Factory to face legal action for retrenching workers
SUNGAI PETANI: The Labour office here will soon take legal action against a factory for retrenching 99 workers on too short a notice.
The office’s senior assistant director Mohd Jarjis Abdullah said the electronic components factory had notified his office on Dec 30 that it would retrench the local workers on Feb 9, but instead retrenched them on Jan 9.
He said this was against the requirement under Section 63 (1) of the Employment Act 1955, which required an employer to inform his office 30 days before any retrenchment or temporary lay-off exercise.
The company is liable for a fine of up to RM10,000 if convicted, he said. Although the company had settled retrenchment benefits totalling RM533,102 to the affected engineers, clerks, technicians and supervisors, it had not abided by Labour regulations to inform his office 30 days before taking the action.
It has left the affected workers in a dilemma as they had too short a time to look for alternative jobs, he told a press conference here Tuesday. Mohd Jarjis said his office had also learnt that the same company, which had 1,229 workers including 431 foreigners, was also planning to retrench 226 operators, all locals, in phases on Jan 31 and Feb 28.
“Our investigation showed that the workers were informed verbally but we have not been notified so far,” he said. He said it was also an offence under Section 60N of the Employment Act 1955 to terminate locals and retain foreign workers, adding that offenders were liable to be fined up to RM10,000 if convicted.
He said from Jan 1 until Tuesday, Jan 13, 165 factory workers -- 156 foreigners and nine Malaysians -- from six companies here had been retrenched.
Four factories had informed his office that they would lay off 529 workers, including 22 foreigners, temporarily next month, he said - The Star.
The office’s senior assistant director Mohd Jarjis Abdullah said the electronic components factory had notified his office on Dec 30 that it would retrench the local workers on Feb 9, but instead retrenched them on Jan 9.
He said this was against the requirement under Section 63 (1) of the Employment Act 1955, which required an employer to inform his office 30 days before any retrenchment or temporary lay-off exercise.
The company is liable for a fine of up to RM10,000 if convicted, he said. Although the company had settled retrenchment benefits totalling RM533,102 to the affected engineers, clerks, technicians and supervisors, it had not abided by Labour regulations to inform his office 30 days before taking the action.
It has left the affected workers in a dilemma as they had too short a time to look for alternative jobs, he told a press conference here Tuesday. Mohd Jarjis said his office had also learnt that the same company, which had 1,229 workers including 431 foreigners, was also planning to retrench 226 operators, all locals, in phases on Jan 31 and Feb 28.
“Our investigation showed that the workers were informed verbally but we have not been notified so far,” he said. He said it was also an offence under Section 60N of the Employment Act 1955 to terminate locals and retain foreign workers, adding that offenders were liable to be fined up to RM10,000 if convicted.
He said from Jan 1 until Tuesday, Jan 13, 165 factory workers -- 156 foreigners and nine Malaysians -- from six companies here had been retrenched.
Four factories had informed his office that they would lay off 529 workers, including 22 foreigners, temporarily next month, he said - The Star.
