Staff terminated due to misconduct at work will not be covered by EIS

The Malay Mail Online has reported that chief executive of the Employment Insurance System (EIS) fund Datuk Mohd Sahar Darusman disclosed that staff who are terminated for misconduct at work will not be covered by the EIS.

In the report, Datuk Sahar said that cases relating to professional misconduct remain a relatively grey area, as such cases can be too technical in nature. However, he said that EIS will pay workers who are implicated in such cases, once they are cleared of misconduct charges.

He commented: “For those workers who are terminated for misconduct, for full EIS payment, we are not going to pay, because we have to wait until the department of investigation or the industrial court decides on the matter.

“If the workers are found not guilty, then we will pay, but sometimes these cases may take too long. One year, two years,” he added.

Meanwhile, Datuk Sahar said that the fund will still observe the laws under the EIS sternly. He remarked: “That’s why in many other countries, even for misconduct, they will just pay. The misconduct case will be settled separately.”

“I do not know in Malaysia. We would like the EIS to be implemented very seriously until we learn about the severity of the misconduct, then we just follow the regulations, “ he added, saying that EIS will be conducting talks with the stakeholders and the industrial court to determine under which situation a payout can or cannot be made, for workers fired for misconduct.

Datuk Sahar also highlighted that the EIS fund projects will collect about RM480 million in contributions from employers and employees this year.

To date, he shared that 450,000 employers have already registered for the EIS, while the fund has 6.6 million registered employees in its database.

ALSO READ: Employers and staff expected to contribute RM479.5 million to EIS

The EIS seeks to extend welfare coverage for the country’s 6.5 million private workers by compelling employers to contribute additional payment and bar them from making cuts to wages and fixed perks.

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