What happens to my annual leave and salary during the Movement Control Order (MCO) ❓
We look at the 4️ Most Common Concerns For Many Employees !!
2. If you are not required to work from home, are employers allowed to treat it as unpaid leave 🚫?
This is a touchy issue that needs special attention.
Since the MCO is mandated by the government, the employees have no control over it and it is unreasonable to penalize them for not working.
However, many companies will be in difficult financial situation due to the inability to operate and may be facing financial difficulties.
This is a difficult time for everyone involved and employers who are financially strained may negotiate with employees about reducing salary or offer other incentives once things return to normal.
Salary reduction must be fair and in good faith, although that can be subjective, and the reduction must be applied across all levels of the company.
Proper documentation outlining the terms must be issued and both parties must sign to acknowledge the special arrangement made.
3. Can employees be retrenched during such a time?
Retrenchment is never a subject to take lightly but struggling companies can retrench workers to reduce their workforce.
However, employers are advised to explore retrenchment only after exhausting other options such as limiting workplace and temporary salary reduction.
We hope that it will never come to that and the situation is brought under control soon.
4. Is the government doing anything to help employees?
Any reduction of salary negotiated must be reported to the Ministry of Human Resources and failure to do so will be an offence which acts as a safeguard against abuse. In addition, contributions to EPF and SOCSO must continue unless there are announcements by the government.
The government has also announced that employees who end up having to take unpaid leave will receive RM 600/month in cash assistance to tide over this time.
The Covid-19 outbreak is an unprecedented global crisis 🌍 , and everyone is struggling in their own ways 😖.
The most important thing for employees and employers to do now is to openly communicate and come to a win-win situation for all stakeholders. 🤝🤝