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With the Covid-19 🦠 outbreak at full swing now, the government has issued a partial lockdown 🔒until the end of March in a bid to contain the spread. 😔 

Many companies and businesses are forced to halt operation and are affected financially with no revenue during this period.

To mitigate some of the losses and cash strain, there have been reports that some employers have resorted to forcing their employee to go on unpaid leave or withhold salary. 💸💸

For many employees, what they are most concerned is whether they can be compelled to take annual leave?

The short answer is “No”.🙅🏻

We look at the 4️  Most Common Concerns For Many Employees !!


Odoo CMS - a big picture

1. Can employers request employees to work from home 🏠 during the MCO ?

Yes. Employers can request their employees to work from home as the MCO is a restriction of movement,
not a nationwide holiday (so please stay at home!)



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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.



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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.



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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. 🤝🤝


We at Room Plus would like to once again remind everyone to stay at home, drink lots of water and keep your hygiene clean.
If you would like to find out more about Room Plus,
do not hesitate to
WhatsApp us @ 012- 9694 865

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