Downsizing is part and parcel of any business operation, but a labour expert has urged bosses to observe proper procedures and act according to the law when doing so.
Datuk T. Thavalingam (pic), a lawyer who co-wrote Employment and Industrial Relations Law Malaysia, said firms had undertaken such exercises during economic downturns for the purpose of rationalising its manpower.
“Retrenchment is justifiable in any business operation as the court recognises that it is a management prerogative to re-organise its business, as long as it is done in good faith,” he said.
