MTUC wants employers against EIS to set aside contribution payout for retrenched employees
20 October 2017 Print page
KUALA LUMPUR: The Malaysian Trade Union Congress (MTUC) is suggesting to employers that they should set aside a contribution payout to employees who are terminated or retrenched, if they against the Employment Insurance System (EIS).
MTUC president Abdul Halim Mansor said the contribution can be made under the Social Security Organisation (Socso) or other similar policies that will protect employees under the Employment Termination Layoff Benefit (ETLB).
He said employers need to be held accountable and be responsible towards employees terminated or retrenched.
“How can they survive with the only salary that they have after they are retrenched? They are not protected under any scheme if the employers do not make any such contributions.
“I’m suggesting to these employers that if they do not want to keep to the employment insurance scheme, they should at least set aside some funds for these employees, perhaps under Socso or any other 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 an unfair system to them,” he told members of the media during a press conference Thursday.
He said the ETLB or workers, who are under collective agreement (CA), are the sole responsibility of an employer under the relevant laws and that the employer’s obligation is important.
The EIS is primarily aimed at helping provide financial assistance to private workers who lost their jobs until they find new employment.
Abdul Halim also said MTUC has always agreed with the implementation of the scheme and thanked the Federal government for the idea.
He also voiced out his frustration that there were some employers who twisted statements on the EIS which could cause confusion among the public.
“I hope the government continues with the scheme, for the future benefit of retrenched workers,” he added.
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, will be contributed equally by both employers and employees.
Source : https://www.nst.com.my/news/nation/2017/10/292766/mtuc-wants-employers-against-eis-set-aside-contribution-payout-retrenched