Dear valued clients, colleagues and friends,

The issue of whether an employee is transferred or seconded can sometimes prove rather contentious. In a transfer, the employment relationship to transferred to the new employer (i.e. the original company is no longer the employer), whereas in a secondment situation, the employee remains under the employment of the original company but may perform work for the secondee company.

In the recent Kuala Lumpur High Court case of ACP DMT Sdn Bhd v Wan Abdul Hamid & Anor (WA-25-38-02/2021), one of the main issues which arose was whether the employee was transferred or seconded.

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