MEF urges gov’t to allow firms to give staff 5 days unpaid leave

In light of how most businesses will need to close during the movement control order, the Malaysian Employers Federation (MEF) has opined that they will not be able to afford giving employees two weeks of paid leave.

Speaking to Oriental Daily, the federation’s executive director Shamsuddin Bardan (photo) suggested that businesses be allowed to give staff five days of either unpaid or annual leave.

This, he said, would help lessen the financial strain on business owners.

“We have no objection to the government’s 14-day movement control order to prevent the Covid-19 virus from spreading.

“However, since employers will not be able to operate as usual or earn their usual revenue, they won’t be able fully cover 14 days of paid leave for their employees.

“The 14-day order begins tomorrow. To balance the interests of employers and employees, we recommend that employees be given a minimum of five days off. 

"If the employee does not have enough leave, then allow them to take a minimum of five days of unpaid leave. The employer can then cover for nine days of paid leave.

“This will allow both employees to work from home and employers to keep their businesses afloat,” he was quoted as saying.

Elaborating, Shamsuddin pointed out how the RM20 billion Economic Stimulus Plan was put in place before the government issued the order.

The latest order did not come with any plan to revitalise the economy, he noted to the Chinese-language newspaper.

Announced by Prime Minister Muhyiddin Yassin last night, the order stipulated that all non-essential businesses and services must close from midnight tonight (March 18) to March 31.

Only essential services - like supermarkets, grocery shops, convenience stores and premises offering water, electricity, energy, telecommunications and postal services - can remain open.

Muhyiddin also announced that workers who earn RM4,000 or less per month who take unpaid leaves will qualify for RM600 in financial aid per month, for a maximum of six months.

This will be implemented through the Employment Insurance Scheme (EIS).

These measures are a part of the government’s plan to contain the Covid-19 outbreak. - Mkini