MARCH 25 — The Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, announced on March 25, 2020 that the movement control order (“MCO”) which has been in force since 18th March 2020 will be extended until 14th April 2020. Epidemiologist Datuk Dr Awang Bulgiba Awang Mahmud has opined that the...
MARCH 25 — The Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, announced on March 25, 2020 that the movement control order which has been in force since 18th March 2020 will be extended until 14th April 2020.
Meanwhile, the President of the Small and Medium Enterprise Association of Malaysia, Datuk Michael Kang, estimates that up to one million Malaysians could lose their jobs if 10 per cent of SMEs are forced to close for good. In light of the MCO extension, and the legal requirement to pay the salaries of employees, employers may have to resort to retrenching employees in order to keep their businesses afloat. In fact, it is reported that as at March 20, 2020, 2,041 employees from the hotel industry have been retrenched.[2016] 2 MLJ 848, at paragraph 16, the Court of Appeal referred to “...
Due to the Covid-19 pandemic and the ongoing MCO, there is likely to be a surplus of labour and a reduction in profits giving rise to a bona fide need for an employer to reorganise his/her business by way of retrenchment.[2017] MLJU 1718, at paragraph 78, Asmabi Mohamad J held that:
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