13 month pay regulations

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  1. #1

    Join Date
    Sep 2004
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    Question 13 month pay regulations

    Hi! I hope someone could answer my question regarding the above.
    For the past 3years, My company has been giving us 13 month pay at the end of December.

    The problem now is, they are going to issue a memo by the end of November, to let us know that the 13 month pay will be suspended due to no profit in our company this year. They will also need every staff's signature in order for us to agree. What I want to know is, What if we don't sign the Memo, What will happen? Is it even right that my company won't be paying us 13 month pay this year and has just given us a one month notice regarding the above? Can this kind of situation be brought to the labour department?

    Thanks and awaiting for reply


  2. #2

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    First question - is it written in your contract that you will get 13 month pay.


  3. #3

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    Yes it is written in the contract.


  4. #4

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    i dont think it matters if they give you written notice ahead of time


  5. #5

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    Sep 2004
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    so does that mean they have the rights to just suspend the 13 month pay away if they want to?


  6. #6

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    not if it is written into the contract.

    my aunt just had a fight with a company over her "bonus". it was written into her contract that bonus would be paid based on HER performance. they tried issuing a letter to her saying that the company hasn't made enough to pay bonuses. she consulted a lawyer who told her that if it is written into the contract as per HER performance, how much the company made is completely irrelevant.

    she wrote them a nice, firm letter and they paid her out within a week.


  7. #7

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    It's going to depend exactly what the wording is in your contract. And then it may depend on what the contract says about termination if you decline to accept contract changes proposed by the employer.


  8. #8

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    agreed... my aunt did nothing about it until she contacted her lawyer friend.


  9. #9

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    okay, i've heard that if we didnt sign the contract, what happens is, the company will then have to terminate the employee and will pay them the 13month pay?


  10. #10

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    Yes, that's what I'd expect - if you refuse to accept the new contract then they must abide by the terms of the old contract, but they can then make you redundant. You could then try for unfair dismissal, but if the company genuinely can't afford to pay then I don't think you'd have much of a case.


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