Retrenchment insurance in the works, says Najib

Government looking into workers' insurance scheme to cover their expenses while looking for new jobs.

KUALA LUMPUR: Prime Minister Najib Razak has said the government is looking into the details of a proposed workers insurance system (WIS) to enhance the social security of workers and facilitate the employers method of conducting business.

The proposed scheme would involve the sharing of responsibilities by employers.

Details will be announced after all parties had been consulted, he said after launching National Workers Day celebrations.

The scheme is to help retrenched workers cover their expenses while looking for new jobs, thus reducing their burden of lost income. Counseling services would also be provided to increase the chances of the retrenched workers landing suitable jobs.

He said the retraining provided under the scheme could raise the skills of workers and assist the employers in hiring workers with the appropriate skills.

“WIS gives employers the space to adjust their organisation to suit the change in technology and business structure and reduce pressure due to bankruptcy or downsizing of operation.”

Najib said the risk of conflict due to retrenchment can be reduced because WIS will provide security to the workers.

“The implementation of WIS is among the most important feature in creating an active labour market policy in Malaysia,” he said. “The availability of a proactive social security programme to assist the workers and employers to face world economic challenges is no longer an option, but a necessity,” he added.

– BERNAMA