Three years to complete study on employment insurance scheme - Riot

The government has completed a study on the proposed employment insurance scheme (EIS) involving 6.5 million workers in the private sector, and engaged the relevant parties on the scheme.

Human Resources Minister Datuk Richard Riot said the government took almost three years to complete the study on the system which could assist workers in the event they were retrenched, including sending ministry officials to South Korea and Japan.

"We had 35 engagements with employment companies and industry players. There is no necessity to have another engagement," he told reporters after presenting Excellent Service Awards (APC) 2016 to the ministry's staff here today.

He said the scheme was expected to be tabled in Parliament in June or July.

Riot said the EIS would be implemented by Jan 1, next year while interest payments would be made from Jan 1, 2019.

The EIS was first introduced in Budget 2015 to assist retrenched workers by giving temporary financial assistance, and providing opportunities for re-skilling and up-skilling.

Recently, Prime Minister Datuk Seri Najib Tun Razak was quoted as saying the EIS implementation would be made through subscription from employees and employers.

He (Najib) said the EIS fund would be managed by the Social Security Organisation (Socso) and it was a social safety net aimed at helping laid-off workers to obtain financial assistance and look for a new job.

On another development, Riot said he was not aware of Indonesia's decision to continue to send domestic helpers overseas, adding he had regarded the report as unofficial as there was no official letter to the Malaysian Government.

He was commenting on media reports quoting a senior manpower ministry official that Jakarta would lift the ban on domestic workers and that it was in talks with countries to ensure Indonesian maids were treated in a humane manner.

On the rescue of 172 local and foreign female workers who were forced to work overtime at a bird's nest factory in Klang recently, Riot said:

"The case is under thorough investigation and if the employer is found guilty of exploiting the workers, he will be punished accordingly."

On Tuesday, it was reported that a man bearing the honorific 'Datuk' title was arrested by a team of home ministry officers for allegedly exploiting local and foreign female workers to work overtime at the factory.

-- BERNAMA