Should you accept a voluntary package?
Your employer offered you a package to leave and you have to decide.
Should you accept a voluntary or mutual separation scheme?
That depends on the terms offered, your own plans and what you would give up. A scheme is a separation by agreement, and accepting it is a choice, not an obligation.
The Employment Insurance System treats an accepted scheme like an involuntary job loss for its financial support, if you apply within 60 days.1 That matters if income support is part of your decision.
What should you check before you decide?
Read the offer slowly and see whether it releases any further claims against the employer. Compare the figure with what a standard retrenchment benefit under your contract would give you.
Consider what declining means in practice, since an involuntary retrenchment using a method such as Last In First Out could still follow.2 Remember that the deadline for income support runs from your actual date of job loss either way.
How do you make the decision?
List what you gain, what you give up and what your next steps would be on each path. Ask for a short extension on the decision deadline if you need time, and get your questions answered in writing.
Read about how retrenchment benefits are calculated to compare with the offer. Check what Employment Insurance System support could look like for you on either path.
Who can review the offer?
If you want a lawyer to act before you sign, an employment lawyer can review the offer and flag wording that needs a second look. They can negotiate for you if the terms fall short.
A rushed decision on a document with long-term effects is a risk to avoid.
You have been offered a voluntary separation package and are unsure. An independent employment lawyer can review the terms before you sign, and act for you if they fall short.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
Is a voluntary scheme really voluntary?
It should be, meaning you are not forced to accept, though real pressure can make it feel otherwise. If you feel pushed rather than offered a choice, that is worth raising.
Does accepting a package mean I give up other claims?
Many offers include a release of further claims, so read the wording carefully before signing. Understand exactly what you would give up in exchange.
Can I negotiate the terms offered?
Sometimes, for example on timing, continued benefits or references, though not every employer will negotiate. It costs little to ask calmly in writing before you decide.
What happens if I decline the offer?
Declining does not make your job safe, because an involuntary retrenchment could still follow through a separate selection. Understanding both paths helps you decide.
Sources
- The Employment Insurance System gives temporary financial help to workers who lose their job involuntarily, including through an accepted Voluntary or Mutual Separation Scheme, provided they apply within 60 days of termination. malaysia.gov.my
- Last In First Out is the conventional principle for selecting who is retrenched, and an employer who departs from it must show sound reasons. Richard Wee Chambers
Keep reading
You have been offered a voluntary separation package and are unsure. An independent employment lawyer can review the terms before you sign, and act for you if they fall short.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.