BILL TO PRO­TECT RE­TRENCHED WORK­ERS TABLED

Three to six months of un­em­ploy­ment ben­e­fits for those in pri­vate sec­tor

New Straits Times - - News - HANA NAZ HARUN AND ARFA YUNUS KUALA LUMPUR news@nst.com.my

THE Em­ploy­ment In­sur­ance Sys­tem Bill (EIS), which aims to pro­tect those who have lost their source of in­come, was tabled in Par­lia­ment yes­ter­day.

The bill seeks to bet­ter pro­tect more than 6.5 mil­lion work­ers in the pri­vate sec­tor through un­em­ploy­ment ben­e­fits for be­tween three and six months.

It also pro­posed that those who were laid off, re­signed due to cer­tain rea­sons and those un­der­go­ing vol­un­tary or manda­tory sep­a­ra­tion schemes would be cov­ered un­der the job-loss cov­er­age sys­tem.

Un­der EIS, those af­fected would be en­ti­tled to job search and train­ing al­lowances.

In the first month of un­em­ploy­ment, they would re­ceive a job search al­lowance, which is 80 per cent of their last-drawn salary, up to RM4,000.

In the sec­ond month, it would be re­duced to 50 per cent, 40 per cent in the third and fourth months, and 30 per cent in the fifth and sixth months.

The bill was tabled for its first read­ing by Hu­man Re­sources Min­is­ter Datuk Seri Richard Riot in the De­wan Rakyat yes­ter­day.

On May 1, Prime Min­is­ter Datuk Seri Na­jib Razak an­nounced that the gov­ern­ment had al­lo­cated RM70 mil­lion for in­ter­est pay­ment un­der EIS for pri­vate sec­tor em­ploy­ees, who would get bet­ter pro­tec­tion un­der the Em­ploy­ees’ So­cial Se­cu­rity Act 1969.

It was mooted in 2014 to pro­tect em­ploy­ees fac­ing re­trench­ment and is ex­pected to be en­forced on Jan 1. Ad­di­tional re­port­ing by Teh Athira Yusof

FILE PIC

A Peo­ple’s Hous­ing Pro­gramme project in Per­ling, Jo­hor Baru.

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