Notice Period of Termination

In the absence of written terms the notice period at the date of giving notice shall not be less than

4 weeks : if employed for less than 2 years

6 weeks: if employed for 2 years and more but less than 5 years

8 weeks: if employed for 5 years and more

the notice period is given in the EA applies only if the written contract of service does not contain the notice period.

Either party can waive the right to a notice. Either party can pay the other parth an indemnity amount equal to the wages for the unexpired portion of the notice

Example

Monthly rated employee earning RM 1,400 per month. he wished to resign and leave immediately. The notice period required under his employment contract is 4 weeks. He gave his written notice on 18.6.2015. It was accepted by the management on the same day.

4 weeks notice period = 7 days per week x 4 week = 28 days

The period of 4 weeks is from 18.6.2015 to 15.7.2015

The indemnity amount which has to pay is

(a) 18.6.2015 – 30.6.2015 = 13 days = (RM 1,400/30) x 13 = RM 606.67

(b)1.7.2015 – 15.7.2015 = 15 days = (RM 1,400×31) x 15 = RM 677.42

(c) Total amount payable = RM 606.67 + RM 677.42 = RM 1,284.09