CLAUSE 37 - ANNUAL BONUS
(i) Subject to the provisions of this Clause:-
(a) The Company shall pay an annual bonus equivalent to twice the employee’s monthly basic salary with due regards to the exchange of letter between the Company and the Union.
(b) Every employee other than an employee on probation shall be paid a bonus payment in respect of his continuous employment with the Company during the whole of every calendar year (1st January to 31st December) or, where an employee is employed by the Company for a portion of a calendar year, a bonus payment proportionate to that portion, in respect of his employment with the Company during that portion of that calendar year, provided that the employee has completed one (1) year’s continuous employment with the Company prior to such portion of the calendar year’s employment.
(ii) For the purpose of calculating bonus payments:
(a)an employee’s monthly salary shall be his monthly salary as at the 31st day of December of the calendar year in respect of which the bonus is due or, in the case of an employee whose employment with the Company is terminated, his monthly salary as at the date his employment with the Company is terminated.
PROVIDED that the monthly salary of an employee who, on the 31st day of December in any calendar year, is absent without salary (whether or not leave of absence has been granted) shall be his monthly salary immediately before the commencement of such absence;
(b) in the case of an employee who has been confirmed in the employment of the Company, employment on probation in any calendar year shall be reckoned as employment in that calendar year;
(c) any period by which the aggregate period of an employee’s absences from work without salary (whether or not leave of absence has been granted) in any calendar year exceeds one half of a month shall be deducted from the period of his employment with the Company during that calendar year.
(iii) The bonus payment for employment in any calendar year shall be paid:
(a) to an employee who will be in the employment of the Company on the 31st day of December in that calendar year other than as an employee on probation, on or about 20th December in that calendar year;
(b) to an employee whose employment with the Company is terminated other than as an employee on probation, as soon as bonus for that calendar year has been declared.
CLAUSE 38 - RETRENCHMENT
(i) “Retrenchment” means termination by the Company of the service of an employee for reasons described hereunder, but it does not include:-
(a) voluntary retirement of an employee;
(b) compulsory retirement of an employee on reaching the age of retirement as provided in Clause 39; and
(c) termination of the service of an employee on the grounds of ill-health.
(ii) “Continuous service” means uninterrupted service, and includes service interrupted merely on account of:
(a) sickness; or
(b) authorised leave.
(iii) “Authorised leave” in sub-clause (ii) above means leave approved and granted by the Company.
(iv) The Company may terminate the employment of an employee by reason of redundancy or by reason of the re-organisation of the Company’s profession, business, trade or work.
(v) Where an employee’s employment is terminated by reason of redundancy, the Company agrees in principle, all things being equal, to lay off an employee on the basis of “LAST IN FIRST OUT” by function, except where, after consideration, in the opinion of the Company, an employee who might otherwise be laid-off is better qualified to meet the Company’s requirements.
(vi) In the event of the termination of the employment of an employee under sub-clause (iv) of this Clause, the Company shall give not less than three (3) months’ notice in writing giving the reasons for retrenchment or salary in lieu of such notice.
(vii) The following benefits shall be payable on the termination of employment for the reasons mentioned in sub-clause (iv) of this Clause:-
(a)
Employees with less than three (3) years’ continuous employment
Three-quarter (3/4) month’s last drawn salary for each year of employment or part thereof.
(b)
Employees with three (3) but less than five (5) years’ continuous employment
One (1) month’s last drawn salary for each year of employment or part thereof.
(c)
Employees with five (5) years and more continuous employment
One and a half (1½) months’ last drawn salary for each year of employment or part thereof.
CLAUSE 39 - RETIREMENT AND RETIREMENT BENEFITS
(i) An employee shall be entitled, or may be required by the Company to retire from his employment with the Company on or after reaching the age of fifty-five (55) years.
(ii) All employees who have been confirmed in their appointments and who have been in continuous employment with the Company for at least five (5) years shall be entitled to retirement benefits which shall commence to be paid in accordance with sub-clause (iii) of this Clause immediately after the fifth year of employment.
(iii) (a) Subject to the conditions stipulated in sub-clause (ii) above and to the law for
the time being in force, the Company shall pay to the Employees Provident Fund on behalf of each entitled employee for each month or part of a month, retirement benefits which together with the Compulsory Contribution amounting to:
1) 17 per centum of his salary provided he has been in continuous employment with the Company for at least five (5) years and up to ten (10) years;
2) 19 per centum of his salary provided he has been in continuous employment with the Company for ten (10) years and above;
(b) An employee shall not be entitled to any retirement benefits under this Clause in the event that his employment with the Company is terminated before the completion of the length of service as specified under sub-clause (ii) of this Clause.
(iv) For the purpose of this Clause: -
(a) “the Company” means STAR PUBLICATIONS (MALAYSIA) BERHAD and its branch offices in Malaysia.
(b) “Salary” means the monthly basic salary exclusive of allowances of any description, overtime pay, or pay for work done on rest day or on public holiday, bonus, commissions except such as have been specifically approved by the Company for inclusion in the basic salary of an employee.
(c) “Continuous employment with the Company” means a continuous period of employment of an employee without any break of service from the date of his appointment and shall include employment in a probationary capacity.
(v) With reference to sub-clause (iii)(a) of this Clause, it is agreed between the Company and the Union that there shall always subsist a 5% and 7% difference, whichever is applicable, above the compulsory contributions for retirement benefits to employees irrespective of whether the rate of compulsory contributions imposed upon the employer is increased or decreased from the present rate of 12%.
