Malaysia

Penang hotel bosses flouting labour laws, mistreating and firing staff

Some let go without notice in full disregard of Employment Act 1955, says union

Updated 5 years ago · Published on 26 Feb 2021 7:00AM

Penang hotel bosses flouting labour laws, mistreating and firing staff
Some employers are passing on their burdens to their workers, citing the pandemic as a reason to ignore labour laws. – Bernama pic, February 26, 2021

by Ian McIntyre

GEORGE TOWN – The pandemic has brought out the worst in some Malaysian employers.

This is especially so in the hospitality sector, which has seen instances of contracts not being respected and staff being laid off in ways that flout the Employment Act 1955.

As some unionists and affected workers have attested here, the pandemic has caused untold suffering as local employers have been caught off guard by the inconsideration of their bosses, who have been hit hard by challenges brought on by Covid-19.

From lockdowns to the global economic recession, some employers were forced to pass their burdens on to their workers, citing the pandemic as a reason to ignore labour laws.

“There is no longer industrial harmony, the virus has stolen it,” said a marketing executive who declined to be named.

Deceiving staff

Over the past week, tale after tale of alleged illicit lay-offs were shared with The Vibes here.

Last April, some 100 workers were summoned to a resort to prepare for reopening after the first movement control order (MCO) was lifted in view of the dip in the number of Covid-19 infections.

Under the law, workers are entitled to two months’ notice or two months’ salary in lieu if they are terminated immediately. – Bernama pic, February 26, 2021
Under the law, workers are entitled to two months’ notice or two months’ salary in lieu if they are terminated immediately. – Bernama pic, February 26, 2021

Upon arriving, they were instead slapped with a termination notice, told to pack up, collect their remaining wages and bid adieu.

When queried as to why they employed such deception, the hotel management replied that the owners were afraid the affected workers may have vandalised the property if they had been told earlier.

However, under the law, workers are entitled to two months’ notice or two months’ salary in lieu if they are terminated immediately.

The staffers are now seeking legal remedy from the employer, a conglomerate with diversified business interests in China, Kedah and Penang.

Meanwhile, some hotels have retrenched or offered their workers voluntary separation schemes in a bid to get rid of high-salaried staffers.

National Union of Hotel, Bar and Restaurant Workers Peninsular Malaysia secretary-general Rosli Affandi said he has received such complaints.

“We cannot verify all cases as we still need to investigate them, but we are appealing to employers and hotel owners: our union members are an understanding bunch and will not resort to vandalism.”

The Malaysian Trades Union Congress is seeking the enactment of an emergency employment protection scheme, in view of the far-reaching effects of the pandemic. – Bernama pic, February 26, 2021
The Malaysian Trades Union Congress is seeking the enactment of an emergency employment protection scheme, in view of the far-reaching effects of the pandemic. – Bernama pic, February 26, 2021

Ignoring the law

Rosli also said that it is baffling that the government is turning a blind eye to the woes of the tourism sector, as it reaps benefits from the industry as well.

“Most items purchased in hotels are charged a government tax of 6%.”

Rosli said some companies are also ignorant about the Employment Act.

“Company owners must first reach an agreement with their unions before employees’ salaries can be reduced,” Rosli said.

“But in many cases, the employers just cut the salaries and inform their employees later.”

Realising this, the Malaysian Trades Union Congress sent a memorandum to Human Resource Minister Datuk Seri M. Saravanan last April seeking the enactment of an emergency employment protection scheme, in view of the far-reaching effects of the pandemic, said Penang MTUC secretary K. Veeriah.

“There is no conclusion for now,” said Veeriah.

Malaysian Bar president Salim Bashir also lent his support to the cause, saying existing laws may be inadequate to cope with the ill effects of the pandemic. – The Vibes, February 26, 2021

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