Employers retrenching staff without informing Labour Dept - Saravanan

Human Resources Minister M Saravanan today revealed a worrying retrenchment scenario due to the Covid-19 pandemic where some employers terminated workers without informing the Labour Department.

He said Section 63 of the Employment Act 1955 clearly stated that employers who carry out retrenchment, whether permanent or temporary retrenchment, voluntarily and also salary reduction, must fill an employment notification Retrenchment Form (PK Form) and submit it to the Labour Office at least thirty days before the termination or salary reduction.

Saravanan said the failure of the employer to submit the PK Form was detected when there were significant disparities when comparing the data received in the PK Forms from employers with the Employment Insurance System (EIS) forms filed by employees who have been terminated.

According to him, the number of employees laid off via data received from PK Forms from January to July is 44,426 local workers, and the figure is low when compared to the number of employees who have filled in EIS forms which totalled 67,068 people.

“The difference of 22,642 people is not a small number but is very significant and this is something that should not be underestimated,” he said in a statement today.

Saravanan said the Human Resources Ministry would take legal action against employers who are found to have deliberately not filled and submitted the PK Form after layoffs or salary reductions.

“The government through the Human Resources Ministry views this matter very seriously and will not compromise with any employer who fails to comply with the regulations under the Employment Act,” he said.

He said the PK Form was important data in identifying workers in need of assistance in terms of job search and matching, especially in the government’s efforts to combat the Covid-19 pandemic as well as ensuring this will drive the country’s economy.

- Bernama