Lazada employees question non-compete clauses, clawback of shares after layoffs

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NON-COMPETE CLAUSES

Like other retrenched Lazada employees, Timothy would still be bound by the non-compete clause in his employment contract and RSU documents. The HR representatives framed the layoffs as a “mutual separation”, he said, adding that this was “very nasty”. 

Most of Lazada’s main competitors like Sea, Grab, TikTok and Goto are on the non-compete list, which is to be expected, employees said. But the extensive list also covers retail firms like NTUC FairPrice, Giant and Amazon, as well as logistics companies like J&T, SF, Kerry and NinjaVan. 

If employees violate the non-compete clause by joining one of the companies on the list, their vested shares can be cancelled by Lazada because they are held in a trust under the company. When staff members asked if Lazada could buy back the shares, they were told to wait for the company’s initial public offering. 

Since Lazada is not yet profitable, employees with vested shares do not receive any dividends. The value of the shares has also dropped significantly from when he first joined, Timothy said. 

“They don’t allow us to sell it back. That’s the thing, there’s no liquidity and in tax season, we still need to pay quite heavy taxes for these RSUs,” he said. 

“The worst thing is that the RSUs are still held in the trust controlled by Lazada or Alibaba Group. And they still want to use it to threaten you not to join their competitors.” 

Another former Lazada employee, Russell, who was retrenched mid last year, faced a similar situation. He was promoted in April 2023 and offered US$17,000 of RSUs that would vest over four years. 

But he was laid off just weeks later in a similar way – HR informed him in a meeting that his team had been made redundant, and offered a retrenchment package. 

“It’s really an insult. We work for them tirelessly, (doing) overtime for free because we believe in the company. But they let us go with such a lousy package,” Russell said. 

In his case, his RSUs had yet to vest, so he did not feel threatened by the non-compete clause in his contract. But he has heard of other cases where former employees have had their RSUs clawed back because they went to work for a competitor. 

CNA has contacted Lazada about the RSUs and non-compete clause for retrenched employees.

CLAWING BACK VESTED SHARES

Employment law and HR experts CNA spoke to said it is common for companies to spread the vesting of RSUs in multiple tranches over time, usually using it as an incentive for employees to stay. 

Unvested RSUs are typically forfeited if the employee is terminated, regardless of the reason for termination, said Ms Amarjit Kaur, partner in litigation and arbitration at Withers KhattarWong. 

“Certain companies may be prepared to allow for an accelerated vesting of such RSUs, but this is unusual as companies generally prefer not to set such precedents.”  

For vested RSUs, the company is also under no obligation to buy back the shares if there was no prior contractual agreement to do so, said Mr Darren Tan, deputy managing director at Invictus Law. 

Lazada choosing not to buy back the shares is not surprising, since the reason for layoffs is usually liquidity issues, said Mr Chooi Jing Yen, partner at Eugene Thuraisingam LLC. 

“The company would not want to expend more cashflow than it has to. The employees would have to hold onto the shares and seek to cash out at a later date.”

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Taiwan Votes 2024: Beijing watches presidential race, dangling carrots for integration plans

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Despite the criticisms, Mr Chen said he still found his experience studying in China invaluable.

He said that Taiwanese youths need more exposure in order to truly understand China, before passing judgement themselves.

The cross-strait integration plan unveiled by the Chinese State Council is part of China’s longstanding strategy to foster closer ties with Taiwan.

“We will suppress pro-Taiwan independence forces while using a soft approach towards the Taiwanese people,” Professor Li Fei from Xiamen University’s Taiwan Research Center told CNA.

“It is a carrot-and-stick approach. The carrot is to promote cross-strait integration and preferential policies for the Taiwanese.”

He added that despite many Taiwanese opposing reunification after seeing how Hong Kong is governed under the “One Country, Two Systems” principle, there is room for negotiation.

“The conditions for Taiwan’s ‘One Country, Two Systems’ may be discussed. ‘One Country’ is non-negotiable, but ‘Two Systems’ is negotiable. We are constantly adjusting and adapting it,” said Prof Li.

“We have to adapt it according to how we reunify with Taiwan. If it is a peaceful reunification, of course we can discuss the conditions. If it is a non-peaceful reunification, the system may be different.”

BETWEEN WAR AND PEACE

Beijing has framed the upcoming Taiwanese presidential contest as a choice between war and peace.

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What’s a risk you took that you’re proud of? These women in Singapore share their inspiring stories

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My youngest daughter Samirah was 16 when she was diagnosed with Crohn’s disease, a type of inflammatory bowel disease that can lead to abdominal pain, severe diarrhoea, fatigue and malnutrition. Due to this, she experienced severe stomach pain and was hospitalised often. 

It was manageable when she was home, but difficult when she moved abroad. After her O Levels, Samirah enrolled in a pre-university institution in Kuala Lumpur (KL), Malaysia. When her condition flared up, I would take urgent leave, and my husband and I would drive up to KL to be by her side. 

But when she went to Belfast, Northern Ireland, for her university degree, it got really tough. While the medical professionals there were more familiar with her condition and she received free medical treatment as a student, she struggled being alone. 

Eventually, she fell into severe depression. 

In March 2022, I had to make a decision: Stay in my teaching job or quit to take care of my daughter full-time in an unfamiliar country. 

I had to consider my financial situation. Even though my other daughters, aged 28 and 27, were able to support themselves, it was tough to leave a stable income as my husband and I were both supporting our parents. 

I also had to consider the responsibility I had as a teacher. I was teaching O-Level students then and to leave in April meant that I couldn’t guide them for the rest of the year.

But I knew being a mother was the biggest priority, so I took a risk and left the service. 

After ensuring that matters would be cared for in our absence, my husband – who had decided to retire to be with Samirah – and I flew to Belfast to be with our daughter. 

Since then, I’ve taken care of her, accompanying her to medical appointments, and supporting her. 

Leaving my job and the rest of my family was a scary decision. I was aware that I’d lose my income – I didn’t know if we could survive on just our savings – and I wasn’t sure if Samirah would get better.

But I didn’t want to overthink it.  I just knew that my daughter needed me and I had to be there for her. 

Samirah graduated later that year and secured a research job in Newcastle, and we moved there with her. For her, I would risk it all over again. 

KAVITHA KRISHNAN, ARTISTIC DIRECTOR, 52

The risk she took: She opened two dance companies that welcome people with disabilities.

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Raids in Kuala Lumpur targeting undocumented migrant workers highlight rising anti-foreigner sentiment in Malaysia

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ANTI-IMMIGRANT SENTIMENT RISING, EXACERBATED BY SOCIAL MEDIA

In his videos, Mr Sophian – who has been accused of stirring up anti-immigrant sentiments – goes up to migrants who work in restaurants or grocers and questions them on their right to work in Malaysia.      

He has been filmed in Kuala Lumpur, Melaka, and Penang among other places and has also ambushed areas that have large populations of Rohingya refugees. 

Some of his videos posted on TikTok have racked up hundreds of thousands of views.

His actions have generally been supported by many people who tell him to keep up his work. 

“We love our country, so this has to be done. The foreigners are getting big headed and taking advantage. Continue the good work,” read a comment on one of his videos taken at Jalan Silang.      

Mr Sophian, who heads a non-governmental organisation called Surplus, told CNA that he was only against undocumented migrants in the country as well as businesses that were owned by them.

He also takes issue with businesses that hire migrants and place them in front-facing positions such as cashiers, claiming that this takes away jobs from locals. 

“Every country has laws and any foreigner who wants to come into the country has to abide by the laws,” said Mr Sophian.  
 
He further claimed that his “ambushes” have been ongoing for more than a year to put pressure on the government to take action.  

“This is a critical issue and I want Malaysians to see what is really happening on the ground. If I make a complaint online, it will take a long time for any action to be taken,” he said, adding that he believed the raids in Jalan Silang for instance were conducted after his “ambushes”.

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Beijing reminds Taiwanese to pick the right leaders

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Political tensions in the Taiwan Strait have risen recently as about 20 million Taiwanese voters prepare to elect their president and lawmakers on Saturday.

China’s Taiwan Affairs Office’s spokesperson Chen Binhua said Taiwanese people should not vote for Democratic Progressive Party (DPP)’s presidential candidate Lai Ching-te, because Lai’s “Taiwan independence” approach is dangerous and will only push the island towards war and recession.

“Cross-strait relations have deteriorated from peaceful development to tense confrontation over the past eight years,” Chen said in a media briefing on Wednesday. “The so-called ‘Tsai Ing-wen path’ is a path of ‘Taiwan independence’ and confrontation, and is harmful to Taiwan.”

He said “Taiwan independence” is the major threat to Taiwan’s security, the interests of Taiwanese people and regional stability.

Chen’s strong words came after Lai said at a press conference on Tuesday that he would continue Taiwanese President Tsai Ing-wen’s diplomatic, national defense and cross-strait policies. Lai also said he would help create a new situation in the Indo-Pacific region and push forward cross-strait exchanges and cooperation.

Lai said Taiwan’s door is always open for cross-strt cooperation based on the principle of reciprocity and dignity.

Lai’s advantage

Western media have described the coming Taiwanese elections as one of the most important political events in 2024 as the results could affect the stability of the Taiwan Strait, Sino-United States relations and the global chip supply chain.

According to the numbers released by media and research institutions on January 2, DPP’s Lai was leading in the final pre-election polls by 3-5 percentage points over the Kuomintang’s candidate, New Taipei Mayor Hou Yu-ih. 

For example, a survey conducted by the United Daily News showed that Lai had a rating of 32% while Hou had 27%. The Taiwan People’s Party (TPP) candidate Ko Wen-je’s rating was about 21%.

However, Lai’s advantage seemed to be shrinking as Ko’s popularity among younger voters was rising due to his strong social media campaigns, Taiwanese commentators said.

Young prospective voters cheer for their candidate. Photo: Al Jazeera

They said some young DPP supporters may turn to vote for Ko as they were fed up with the cross-Strait political disputes and wanted their leaders to focus on improving people’s livelihood. If this is the case, KMT may still win the elections assuming Hou can gain trust from older voters. 

On Tuesday, an open letter purporting to be from former independent candidate Terry Gou and endorsing Hou began circulating on the Internet. The letter has Guo calling on his supporters to vote for the KMT in order to stop the DPP from renewing its term.

Guo’s office said the billionaire did not write the letter. United Microelectronics Corp (UMC) honorary deputy chairman John Hsuan told the media that some friends had written the letter representing Gou’s views. Hsuan said Gou might not have read this letter but probably would not deny its content. 

‘Trust Xi Jinping’

Meanwhile, former Taiwanese President Ma Ying-jeou also wanted to help Hou win but his recent comments have drawn controversy.

In an interview with Germany’s DW published on Wednesday, Ma says Lai is a long-term “Taiwan independence” promoter. He says Lai’s approach will only lead to a war in the Taiwan Strait while the US will avoid joining it as such a move would trigger a nuclear war. 

Ma says the best approach is to communicate and cooperate with China as Taiwan can never win a war against China. He says that, in cross-strait relations, Taiwan must trust Chinese President Xi Jinping, who he insists has no plan to invade the island. He also says Taiwan should avoid boosting its defense expenses as that would provoke China.

Hou said Thursday that he has different views from Ma. He said he would not have unrealistic hopes about cross-strait relations. He said he will push forward his 3D strategy, which refers to deterrence, dialogue and de-escalation, meaning that he will not cut defense expenses but will continue to maintain dialogue with Beijing. 

UMC founder Robert Tsao Hsing-cheng said Ma represents a small group of hypocritical Taiwanese business people, who support Beijing’s suppression of Taiwan. Tsao warned that if the KMT controls the government, it will gradually make Taiwan a replica of Hong Kong, which is now fully controlled by Beijing. 

Tsao also suspected that Ko’s “unlimited resources” in online campaigns might come from Beijing. But he did not provide any evidence.

Balloons and satellite

Tensions in the Taiwan Strait had been growing over the past month as dozens of high-altitude balloons, launched by China, had been seen flying over and around Taiwan.

On January 7, three Chinese balloons flew over the median line in the Taiwan Strait; one of them crossed Taiwan at its southernmost tip. 

Taiwan’s Ministry of Defense said the launch of mysterious balloons flying across the Taiwan Strait represents China’s “gray zone” harassment against the island. 

On Tuesday, the ministry sent a bilingual emergency alert to residents’ mobile phones, telling them that a satellite had flown over Taiwan. However, it mistranslated “rocket” into “missile” in the English version of the alert, which shocked many Taiwanese people. 

The ministry on Wednesday apologized for the mistranslation but insisted that the issuance of the alert had been necessary. President Tsai urged the public not to worry, ruling out the possibility that the launch of China’s satellite had been a political move.

President Tsai Ing-wen was in Kaohsiung and told people attending her talk on long-term care “It’s a satellite, not a missile. Don’t worry.” Photo: From CNA reporter in Kaohsiung, image taken by a member of the public.

Ling Tao, a spokesperson for the Kuomintang’s election campaign, on Wednesday said the Defense Ministry was being used by the ruling DPP as a tool to manipulate the coming elections.

He said the ministry had not issued any alert even though the People’s Liberation Army held large-scale military drills near Taiwan when then-US House Speaker Nancy Pelosi visited the island in August 2022. He questioned whether the DPP was using the Chinese Communist Party to intimidate Taiwanese people.

Read: Ruling DPP can still lose Taiwan’s presidency

Follow Jeff Pao on Twitter at @jeffpao3

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CNA Explains: Why some Singapore commuters are upset about transitioning to SimplyGo

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SINGAPORE: The Land Transport Authority’s (LTA) announcement that bus and train payment cards must be upgraded has roused online discussions about whether such a move was necessary.

What’s going to change, and why?

From Jun 1, adult EZ-Link cards and NETS FlashPay cards can no longer be used on buses and trains, LTA announced on Tuesday (Jan 9).

Commuters who are using these payment methods will have to upgrade their cards to SimplyGo EZ-Link cards or exchange them for NETS Prepaid Cards.

Concession card users will not be affected. Those who are using contactless bank cards and mobile wallets on phones or smartwatches are already on the SimplyGo platform, which was introduced in 2019, and also will not be affected.

Around two-thirds of adult public transport fares are currently paid through SimplyGo EZ-Link cards or bank cards.

“With the growing adoption of SimplyGo payment methods, and the legacy card-based ticketing system for adult commuters nearing the end of its operational lifespan, we are therefore transitioning all adult commuters to the SimplyGo platform,” said LTA.

The authority also highlighted the benefits of SimplyGo, such as topping up multiple EZ-Link cards using its mobile app; blocking transactions if a card is misplaced; and receiving notifications on fares and card balances.

Last March, the LTA announced that the EZ-Link and TransitLink SimplyGo mobile apps would be merged into a single platform. At the time, the authority said there would be no change to how commuters paid their fares. There was also no indication that older EZ-Link cards would be phased out.

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Analysis: Long road ahead for Malaysia as it renews efforts to cut dependence on foreign labour

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A UN International Organization for Migration report published in August last year said migrant workers in Malaysia could become undocumented because they face exploitation, abuse and unethical recruitment practices throughout the employment process, including the withholding of their passports.

According to the study, which interviewed 40 migrant workers, some paid up to US$5,000 in recruitment fees and migration-related costs and were promised a job verbally.

But on arrival, they discovered that the recruitment agencies had made false promises regarding the terms and conditions of employment, meaning they were deceived and unprepared for their actual living and working conditions.

While most of the workers arrived on a calling visa – a short-term visa typically issued to people who are invited by a Malaysian company or organisation to participate in business-related activities – the wait time to obtain a work permit in order to work legally in the country was three months on average.

Some waited longer, during which they struggled to finance living costs, repay migration-related debts, and save or remit funds to their families back home, the report said.

Mr Adrian Pereira, executive director of Malaysian migrant right’s group North-South Initiative, told CNA that “human traffickers” – referring to the recruitment agencies – had masqueraded as employers to bring in migrant workers and outsource them to other companies.

“The government has banned outsourcing in 2019, so by right there shouldn’t be any workers brought in unless jobs have been confirmed,” he said.

Malaysia Association of Cleaning Contractors president Noruddin Idris claimed that some of these “recruitment agencies” made photocopies of legitimate contracts awarded to other cleaning companies and manipulated them to pass off as their own.

These contracts were then used to dupe the authorities into allowing them to apply to bring in foreign workers.

“As long as the workers come in, they will get money. So once the workers get here, whether they have a job or not, that’s their problem,” Mr Noruddin told CNA.

Last June, Home Minister Saifuddin Nasution Ismail told reporters that 1,120 foreign workers who entered the country under the Foreign Worker Employment Relaxation programme had been classified as unemployed.

The programme, which loosened rules for hiring foreign workers, was implemented at the start of 2023 to help struggling industries meet manpower demand as the economy reopened post-pandemic.

Mr Saifuddin described the workers’ plight as a foreign labour dumping issue, saying that most of them were from Bangladesh and had been brought in to work in the cleaning and washing industry.

He said authorities had identified the recruitment agencies or employers involved in bringing in the workers, and would take action – including blacklisting – against them.

In the recent case of the Bangladeshi workers who were duped and remain jobless in Johor, authorities said on Jan 6 that the company that brought them in has been blacklisted from making new foreign worker employment applications and will be dealt with under relevant laws.

“The Home Ministry and the Human Resources Ministry take this matter seriously and will not compromise with any party involved in exploiting foreign workers, leading to forced labour and human trafficking,” the ministries said in a joint statement.

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Penang’s residents, businesses air complaints over 4-day water shutdown, posing test for its embattled chief minister

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EFFORTS TO STORE AND SAVE WATER 

In the days leading up to the water shutdown, Penangites shared images of water-filled containers on social media. 

“As a resident affected by this water disruption, I have … (stored) as much water as I can within the limited space of my single-storey terrace house,” said a netizen when asked by CNA on the measures that they are taking to ensure a sufficient supply of water. 

Meanwhile, Mr Joel, who lives in George Town, told CNA that he has taken to storing tap water and stocking up on drinking water. 

“We will (also) be eating out more at eateries which are open … and (will) pile up our dirty laundries for later,” said the 50-year-old teacher. 

A representative from local cafe Halzan noted that many affected people will likely choose to dine out to conserve water. 

“We see this as a business opportunity as a lot of households might choose to dine in or take away food, rather than cook at home,” they said. 

The cafe operates under a hotel and the representative estimates the hotel’s water storage can sustain the cafe’s business operations for up to two days. 

“We have also set aside some water for personal use and (hope that it will be) sufficient to help us get through this period,” they added. “Worse comes to worst, we will serve (our food and drinks) using paper plates and paper cups to reduce the water consumption.”

Some businesses and schools have also instructed their workers and students not to come in during the water shutdown. 

Ms Angela – a 37-year-old marketing executive who resides in Penang – told CNA that while her housing estate will not be affected by the water shutdown, her and her husband’s workplaces, as well as their children’s schools, are in the affected areas. 

“We have been asked to work and study from home but I am glad that this decision was made as I would prefer the kids to be home … as (our home) isn’t affected by the water shutdown,” she said. 

PRESSURE ON PIPES AND PENANG’S CHIEF MINISTER 

The chief minister had previously mentioned that the shutdown could be considered a state “emergency situation.” However, he stated that as the pipes were at constant risk of rupture due to high water pressure he wasn’t prepared to avoid action. 

“I could have closed my eyes and left it to a future candidate for chief minister to resolve the problem,” Mr Chow said to Free Malaysia Today. “But as leader of the state government and chairman of the Penang Water Supply Company (PBAPP), it is necessary for me to do this to prevent more severe losses for the people.” 

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RSAF regular admits picking up pregnant pangolin from park connector and selling it

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Tan found a buyer in co-accused Lee Kian Han, a 35-year-old Singaporean man, and agreed to sell him the pangolin for S$1,400.

They met at about 2am on Jul 4, 2023 at a Housing Board block in Jurong West where Lee paid him for the animal via PayNow.

That same day, the National Parks Board (NParks) seized the pangolin from Lee after detecting the advertisement on Telegram.

An NParks officer met Lee in a covert operation, after offering to buy the pangolin for S$1,600.

Tan was arrested at his home and the pangolin was taken to a centre for wildlife rehabilitation and examination.

An NParks vet identified it as a Sunda pangolin, a protected species. An animal health assessment report found the creature to be pregnant and “very hungry” on admission.

The prosecutor said NParks has been unable to recover the sum of S$1,400 from Tan to date. At the last hearing, the prosecution had indicated that they would ask for a fine of S$8,000 to S$10,000.

Tan’s lawyer, Mr Kalidass Murugaiyan, highlighted that his client has been donating to Wildlife Conservation Society monthly.

The judge then asked why doesn’t Tan make a donation of S$1,400 to cover the sum. The defence lawyer said he would liaise with the prosecutor on this.

The judge called for reports assessing Tan’s suitability for probation and community service and adjourned the case to Feb 29 for sentencing.

For selling a protected wildlife species, an offender can be jailed for up to two years, fined up to S$50,000, or both.

CNA has contacted MINDEF for more information.

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Wife and sons of former Malaysian finance minister Daim Zainuddin assisting in anti-graft investigations

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PUTRAJAYA: The wife of Mr Daim Zainuddin and their two sons are assisting in Malaysia’s anti-graft agency’s investigations against the country’s former finance minister. 

The three arrived at the Malaysian Anti-Corruption Commission (MACC) headquarters in Putrajaya on Wednesday (Jan 10) morning to give their statements in the probe against Mr Daim, who is the subject of an anti-graft investigation. 

Mr Daim had earlier accused Malaysian Prime Minister Anwar Ibrahim of initiating a “political witch-hunt” against him and warning that he will take “appropriate action in due course”.

In a brief statement to members of the media before entering the MACC premises, Mdm Nai’mah Abdul Khalid said she and her sons would give their full cooperation to the agency as required by the law. 

When contacted by Bernama, MACC’s Anti-Money Laundering Division’s director Mohamad Zamri Zainul Abidin confirmed that the agency took statements from the three to facilitate investigations under Malaysia’s anti-money laundering laws. 

In December, MACC said the investigation against Mr Daim was based on information obtained from the Pandora Papers – a trove of documents, leaked in 2021, that revealed the hidden wealth of world leaders, billionaires and celebrities who used offshore companies to acquire mansions, private jets and stakes in companies.

Mr Daim had said in the wake of the leak that his business dealings, as revealed in the Pandora Papers, were legitimate. He added that he was a “successful and wealthy” businessman long before he entered politics and that taxes had been fully paid for his businesses and income. 

In the same month, CNA reported that the multi-million-dollar Ilham Tower, a prime commercial building owned by the Daim family, was seized after he refused to declare his and his family’s financial holdings.

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