Major Teoh’s Blog

April 30, 2007

Guide to Retrenchment

Filed under: Guide to Retrenchment,Labour Laws of Malaysia — Major (Rtd) Teoh @ 10:56 am



Source: MOHR Website


This guideline is to explain the best possible ways to implement retrenchment and other related matters.


Retrenchment means termination of the contract of service of the employees in a redundancy situation which arise from several factors such as closure of business, restructuring, reduction in production, mergers, technological changes, take-over, economic downturn and others.


When there is a situation of redundancy, the employers concerned must first take relevant measures to avert termination of employees. For industrial harmony, measures as follows are suggested:-

3.1 To stop recruitment of new workers except for critical areas.
3.2 To limit overtime work.
3.3 To limit work on weekly rest days and public holidays.
3.4 To reduce weekly working days or reduce the number of shifts.
3.5 To reduce daily working hours.
3.6 To conduct retraining programmes for workers.
3.7 To identify alternative jobs and to transfer workers to other divisions/other jobs in the same company.

To implement temporary lay-off i.e. temporary shut down by offering fair salary and to assist the employees affected in obtaining temporary employment elsewhere until normal operation resumes.


To introduce pay-cut in a fair manner at all levels and to be implemented as a last resort after other cost cutting measures have been carried out.

Measures in 3.7, 3.8 and 3.9 must be implemented with the consent of the workers or the trade unions representing the employees.


If the retrenchment of workers still has to be exercised despite the implementation of the above steps (para 3), employers should implement the following measures to lessen the negative impact on the workers:


To immediately inform and discuss with the workers or the trade unions which represent them regarding any impending retrenchment.

4.2 To offer retrenchment/voluntary retirement scheme with the best possible compensation.
4.3 To terminate workers who have attained normal retirement age.

To assist workers in seeking alternative employment elsewhere before retrenchment with the cooperation of Labour Department and Manpower Department under the Ministry of Human Resources.

4.5 To implement retrenchment in stages over a long period.
4.6 To terminate the foreign workers first before terminating the local workers in the same category.

When the retrenchment involves local workers, the ‘LIFO’ principle (last-in-first-out) must be practiced for the same category of work. However, employers may carry out retrenchments in accordance with certain criterias after consultation and the approval of the workers and trade unions representing them.



Employers are required to report to the nearest Labour Office at least one month prior to taking the measures as stated below by using the following forms:

5.1.1 Retrenchment of workers – Form PK1/98
5.1.2 Voluntary separation – Form PK2/98
5.1.3 Lay-Off – Form PK3/98
5.1.4 Pay-Cut – Form PK4/98
5.2 These forms are available free of charge from any Labour Office in Peninsular Malaysia.


6.1 The Employees Rights Under The Employment Act 1955.

The notice of termination in accordance with the contract of service but shall not be less than those specified in the Employment Act 1955, i.e. :

a) 4 weeks notice if the worker has been employed less than 2 years;
b) 6 weeks notice if the worker has been employed for 2 years but less than 5 years;
c) 8 weeks notice if the worker has been employed more than 5 years.

Should the employer failed to give sufficient notice, the employee is entitled to be paid wages in lieu of notice. Wages in lieu of notice must be paid in full, latest on the day the contract of service is terminated.


Retrenchment benefit must be in accordance with the contract of service but should not be less than the rate specified in the Employment Act 1955 which is:

a) 10 days wages for each year of service if the worker has been in employment for less than 2 years;

b) 15 days wages for each year of service if the worker has been in employment for 2 years but less than 5 years;

c) 20 days wages for each year of service if the worker has been in employment for 5 years or more.
6.1.4 Retrenchment Benefits must be paid latest by the 7th day after the date of retrenchment.
6.1.5 Should the above rights be denied, the worker can file a claim at the nearest Labour Office.
6.2 The Employee’s Rights Under the Industrial Relations Act.

If there is a Collective Agreement on terms and conditions relating to Retrenchment the benefits payable to the workers shall not be less than those stipulated in the Collective Agreement.


If the employee is not satisfied with the retrenchment, he or she may seek advice from the nearest Industrial Relations office which is under the Ministry of Human Resources.


7.1 Procedures in getting alternative employment.

Retrenched workers can come personally to register at the nearest Manpower Department free of charge, by bringing along with them their identity cards, educational certificates and other related documents. If the worker failed to get a job after 3 months, he or she must renew the registration with the Manpower Department. Successful applicants must also inform the Manpower Department immediately.

7.2 Procedures in recruiting retrenched workers to work in other companies.

Employers who wish to employ retrenched workers can request for suitable candidates from the nearest Manpower Department by stating relevant information on the vacancies available, salaries offered, minimum qualifications and other requirements. Upon interviewing the candidates supplied by the Manpower Department, employers should inform the Department of the number of candidates that have been recruited.


The government will not consider any request from employers to employ foreign workers if the employers do not give priority for local workers to fill the vacancies.


April 29, 2007

People over Procedures

Filed under: Guest Writers,Rupunda — Major (Rtd) Teoh @ 12:33 pm

People over Procedures

By Rupunda 

I have been researching how Systems and Procedures have created a Zombie Mindset in the Working world and for that matter in the world at large.  

In my view the Revolutionary evolution to Compassion is creating an environment where systems and procedures are going to loose their relevance as people reclaim their Spiritual and Wisdom Intelligence. 

If we are honest with ourselves most systems and procedures are designed to extract the maximum from the people in our organisation and they are designed in such a way that “encourages” compliance with the system. 

The intelligence we all have is left at the door when we arrive at work as we have found that the best way to get ahead is to comply with orders from above. 

Based on Consciousness studies worldwide 80% of Humanity lives in negative consciousness and in negative consciousness we willingly accept instructions from others are rarely look to THINKING for ourselves. 

This in my view is why companies try systems after system searching for the Holy Grail of HR Management that will extract the maximum at the minimum of cost thus increasing the profits and value of the enterprise. 

More and more we are loosing sight of the fact that the people we employ are in fact more important than anything else. Employees that have pride in themselves and in their organisation give the best and customers know it. 

I am now of the view that excellent customer service comes from excellent employee relations where the systems and procedures encourage employees to think and meet the customers needs. In industry after industry especially where call centres are set up the customer is fed with enough to get them off the line and to keep managements insulated from customer concerns. 

HR Managers in 2007 need to be looking at Spiritual and Wisdom intelligence and encourage their employees to speak from their heart on how to make everything they do better in such a way that makes them proud in the work they do and the product they produce is of the highest in quality. 

The industrial revolution is finished and we have to acknowledge that most of the systems we employ today have as their underlying motive the control systems of that time. 

There is no point in say we want knowledge workers when we discourage them by the very systems we implement from being creative.  

When we start to ask our employees to contribute in the beginning they will test us by asking or recommending small things that benefit them if we disregard these small requests we are showing our staff that we do not value their thoughts. We have to prove that we really want to work with them as oppose to them working for us. 

However as many Managers(and Chief Executives) have Low or Negative consciousness as I have mentioned in many of my writings (Understanding consciousness is based on the comprehensive work of David R Hawkins available through VERITAS Publishing  ) they are unable let alone willing to move into a mode where they are able to even believe that those below them in the corporate ladder could ever have ideas better than their own. 

A system that works well in a company where every is valued and everyone contributes is highly unlikely to work in a company where a different management mindset operates. Additionally when the unwritten policy of the company is at variance with the written policy it is even more difficulty to implement change and achieve the results we want. 

In 2007 where “THE MARKET” drives management decisions and decisions are made to keep the value of the share price high decisions are made on the basis of short term expediency and it is our employees who bear the greatest burden in keeping the market happy. Even in companies that are not publicly listed the management mindset of Public companies cascades into private companies. As companies transfer jobs to LOW COST countries what they are really doing is transferring to countries where the employees will follow blindly what management wants. 

Tragically the cost of labour is looked into before the quality and efficiency and it is easy to relocate even though we cannot see that these low cost countries will learn from us and become our competitors and then we will loose further business. 

If you work with a company that is not as efficient as it should be may I suggest that the first thing you need to investigate is the level of consciousness of your Managers and Supervisors.  

Those of us who understand the principles of Chinese and Natural Medicine understand that the place of pain is rarely the cause of pain. 

Our Management Style today is more like the allopathic medicine model which treats the place of pain instead of the cause of pain. 

Most Management Systems and Training programs are designed this way. To address the place of pain as opposed to the cause of pain. Training needs analysis concepts address the place of pain. 

Training programs that focus on procedures and do this and don’t do that no matter how much useful information is “Taught” will rarely achieve a result that address the ROOT CAUSE. 

When I design a experiential program I measure each model against the level of consciousness and will not offer any program to any client if it measures below the 700 level. From experience and many many mistakes over 46 years 5 Continents and 20 countries From Office Boy to Chief Executive I have learned at the university of Hard Knocks (as well as the places of Higher Learning that Give Degrees and Diplomas) that only when we understand the culture of the people can we even hope to guide them to become better. I use the word guide as opposed to Train as that is what we do to animals in the ZOO, we train them to follow our commands. 

Training others to follow our commands may benefit us in the short term but eventually we will pay the price of having employees who are discouraged from thinking. 

In our Human Resource Planning we have to go forward and really empower everyone in the organisation – not to go it alone but to be a real contributor to the success of a company. 

Our employees are stakeholders just as much as our shareholders and our customers. 

I can see the time and it is not to far away that those who understand the significance of the Revolutionary Evolution to Compassion in Management and Stakeholder Relationships will be the examples for all to follow. 

NO SYSTEM will produce better results unless every stakeholder is valued and their opinions respected. 

NO TRAINING PROGRAM will produce results unless all stakeholders accept responsibility for the result and are willing to LISTEN to the views of ALL. 

We have to move into a Positive Level of Consciousness if we are to succeed. It has been done by many and will continue to be done. If you have mangers who have a level of consciousness below the level of 400 the level of Reason and Understanding who are destined to continue in the treating the place of pain and leaving the root cause to attack you over and over again. 

Human Resource Managers in the Revolutionary and Evolutionary time need to understand and use these techniques which can be learnt and used relatively easily if we are willing to do unusual things. 

5000 Years ago the ancient Chinese developed a system called the I CHING to guide them in the actions they should take to achieve their goals. In 2007 many still use this system to get to THE ROOT CAUSE. 

For this article I asked the I CHING, what do HR Managers need to do NOW to make their Organisations Leaders in their Field. 

The Answer is: 


THE NAMESkin / revolution, (KO): Take off the skin; moulting; radical change, renew; revolt, overthrow; skin, leather Armour, soldiers; eliminate, repeal, cut off, cut away. The ideogram portrays an animal skin stretched on a frame. 

THE IMAGE:Skinning, on your own day there will be a connection to the spirits,Fundamental Success. Advantageous DivinationRepenting disappears This is the time when the snake sheds its skin, when radical change renews things, Strip away the old. Eliminate what has become useless, so the new can be seen. Overthrow what is corrupt. On your way, when the time is right, you will have a connection to the spirits. Act with confidence. This can inaugurate a whole new time. Success is guaranteed. It brings profit and insight. Reject old quarrels and memories. Present yourself in an entirely new way. Your doubts and sorrows will vanish. This is a timer when heaven and earth renew themselves and great people carry out heavens mandates. Yield and serve this great time. 

OUTER and INNER WORLDS: Open and RadianceChanging inner awareness skins away obsolete forms to reveal a stimulating new potential. 

HIDDEN POSSIBILITY: 44 CouplingRenewal through skinning contains the hidden possibility of a coupling  of the two primal powers.44 COUPLINGOPENING, WELCOMING, AN INTENSE PERSONAL ENCOUNTER: MEET AND ACT THROUGH THE YIN, SEXUAL INTERCOURSEA time to welcome what comes to you. Acting through the woman and the Yin brings invigoration strength. Welcome what comes. Do not try to enforce your will. This is a time of meetings, brief, intense encounters that involve universal forces. Do not try to control things directly, but realise what happens to you reflects the union of these powers. Great things are moving in these events. The spirit spreads throughout the world. You are coupled with a creative force. It brings unexpected encounters, lucky coincidences and enjoyable happenings. Do not try to hold onto things. These contacts come and go. When Heaven and Earth meet, all the beings join in a brief radiant display. The time of welcoming and coupling is truly great. 

SEQUENCE:The Tao of the well does not allow you not to skin (renew) things. Accepting this lets you use skinning 


DEFINITION:Skinning means prior causes are leaving. 

SYMBOL:In the centre of the mists there is FIRE. Skinning.The realizing person regulates how time is measured to brighten the seasons. 

To end this article I suggest we follow the example of the snake and shed our existing skins and allow the NEW one to come To embrace radical change which renews things, To Strip away the old, To Eliminate what has become useless, so the new can be seen. Overthrow what is corrupt.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The Author –  (Hj Mohd Hazri ) Rupunda  (He who moves with the Rainbow Body) is a global corporate and personal transformational healer dedicated to identifying and healing the root causes that hold organisations and people in negative consciousness. Rupunda shows us that healing, be it personal, corporate, national or spiritual, comes by embracing The Rainbow Body in our lives.
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Sah Ya Nor Bu Ru Pun Da Sah Ya Sha
Perfection Manifests within

April 17, 2007

A SriLankan Model of Management

Filed under: Guest Writers,Jayadeva De Silva — Major (Rtd) Teoh @ 8:53 am

  A SriLankan Model of Management

Jayadeva de Silva M.Sc,MBIM,FIPM,FITD*

SriLanka being a Buddhist country, SriLankan way of thinking is largely influenced by the teachings of Lord Buddha It is for that reason that I would recommend a SriLankan model of management. Most of these teachings  can be found in the “Singalovada Sutta for any one who is interested in reading.   Let us begin with Buddha’s basics on being a good boss or employer  which can be  adapted and used as follows

  •        -Assign work employees can manage. Make sure job requirements match the employees’ skills and talents. Keep them challenged by assigning special projects, cross training, or job rotation.

  •        -Give employees free food and enough money. Productivity and health are related. Pay them well and care for them, and they will pay you back with good work and loyalty.

  •        -Support them in sickness. Provide healthcare for all your employees.

  •        -Share the bounty. Profit-sharing and other equitable means of sharing the wealth will let your people know you appreciate their efforts.

  •        -Grant leave when appropriate. People are not machines and should not be treated as such. Maternity and paternity leaves, sabbaticals to “recharge the batteries” and special days off for families are very important to increasing productivity. Recharged workers make up for lost time after a refreshing holiday with new ideas, more energy and less stress.

Buddha has nothing against making a profit. As far as lay life is concerned. Just make sure you are making a profit while keeping the basic principles of honesty, integrity, social responsibility, and right livelihood.

  •        -Start small and tend to your business as you would a fire. Let it grow steadily as you feed it. When writing a mission statement, consider your duty to make your small part of the world a better place.

  •        -Buddhists should disapprove of adversarial business language. We should use words that emphasize collaboration and cooperation. Be conscious of the words you use. “Business is war” and “Crush the competition” are not very enlightened statements. Companies are very fond of using war as a team-building theme. An enlightened workplace avoids the use of language that connotes doing harm to other living things.

  •        -An enterprise that builds partnerships with other businesses, treats employees well, sees itself as a responsible member of the community, and shares its resources will be an organization built to last.

The moment your organization ceases to evolve, it will die.

  •        Your organizational structure should facilitate learning at all levels. Workspaces should be designed for teamwork and learning, procedures and policies written accordingly.

  •        Never give money to those who would misuse it. Give it first to the shareholders and employees who helped you make the profit. People influenced by Buddhist way of life  should use so called financial  capital &  human capital in the following manner

  •        -Never abandon what can still be useful. Repair it. Invest in quality well-made furniture, floors and fixtures.

  •        -Select and hire carefully. People must be cultivated for long-term, and not dumped at the first sign of tough times.

  •        -Be moderate in consuming resources. Recycle paper. Fly coach instead of first class. Share office spaces and dining spaces.

  •        -Real success depends on the virtue and character of leaders. No amount of charm will make up for the lack of confidence people have in you.

One should think long-term. All endeavors yield fruits in their own time.

  •        -Do not become attached to work processes. Let it all go. Everything changes.

  •        -Stay current and overhaul processes regularly.

  •        -Respect technology as a tool. It can be used for good or bad.

  •        -“The Web site you seek cannot be located, but endless others exist.” This anonymous saying reflects the way the Internet is forever changing, how cyberspace is infinite and endless. Just remember that worldly pleasures, will not last for ever. Everything is in a state of flux

  •        -Take the case of telecommuting. A good employee will do her work wherever she is. Many employees simply try to look busy at the office. People who work from home may tend to be even more productive.

  •        -Do not cling to the latest guru or consultant. Think for yourself.

  •        -Bad communication is gossip, idle chatter, and bad-mouthing. Good communication is clear, effective, direct and honest.

  •        -Do not analyze things too much. Decide on a course of action and take it. Meetings tend to be unproductive when the group debates and analyzes for so long that the window of opportunity for timely action closes.

  •        -When hiring remember that appearances can be deceiving. People are hired for their technical skills and get fired for poor interpersonal skills.

  •        Job security is a thing of the past. One cannot cling to a job or a career. Things change. That is the only constant. .We are responsible for our own development as employees. We should not look to someone else to hone our skills and develop our raw talent for us. Take the initiative and learn what you need to for yourself.

 Never put profit before people.

  •        -Your organization should embrace diversity. We must not insist on a one-size-fits all package.
  •        -Diversity is based on the fundamental idea humans are all the same. We all want fair pay for a fair day’s work. We all want respect. We all want to do meaningful work. We want kindness from others.
  •        -Buddhists are not sexist. Lord Buddha was 2,450 years ahead of his time by allowing women to become nuns and by declaring that everyone could go on the path to enlightenment. Do not sell yourself or anyone else short on account of gender. Buddhist would teach his employees about sexual harassment laws both the spirit of the law and the letter. He would say these laws are based on basic respect for all individuals and the right for people to feel safe at work. He would stop any harassment if he saw it going on. Any harassment affects all workers.
  •       If Buddha had spent his life playing it safe, he would never have become the Buddha. Playing it safe never leads to greatness.


*The author  obtained Master’s degree in Science from Russian Friendship University Moscow and Diploma in Personnel Management from National Institute of Business Management(SriLanka). He is a fellow of both the Institute of Personnel Management and Institute of Training & Development. He is also professionally qualified in training systems & curriculum design with an ILO fellowship.A strong advocate of Human Talents Development, Jayadeva is the principal consultant of humantalents unlimited, a professional practice that provides training & consultancy in Management. Jayadeva has carried out several consultancy projects and conducted numerous management development programs/strategic planning workshops, and has been trained in many modern management and leadership concepts. He has contributed articles (over 50) and authored the trend setting book ‘Human Talents Management’.  He founded humantalents International and HRSriLanka virtual learning Groups.  Jayadeva de Silva has functioned as Group Manager (Human Resources Development) of Hayleys Group of Companies a multi-billion-rupee public listed Group; and Group Director–Human Resources of Brown & Co. a large public listed company. He also serves as a resource person for professional and Post graduate courses primarily in the areas of HRM & HRD at Post graduate Institute, University of
Peradeniya, University of Ruhuna , ICFAI University(India), University of Southern Queensland (Institute of Chartered accountants), SriLanka Foundation Institute andInstitute of Personnel Management. He has been named president elect  2007 of HRDGateway, an International organization of over 15,000 HR Professionals world wide..He is featured in the millennium registry of SriLankan personalities

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