KUALA LUMPUR: Malaysian workers are losing out on millions of ringgit annually because monetary awards by the labour and industrial courts are ‘worthless’ as they cannot be enforced due to a loopholes in the Company’s Act 1965.
“Most of the time, the awards are mere paper judgements, especially when companies undergo a change of name, become dormant or just fold up,” according to MTUC vice-president A. Balasubramaniam.
“Under such circumstances, the awards cannot be enforced, hence workers are deprived of their dues and nothing can be done,” he said.
In cases where companies were wound up, secured creditors were given the first priority while the workers’ claims were accorded the lowest priority, he said.
Balasubramaniam said MTUC would soon meet the Companies Commission of Malaysia to seek redress for these unfortunate workers.
The congress wanted the commission, which was the sole regulatory body for the registering and overseeing of company operations, to formulate laws which gave priority to protecting workers’ interests and ensuring that court awards were duly enforced by plugging all loopholes, he said. — Bernama