THE proposed Employment Insurance System Bill (EIS) will not only protect employees who are made redundant but those who resign due to threats or sexual harassment.
Under the definition of loss of employment under the Bill, employees cannot make the insurance claims if they resign voluntarily.But a resignation is not deemed voluntary if it is due to any threat to the employee or family member or sexual harassment towards the worker.
The Social Security Organisation (Socso) will have to verify the employee’s claims of threats or sexual harassment to determine if they are entitled to the loss of employment insurance benefits.
The revised Bill was retabled by Human Resources Minister Datuk Seri Richard Riot, who said the Government hoped to pass the law during the current meeting which ends on Nov 30.
The scheme aims to provide a safety net for some 6.5 million workers in the event of loss of employment.
The revised Bill maintained that monthly contributions to the scheme is to be split 50/50 between employers and employees.
Monthly contributions are based on fixed rates ranging from the lowest at 10 sen for those earning RM30 a month to RM59.30 a month based for a maximum insured salary sum of RM4,000.
Under the EIS, laid-off employees will be able to claim a portion of the insured salary for a period of between three and six months.
For example, under the job search allowance, an unemployed worker can get 80% of monthly wages for the first month, 50% for the second month, 40% for the third and fourth months, and 30% for the fifth and sixth months.
Retrenched workers will also be entitled to early re-employment allowance, reduced income allowance and training allowance.
The EIS also covers staff involved in a voluntary or mutual separation scheme, or those made redundant due to business restructuring or closure.
The new law also offers protection for constructive dismissal.
Employers are not allowed to reduce an employee’s salary indirectly or directly owing to contributions to the scheme.
Failure by employers to comply with the scheme or employees making false claims could lead to a maximum RM10,000 fine or a jail term of up to two years, or both.
The EIS will be administered by Socso. It was reported that around 38,000 workers lost their jobs in 2015 and the number increased to more than 40,000 last year.
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