The Malaysia retrenchment benefits for EA-eligible employees are as follows: Less than 2 years: 10 days of salary (per year of employment) 2 - 5 years: 15 days of salary. 5 years and above: 20 days of salary. Say, an employee earning RM 1,900 who has worked for 6 years is about to get retrenched.
Retrenchment in Malaysia – Relevant Labour Laws. Hoi Yan. August 31, 2021. August 31, 2021. The challenging Covid-19 situation has hugely impacted many companies negatively and some companies have to retrench their employees in order to survive. It is a well accepted principle that a company is at liberty to reorganize its business and workforce, especially when there is a downturn in its business.
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