Sunday, September 18, 2011

Retrenchment / VSS compensation packages in Malaysia: A Comparison (part 2)

More data...

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Malaysia Airport
s (airport, 2002, Source: news article)
Employees accepting the VSS offer will be paid between 0.75 and 1.75 times their last drawn salary multiplied by their years of service.

Intel Malaysia (2006, source: Intel sources)
VSS: Offered 1.5 months salary for each year of service and three months pay for leaving on short notice

Hualon (2008, receivership, news article)
Note : This is a unique case. Co was bankrupt, put under receivership and then sold to a new owner. Local law does not provide for retrenchment benefits if company is bankrupt. However, Hualon employees campaigned and got something at the end : "Hualon Corporation textile workers received compensation ranging from RM1,000 to RM17,000 based on years of service"

A good article below for more details on case
http://www.socialistworld.net/doc/3254


Hong Leong Bank, MIMB (post-takeover of EON Bank), Nov-2011

VSS payment formula is based on a VSS multiple that ranges from 1.4 (for executives) to 1.6 (for non-executives) multiplied by the length of service (capped at a maximum of 22 years) multiplied by the basic salary or 50% of total monthly salary until retirement, whichever is lower.

In addition, the Bank is also offering medical relief of up to RM1,000 reimbursable for a period of 6-months from the date of separation, continuation of housing and motor vehicle loans at staff preferential rates for a period of 12 months from the date of separation. 

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