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Business Sustainability from the Perspective and Management of Malaysian Retrenchment Laws
Abstract
The chapter is based on the analysis of the relevant statues on retrenchment in Malaysia and criterion based sampling of the Court awards to analyze the cases and to provide recommendations to practitioners. Findings from these cases analyses reveal that many of the retrenchment awards were made against the employers due to the handling of the retrenchment exercise itself which violated the relevant statutes and the established procedures. The author suggests that retrenchment should not be viewed as a reactive but a proactive exercise aligned with the organizational strategic plan. The retrenchment exercise should be seen as a last resort when other measures have been exhausted. The author hopes with many proactive measures, the number of unfair retrenchment claims made to the Industrial Relations Department will be reduced. This will eventually improve or maintain the harmonious employment relations.
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