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HR Insights: Covid19 Day 2

Malaysia Government has given exception to some manufacturers to continue operations so long as they are running on a skeleton crew and observe proper social distancing.

Some FAQ:

Q1: Can my company shut down as a measure to recover it's losses suffered since last few months?

A1: Yes, shut down can be done as a measure for cost cutting. Follow the Employment Act as guidelines.

Q2: Can companies cut pay or force unpaid leave as a measure of cost cutting?

A2: While the Employment Act says no pay cuts without the consent from employee, this can be done with mutual consent and as a temporary measure to save the company. However this measure is best done after the RMO period.

Q3: How do we justify and get consensus on pay cuts for people earning RM 2k salary and below?

A3: Employees in Semananjung earning RM2k and in Sabah and Sarawak earning RM2.5k and below are protected by the Employment Act and SLO. Discuss the current situation and seek their understanding to minimise operations costs via pay cuts.

Q4: Can our company do retrenchment to cut cost?

A4: Retrenchment can be done as a last measure to safe a company from loosing money. However such exercise should be strategic and not done hastily without proper planning.



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