advised member companies on the compliance and implementation of the various labour legislations, disciplinary issues as well as issues arising out of their collective agreements with their unions. He left FMM at the end of June 2021 and is currently a freelance Training Facilitator and Industrial Relations Consultant.