‘SET ASIDE FUNDS FOR RETRENCHED STAFF’
Employers should do so if they reject workers insurance scheme, says MTUC
THE Malaysian Trade Union Congress (MTUC) is suggesting that employers should set aside funds for employees who are terminated or retrenched, if they are against taking part in the Employment Insurance System (EIS).
MTUC president Abdul Halim Mansor said the contribution could be made under the Social Security Organisation (Socso) or other similar policies that would protect employees under the Employment Termination Layoff Benefit (ETLB).
He said employers needed to be held accountable and be responsible towards those who were terminated or retrenched.
“How can they survive with only the salary that they earn after they are retrenched?
“They are not protected under any scheme if the employers do not make such contributions.
“I’m suggesting to employers that if they do not want to take part in the employment insurance scheme, they should at least set aside some funds for their employees, perhaps under Socso or a termination benefit scheme.
“If they feel that the 0.2 per cent contribution is a burden for them, then I suggest that they put aside some funds that they are willing to give to the employees.
“The proposal should also be considered by the government if employers or the Malaysian Employers Federation (MEF) feels that the EIS was unfair to them,” he said yesterday.
He said ETLB or workers, under a collective agreement, were the sole responsibility of an employer under relevant laws and that the employer’s obligation was important.
The EIS is aimed at providing financial assistance to private sector workers who lose their jobs until they find new employment.
Halim said MTUC had always been in favour of the scheme and thanked the Federal Government for the idea.
He voiced his frustration over the fact that some employers had twisted statements that were made on the EIS, which caused
confusion among the public.
The EIS, which will be tabled at the Dewan Rakyat next week, will see the contribution rate reduced from an initial 0.5 per cent to 0.2 per cent.
The amount, Human Resources Minister Datuk Seri Richard Riot said, would be contributed equally by employers and employees.