KUALA LUMPUR: The Covid-19 pandemic appears to have reared its ugly head on yet another hospitality player.
Hotel Equatorial Kuala Lumpur has announced a voluntary separation scheme (VSS) to employees who are keen to apply.
In an undated letter, the property's general manager Robert Lagerwey said the scheme allowed for compensation over and above the minimum guidelines mandated.
"We have tried our very best to mitigate the impact of Covid-19 on our business and we sincerely appreciate all your understanding and support during this time," he said.
The 400-plus roomed hotel which is located in the Kuala Lumpur city centre, had reopened its doors last year after a RM1 billion redevelopment exercise.
Hotel Equatorial is a Malaysian hospitality chain with properties in Malaysia, China and Vietnam.
Established in 1971, it started with the Hotel Equatorial Kuala Lumpur and expanded to manage seven properties in Asia.
Today, the group's website stated that it has consolidated its operations to focus on its flagship properties in Kuala Lumpur, Penang, Melaka and Ho Chi Minh City
Employees at the Kuala Lumpur property were notified by Lagerwey that they may apply for the VSS which will be closed on May 15.
"A due selection process will follow and applicants will be notified in writing if the Hotel can accept the application," he added.
Employees who have less than one year's service as of May 1 this year will be entitled to the following:
• one-month salary as a statutory benefit
• 10-days salary or parts thereof as a statutory benefit
• seven days salary as an ex-gratia payment
• for those who were paid a half-month bonus in January, they will receive the balance 50 per cent bonus as part of this package
Meanwhile, for employees who have more than one year service as of May 1 this year, these are the following terms of separation if their applications are approved:
• one month-salary as a statutory benefit
• 10 days salary or parts thereof as a statutory benefit
• 14-days salary as an ex-gratia payment
• For those who were paid a half-month bonus in January, they will receive the other 50 per cent bonus as part of the package.
Lagerwey did not indicate in his letter what plans the hotel had for employees who chose to remain with the company.