Can Employer Reject Buyout in Malaysia? – If you are an employee in Malaysia who wants to resign from your job, you may wonder if you can offer a buyout to your employer instead of serving the notice period. A buyout is a payment that compensates the employer for the loss of your services during the notice period.
According to Malaysian employment law, an employee has the right to terminate their contract of service by giving notice or paying in lieu of notice, unless there is a specific clause in the contract that prohibits buyouts. This means that you can offer a buyout to your employer as long as it is equivalent to your salary for the notice period. For example, if your monthly salary is RM3,000 and your notice period is two months, you can pay RM6,000 to your employer as a buyout.
However, your employer has the right to accept or reject your buyout offer. If your employer rejects your buyout offer, you will have to serve the notice period or face legal consequences. Your employer may reject your buyout offer for various reasons, such as:
- They need you to complete an important project or task before you leave.
- They want you to train or hand over your work to your replacement.
- They want to discourage other employees from resigning without serving the notice period.
- They have a policy that does not allow buyouts.
Therefore, before you offer a buyout to your employer, you should check your contract of service and your employer’s policy on buyouts. You should also communicate with your employer and explain why you want to offer a buyout. You should be respectful and professional when making your offer and be prepared to negotiate or compromise if your employer rejects it.
In conclusion, Malaysian employment law allows employees to offer buyouts to their employers instead of serving the notice period, unless there is a contractual clause that forbids it. However, employers have the right to accept or reject buyouts at their discretion. Therefore, employees should be careful and courteous when offering buyouts and respect their employer’s decision.
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