CCIFM Input on Covid-19 : HR Management

The recent extension of the lockdown period to 14 April (with in mind its potential extension) has been followed by the announcement by our Prime Minister of an economic stimulus package to allow individual and corporate support during this critical period when most of human and economic activities are very limited.

You will find below a summary from the Malaysian Employer Federation and other relevant bodies on the HR related measures lined up so far to address the issues at hand and various agencies such as SOCSO and KWSP have put forward options which can contribute significantly to the improvement of the situation. 

•    Economic Stimulus Package - Circular from Malaysian Employers Federation
•    National Caring Aid (BPN) - Ministry of Finance 
•    Wage Subsidy Programme to Benefit 3.3 Million Private Sector Workers - Ministry of Human Resources 

However, many companies are today very concerned with their HR management in a period during which they will have no or little revenues but will have to fulfill their obligation as employer and pay salaries to their permanent employees, whether they are working or not.

We have been approached recently by several Members looking for solutions to alleviate their concerns in compliance with Malaysian law. 

We consistently emphasize that the matter should be taken seriously, since in principle an employer is not allowed to vary the core terms of a contract of employment (including salary and benefits) without the consent of the employee.The same applies to non voluntary paid or unpaid leave.Failing this, the employer may have to face the consequences of a claim for "constructive dismissal" which is deemed similar to a wrongful or unfair dismissal.

However, this is only a simplified summary of a complex situation and a range of options is available to employers about how to obtain consent and how to document it.We can provide tailor-made counsel taking into account the circumstances of each individual situation. 

In response to the challenge posed by the COVID19 related lockdown to its Members and related matters in connection with labour relations, CCI France Malaysia has set up a dedicated consulting team covering both the legal side under the responsibility of Maitre Philippe Girard-Foley, our avocat-conseil (pgf@mfcci.com) and the HR side under the responsibility of Ms Elisabeth Laubel, our Human Relations specialist (elisabeth@mfcci.com).

Our legal and HR support team have prepared a questionnaire which we thank you in advance to complete and return to us as soon as possible in order for us to convey to the Malaysian Authorities the position and situation of French companies in Malaysia

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