A factory in Sungai Petani alleged to have retrenched 99 of its workers without proper notice will face the music after the local labour office decided to take legal action against the company.
The Star reported that, the unnamed factory, which manufactures electronic components for retail and business market, notified the Sungai Petani labour office on 30 December of their intention to retrench a batch of its workers on 9 February.
Instead, the layoff was made on 9 February, a month earlier than notified. The fact that the company settled the retrenchment benefits to its workers totaling more than half a million ringgit has not made the labour office satisfied.
The 99 workers are made up of engineers, technicians and support staff.
In the next coming one or two months, the factory is also expected to terminate more than 200 production operators, all of whom are local workers.
The employment act stipulated that any company which intends to exercise mass layoff or retrenchment must inform the workers affected and the local authority 30 days in advance. The company also must present its compensation plan to the workers affected with the retrenchment to the authority.