KUALA LUMPUR: A revised Employment Insurance System Bill (EIS) was tabled in Parliament by Human Resources Minister Datuk Seri Richard Riot today to further safeguard employees' welfare.
The revised EIS, to be administered by the Social Security Organisation (Socso), will benefit some 6.5 million workers in the event that they lose their job.
Both employers and their workers will share the monthly contributions to the scheme equally.
Depending on the workers' salary, monthly contributions start from as little as 10 cent for those earning RM30 a month.
The amount is capped at a maximum of RM59.30 for those earning RM4,000 and above.
Under the revised EIS, an insurance scheme will provide employees who are laid off with a portion of the insured salary.
The amount will be paid on a reducing basis for a period of three to six months.
Retrenched workers will also be entitled to allowances for early re-employment, reduced income and job training.
Workers who participated in voluntary or mandatory separation scheme will also be protected.
At the same time, the welfare of workers made redundant by company restructuring or shutting down are also included in the revised EIS.
At the same time, employers will be made to think twice should their workers be subjected constructive dismissal.
Employers will also be penalised if their workers resigned because of threats to the insured or family, including sexual harassment.
The salary of employees will be protected as employers are not allowed to reduce their pay, indirectly or directly, because of contributions to the scheme.
A fine up to RM10,000 or jail term up to two years, or both, will be imposed on employees who make fraudulent claims.
The same penalty will also be meted out to employers if they do not comply with the scheme.