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The workers are owed salaries for periods of between six and nine months.
Redzwan Ramlee, a representative of the former employees, said the agreement was reached with representatives from Kedah Menteri Besar Incorporated (MBI) at the state labour department here.
Based on the agreement, he said, five months’ salaries will be paid in full to the former employees starting next month, and the remaining arrears will be paid in monthly instalments over the next two-and-a-half years.
Redzwan said the former employees considered the solution the best option for all parties.
He said it is also in line with the advice given by human resources minister Steven Sim to resolve the matter amicably.
Kedah MBI chief executive officer Zafir Annuar Ghazali confirmed that the matter had been resolved.
The employees had filed complaints with the Kedah labour department over the non-payment of their salaries.
Last month, menteri besar Sanusi Nor announced that KAHB had ceased operations because of its lack of financial viability.- FMT
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