PUTRAJAYA — Sept. 24, 2018: Utusan Melayu (M) Berhad may face action under the Employment Act if it fails to pay compensation under a voluntary separation Scheme (VSS) in one lump sum within seven days of the date of termination to employees.
The Employment (Termination and Lay-Off Benefits) Regulations make clear that payment must be made in one lump sum.
The company can be fined up to RM10,000 for each case, said Deputy Human Resource Minister Datuk Mahfuz Omar in response to a report that the company would pay the compensation in monthly instalments for a year to 800 employees who are offered the scheme.
“So far we know this from media reports. The employees should be brave to come forward and make an official report (to the Labour Department) because without the report we cannot act,” said Mahfuz.
Director-General of the Labour Department, Datuk Mohd. Jeffrey Joakim, said his department had been informed that the company was still discussing with the National Union of Journalists (NUJ) for a solution.
Employees who are terminated under a VSS can apply for aid of RM600 a month for three months under the Employment Insurance System of the Social Security Organisation.
Last Saturday, NUJ said in a statement described the VSS offer made by Utusan to 800 of its 1,500 employees as insincere, dishonest and dubious and made in haste without discussing with the union. — Bernama