Highlights of the EIS Bill 2017

becomes void due to any reason other than voluntary resignation, expiry of the contract of service, mutual consent, completion of work in accordance with the contract of service, retirement or misconduct. Employees whose contract of service is terminated due to voluntary separation schemes, constructive dismissal, threats or sexual harassment at the workplace or closure of the workplace are also protected.

The insured are provided with benefits such as job search allowances, early reemployment allowances, reduced income allowances, training allowances and training fees.

The insured will be able to claim a fraction of the insured’s salary for a period between three and six months, subject to certain conditions being met. In addition, re-employment placement programmes will be made available to those who lose their employment.

An insured may claim for the benefits by submitting an application to Socso within 60 days starting from the date he loses his employment. Any claims made after the 60 days period will not be entertained.

That said, any claims under the EIS will not operate as a bar to other claims or reliefs sought under the Industrial Relations Act 1967, the Employment Act 1955, the Labour Ordinance of Sabah, the Labour Ordinance of Sarawak and the Minimum Retirement Age Act 2012.

But if any of the above claims or reliefs are pending, then Socso will not make a determination on the question of loss of employment in respect of the claim for benefits until the above claims have been resolved.

The government’s plan to implement EIS dates back to 2010 when the prime minister unveiled the New Economic Model (NEM). The NEM sets out, amongst others, policy measures for intensifying human capital development through work place transformation which aims to enhance workers safety net through the introduction of EIS.

This idea has not met the support of some employers and trade unions. But by passing the EIS Bill, the government has raised the ante as the EIS will no doubt benefit thousands of employees who lose their jobs every year.

After all, when a man loses his job, he also loses his ability to feed and clothe himself and his family. It is hoped that the fund will provide a financial buffer during the period between his loss of employment and his re-employment.

Contributed by Chelsea Chan of Christopher & Lee Ong (www.christopherleeong.com).