About This Training
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In today’s uncertain economy, businesses can no longer afford to take workforce decisions lightly. Rising costs and global pressures are forcing companies to act— but doing it without the right strategy and compliance can be costly. During COVID-19, companies like AirAsia and 4Fingers Crispy Chicken retrenched employees under severe financial pressure, yet some cases later resulted in findings of wrongful dismissal. In one case, 4Fingers was ordered to pay an ex-manager RM309,000 for unfair dismissal, while in a recent case court ordered AirAsia to pay ex-pilot about RM147,400 wrongful dismissal.
These real examples send a clear message— it’s what every employer needs right now to ready to restructure correctly, minimise risk, and protect their business.
However, improper handling of these processes can expose employers to significant legal risks, including claims of unfair dismissal, financial penalties, and reputational damage.
This training programme is designed to provide participants with a comprehensive understanding of Malaysian employment law requirements in relation to workforce reduction and cost-management strategies. It covers the legal framework, practical implementation, and best practices to ensure compliance with the Employment Act 1955, Sabah & Sarawak Labour Ordinance, and Industrial Relations Act 1967, and relevant guidelines issued by the authorities.
Programme Overview
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This intensive one-day programme equips participants with the legal knowledge, practical tools, and strategic understanding required to manage workforce cost-reduction initiatives such as MSS, VSS, Voluntary Unpaid Leave (VUL), Early Retirement Scheme, Lay off and retrenchment in full compliance with Malaysian employment law.
In addition, ongoing global geopolitical tensions such as the US–Iran conflict has contributed to a volatile situation across the world. It contributes the disruption of the supply chain. Economic uncertainties have further impacted business stability, leading many organizations to adopt cost-management measures including workforce restructuring.
Training Objectives
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· Distinguish between MSS, VSS, ERS, VUL, Lay off and Retrenchment
· Understand legal requirements and risks
· Apply proper procedures and compliance standards
· Design legally separation schemes
· Minimize risk of unfair dismissal claims
· Handle employee communication professionally
Benefits
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- Participants will get lifetime access to our HR WhatsApp support group
- Participants will receive Certificate
Who Should Attend
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- HR Managers & Executives
- Business Owners / Directors
- Line Managers
Methodology
- Interactive Lectures
- Landmark Case Studies
- Group Discussions
- Practical Exercises
Modules
07:45am – 09:00am (Registration)
Module 1:
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Understanding Malaysian Employment Law Framework
- Employment Act 1955 (latest updates)
- Sabah Labour Ordinance CAP. 67
- Sarawak Labour Ordinance CAP. 76
- Industrial Relations Act 1967
- Unfair Dismissal
- Role of Industrial Court
- Employer obligations vs employee rights
- Employment Act 1955 (latest updates)
Module 2
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MSS, VSS, Voluntary Unpaid Leave (VUL) & Retrenchment – Concepts & Differences
- MSS (Mutual Separation Scheme)
- ERS (Early Retirement Scheme)
- Voluntary Unpaid Leave (VUL)
- Lay off
- Retrenchment
- When to use each option
- Advantages & risks of each method
- Cost vs legal exposure analysis
- MSS (Mutual Separation Scheme)
10am-10:10am (Tea Break Time)
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Legal Compliance for Retrenchment & Workforce Reduction
- Justification: Genuine redundancy
- LIFO principle (Last In First Out)
- Fair selection criteria
- Notification requirements (Borang PK)
- Retrenchment benefits calculation
- Alternatives before retrenchment (VUL, redeployment)
Module 4
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Avoiding Unfair Dismissal & Legal Pitfalls
- What constitutes unfair dismissal
- Common employer mistakes:
- No proper documentation
- Disguised retrenchment
- Forced resignation
- Industrial Court case examples
- Burden of proof on employer
Module 5
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Designing & Implementing MSS, VSS & VUL Successfully
- Structuring MSS/VSS packages
- Legal considerations in offers
- Voluntary Unpaid Leave policies
- Communication strategies:
- Delivering difficult messages
- Managing morale & reputation
- Documentation checklist
End: 1pm
Venue Information
Venue
Zoom
Time
08am-01pm
Date:
06 May 2026
Price
RM399
Discount
RM299 For Group of 4 & above