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LETTER | In a survey conducted by UNI-MLC and with feedback received from both unions and non-unionised workers in Malaysia, we find that workers are facing great challenges by receiving unexpected notice of terminations from their respective companies.

Some companies have retrenched their workers by giving them short notices and some workers are even forced to sign their notices of termination. This happens when the company claims to be running at a loss.

The payment of retrenchment benefits and other payments are not in accordance with the provisions of the Employment Act 1955 and the collective sgreements respectively.

What makes it worse is that these companies failed to inform the Labor Department but unilaterally decided to close down their plants without informing the human resources ministry.

UNI-MLC research also shows that some companies gave termination notices on a very short notice and made the workers panic because they have families to look after.

The workers are shocked with the company’s last-minute decisions and have no means of reacting adequately to the situation after losing their jobs.

When the workers refuse to sign the acceptance letters, the company starts putting pressure by threatening and harassing them to sign the acceptance letters as if they are signing it voluntarily.

Some companies even claim they are not making profits and they have to wind up the company and shift their operations to other countries. By doing so, they are putting their workers in a very difficult position.

In some cases, companies are retrenching local workers and replacing them with migrant workers. Where is the justice?

UNI-MLC urges the ministry of human resources via the Labor Department to intervene and take stern action against all companies who refuse to respect and follow the provisions under the labor legislation of the country.

This is a very serious matter and more and more workers are losing their jobs and there must be a check and balance by the authorities.

The companies who do not comply with provisions under our labour laws must be brought to book and penalised.


The writer is president, UNI-Malaysia Labour Centre.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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