Human Resource TOP 5 Frequently Asked Questions on Movement Control Order (MCO)

The impact of the Movement Control Order has brought challenges which cannot have been foreseen by any Human Resource Officer. Human Resource Officers are not only answerable to their respective superiors and the company at large but are also the face of the company in dealing with its workforce.

These are the Top 5 questions faced by Human Resource Officers with answers by industrial relations experts IRlaw2U.my:
 

1) Does the company have to pay their employees even though they are required to close during this MCO period?

Yes, The Ministry of Human Resources have issued its guideline via its official FAQs which have clearly provided that employers are required to pay their employees during this period.
 

2) My Company is under the essential services or has received approval to operate but my employee has not returned to work, Do I still have to pay my employee?

Employees that do not report to work without valid justification during this period will be deemed unpaid as per the FAQ guideline by the Ministry of Human Resource guideline. This however does not mean employees are at liberty not to attend work and can be subjected to disciplinary process if they do not possess valid justifications.
 

3) My company has received approval to operate or is categorized the under essential services but with reduced number of employees. Can the company not pay the salary of those employees that are unable to work due to the restriction imposed or deem it unpaid?

No, the employer is still required to pay the salary of those employees.
 

4) Can an employer impose pay-cut/unpaid leave/deduction of annual leave during the MCO Period?

Any act of pay-cut/unpaid leave/utilization of annual leave must be with the agreement of the employee and cannot be forced on employees.
 

5) Can my company impose pay-cut with the consent of employee to qualify for the Worker Subsidy Programme (WSP) announced by the government?

No, the FAQ issued by PERKESO has stated that employers are not allowed to impose pay-cut on employee during the WSP period and three months thereafter.

Do you have questions or issues not answered above? Good news: IRlaw2U.my has opened an MCO Hotline for bosses and HR to enjoy a FREE 15 minutes expert consultation on a first come, first serve basis.

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