Academic Session 2021

May Semester

Assignment 1

BBM207/03 Human Resource Management

Instructions:

1. Assignment 1 contains TWO (2) questions, and you are

required to answer BOTH questions.
2. Assignment 1 carries 50% of your final total marks.
3. The assignment should be typed using Times New Roman,
font size 12 and double spaced, approximately 2000 words.
4. A softcopy should be submitted via Online Assignment
System (OAS).
Downsize only as last resort, employers told

PETALING JAYA: Downsizing may be inevitable in hard times but companies

should only take this path as a last resort, says a labour law expert.

Datuk Thavalingam Thavarajah said with the current uncertain situation,

companies must know how to properly manage a retrenchment exercise.

“The legal principles are established on retrenchment and redundancy. It’s

important to engage not only with the stakeholders, who are the workers and
unions, but also relevant authorities like the Labour Department and Socso, ” he
said.

He was commenting on the Human Resources Ministry’s latest guidelines that

allow employers affected by the Covid-19 pandemic to retrench workers,
provided they acted fairly and in accordance with regulations related to
retrenchment.

The Star reported yesterday that the number of people reporting a loss of jobs
and seeking aid under Socso’s Employment Insurance Scheme (EIS) had risen
substantially in March even before the movement control order (MCO) to contain
the spread of Covid-19 was implemented on March 18.

According to data, the loss of employment (LOE) numbered at 4,917 between

March 1 and 29. The highest recorded was on March 16 with 428 cases.

Thavalingam suggested that companies work on keeping themselves afloat to

provide workers with employment security.

“Companies and breadwinners need to survive and be sustainable in trying times

like this, ” he added.

He said the termination of workers’ employment contracts did not arise at this
juncture because the MCO was not for an indefinite period.

“The laws on salary payments to workers during the MCO are clear. So when the
MCO is lifted, companies should first cut costs to stay afloat.

---/ 2
“This includes measures like freezing new recruitment, cutting unnecessary
expenses through new ventures and cutting down overtime.

“If these fail, companies can engage and get consent from employees when
implementing flexible work hours, temporary layoffs or even mandatory pay cuts
across the board, ” he said.

For companies in dire straits and cannot wait to take further cost-cutting
measures, Thavalingam said this could be a genuine case to downsize the
workforce.

He said companies that have been in the red before the MCO might have no
alternative but to retrench.

“The ministry recognised this in their recent FAQ that the same must be done in
accordance with the established guidelines, such as cost-cutting measures
having first failed, ” he said.

For companies that could still manage during this period, he said it would be
prudent to take cost cutting measures so that when the MCO was over, the
company would be in a better position to assess the situation.

When retrenchment becomes inevitable, Thavalingam said companies must pay

the legal dues to the affected employees, such as salary in lieu of notice and
retrenchment benefits where applicable.

In the final analysis, he called for a “human touch” in retrenchment.

“Employers should try to assist retrenched workers by setting up a help desk to

provide assistance such as employment insurance claims, career opportunities in
other organisations and psychological support, where possible, ” he said.

Thavalingam said the Human Resources Development Fund (HRDF) could also
play a significant role in providing training to re-skill laid off workers.

“What will happen after the MCO? We have to move forward and this is the time
to retrain and re-skill workers, ” he added.

---/ 3
Malaysian Trade Union Congress (MTUC) president Datuk Abdul Halim Mansor
said some employers had forgotten about the government’s previous help after
making profits from their businesses.

“It is only for two weeks that the government has asked them to help the workers,
” he added.

He appealed to companies to prioritise the workforce.

“There should be a formula by the government to ensure companies operate as

usual by providing employment security and work safety according to the law, ”
he said.

Source: The Star, Saturday, 04 Apr 2020

Question 1

Due to Covid 19 pandemic, your boss had asked you to carry out retrenchment
of some employees. As a Human Resource Manager, explain how you will carry
out the retrenchment exercise.
(50 marks)

Question 2

Explain four (4) measures to be taken before a retrenchment to avoid

retrenchment.
(50 marks)

--- End of Assignment 1 Questions ---

---/ 4