Malaysia's HR Ministry on steps taken to assist employees affected by Malindo's layoffs

Malaysia's Human Resources Ministry (MOHR) has assured staff affected by Malindo Airway's recent layoffs that it is working with the airline to ensure their rights are protected, and that they will receive proper assistance in the process.

In a statement on Wednesday (4 November), Human Resources Minister M Saravanan said the Ministry, through its agencies, the Department of Industrial Relations (JPP), Department of Manpower (JTK) and the Social Security Organization (SOCSO) had met with the management of Malindo to discuss the matter. 

Apart from the compensation provided by the employer, the noted that MOHR will also ensure that all employees of the airline receive unemployment benefits through the Employment Insurance System (SIP). At the same time, SOCSO will assist them in finding jobs through the MYFutureJobs portal. 

In line with this, Minister Saravanan has advised employees involved in the retrenchment to immediately submit their SIP benefit application online through the SIP portal, or at any nearby SOCSO office.

The employees are also eligible to participate in training programmes (reskilling, upskilling) provided by SOCSO, where training fees are fully borne by the Government.

In Tuesday's discussion, the airline's management also stated that they had received assistance through the Employee Retention Programme (ERP) for the months of April and May 2020. April's payout has benefitted 2,112 employees through payments totally RM1.26mn, while May's payout was presented to 2,478 employees through payments totalling RM1.48mn.

As a result, all employees of the company who received the ERP were not laid off during the month, and Malindo has confirmed that all payments received have been channelled to the employees involved.

At the same time, according to SOCSO's records, the airline had received Wage Subsidies amounting to RM240,000 for July and August 2020, for 200 employees.

Last, Minister Saravanan also said that for the 439 employees who received notices of unpaid leave, lasting one year, they can assume that their service contract has been terminated and can subsequently submit a job loss claim under SIP for assistance, in finding  a new job.

Background of Malindo Airways' layoffs

Due to the heavy impact of the COVID-19 pandemic on the aviation sector, which thus affected business for Malindo Airways, the company has laid off 2,647 staff since 1 November 2020. It also offered unpaid leave notices (for a period of one year) to 439 employees, in the hope that the economy will recover and they will be called back to work.

A further 347 were offered the Voluntary Separation Scheme, while the remaining 1,861 employees were given notice of retrenchment with minimum compensation under the Employment Act 1955.

Photo / 123RF