When we resign, it is very common to have a physical last day and a last day on payroll. In between our physical last day and the last day on payroll, technically we are on our annual leave.
So many have asked me, “During this period, are we allowed to start work at a new company?”
This is a grey area. It highly depends on how we exited. Let me explain.
Technically speaking, when employees are on leave, they are free to manage their own time and movement, as long as it does not go against any company policy.
Even if the company has a policy restricting employees from starting a new job during this period, I question…
What is the company actually going to do?
Is the company going to issue a show cause letter because the employee started work earlier at a new company?
Is the company going to spend a minimum of RM5,000 to hire a lawyer and take legal action just because the employee started work a bit earlier?
What is the company planning to do, realistically?
Realistically, the company should bid you farewell, wish you the best in your future endeavours, and move on like how mature adults should.
Besides, it is actually very common for someone to start work immediately after their physical last day with their previous company. And dual employment in Malaysia is not against the law. It is perfectly legal to receive EPF contributions from two different companies at the same time.
But… if you have signed an agreement with the company explicitly states you cannot start work at a new company during this period (for example, during Garden Leave), and that you will be penalised if you do, then be careful. Better to wait until you are officially exited to avoid the stress that may come later.
So my advice, just be honest and inform your employer where you are going.
Because if you inform them and they do not take immediate action, it can be interpreted that they condone the situation. If they only decide to take action later, it may look like an afterthought, and that usually does not put the company in a strong position.
All the best with your offboarding and onboarding! 😉
xoxoxo, AuntyHR
