NARIO BASED

Manisan Sdn Bhd is a company that manufactures chocolates and sugar confectionery products. The company currently employs 150 employees. It has been in operation for the last 10 years but lately the company is not doing so well financially. As part of the company's effort to restructure and cut cost, the company intends to retrench some of its employees. Last week the company sent out notice of retrenchment to 30 of its current employees on ground of financial difficulties and redundancy.

Among those involved are Anthony, Jamal, Hock Tai and Nora. Anthony, Jamal, and Nora are production operators in the company while Hock Tai is a marketing executive. All of them are quite upset with the decision as they have been serving the company loyally for the many years.

They questioned the company's decision to retrench them because just last week they hear that the company has hired one new technician for the Production Department and a manager for the R&D Department. To add insult to injury, they found out that the company has decided to maintain the service of five foreign workers because the cost of paying their salaries is cheaper compared to paying the locals.

These aggrieved employees have now come and see you, an HR consultant to seek your advice on the following matters:

1. Do companies have the right to retrench employee when they face financial difficulties or when they do a restructuring? What should or should not be done by Manisan Sdn Bhd when the company wishes to retrench employees? Explain and relate your answer to the above scenario. (10 marks)

SCENARIO BASED

Kenny was employed as a Sales Executive in Syarikat Celomix. He received a salary of RM3380. Last month Kenny was accused of taking bribe from a customer of the company. His case was investigated by his direct supervisor, Mr. Chen. Kenny was also suspended without pay for two weeks pending the investigation. At the end of the investigation, the company concluded that there was enough evidence to charge Kenny and to hold a domestic inquiry. Zainal, the Senior Manager of Finance was appointed as Chairman of the Board of Inquiry. Before the domestic inquiry commenced, Zainal called Kenny into his office to hear his side of the story. Zainal believed that any information that he can get from Kenny would help him get a clearer picture of the case and hopefully settle the matter speedily.

On the day scheduled for the inquiry, while travelling to office to attend the hearing, Kenny met with an accident and suffered injuries that required him to seek treatment at the hospital. The doctor granted him medical leave for four days. Kenny called the company to inform them about his inability to attend the domestic inquiry but was surprised to learn that the company had decided to continue with the inquiry in his absence.

After the domestic inquiry was conducted, Kenny was found guilty by the Board. One week later, he received the termination letter from the company. Kenny was not satisfied with how the whole disciplinary process was carried out and wanted to sue his employer. But before he proceeds, he wishes to get clarification on certain issues.

In this context, advise Kenny on the following matter:

2. The reasons why the company suspended him while they were still investigating the misconduct. (5 marks)