The group's executive director says MTUC has made a bad proposal. FMTNews MEF retrenchment
The Industrial Relations Act 1967 recognises the right of employers to terminate the services of workers by reason of redundancy or business reorganisation, says MEF.
Reacting to a call by the Malaysian Trades Union Congress , MEF executive director Shamsuddin Bardan warned of “serious implications” on the economy if Putrajaya were to take it up.It would also run contrary to the Industrial Relations Act, he added, noting that the 1967 law recognises the right of employers to terminate the services of workers by reason of redundancy or business reorganisation.
Solomon said Putrajaya’s recently announced wage subsidy package had failed to protect 30% to 40% of workers in small and medium-sized enterprises. Those earning between RM4,000 and RM8,000 a month were at their employers’ mercy, he added. “Making it illegal to retrench employees will be most unfair to employers, even if it is limited to the MCO period and its aftermath,” he said.Shamsuddin also said employers would usually try other cost cutting measures before laying off employees.
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