Malaysia's Industrialization from 1950

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What Is A Cause Agreement

Faced with these unpleasant options, some boards may decide to keep an executive until the end of the term of the contract, even if this may harm the association, as the organization cannot afford to pay both severance pay and the successor`s salary. Other chambers negotiate a compromise award to avoid litigation or public dispute. Executives and other senior officials often negotiate a contractual clause requiring payment of severance pay if it is terminated without a “cause” before a futures contract expires. While the definition of the case often depends on the bargaining power of the parties (the talents sought generally have considerable influence), the employer should try to negotiate the broadest possible definition of the case. Too often, employers limit the definition of the cause to intentional misconduct that harms the business, criminal behaviour or death of the officer. Such a narrow definition binds the employer`s hands when an officer does not make good faith efforts to achieve good results or does not fare very badly despite the proper efforts. In these circumstances, the employer`s options are limited to continuing to employ underperforming executives or terminating the manager and resigning. The concept of dismissal for work reasons appears in employment contracts. That is where it should be — do not put it in other types of contracts. (vi) the company`s inability to obtain written acceptance by a successor, before or on the date of the merger, of the companies` obligations to management, before or at the time of the merger, of the sale of all the company`s assets or of a similar transaction, essentially of the company, unless such written acceptance was not legally necessary to maintain the effect of that agreement.

In the absence of a public scandal detrimental to the reputation of both the executive and the association, the executive should be honestly informed of the alleged reason for dismissal and the possibility of reacting. Moreover, in employment contracts, the label “dismissal on the merits” (from the employer`s point of view) is contrary to “resignation for a good reason” (from the employee`s point of view).

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