Employers Skeptical of Penjana's Incentive Programme

Businesses that are struggling to survive may not be in a position to take up the latest government scheme to subsidise allowances for fresh graduates hired to undergo apprenticeship as these would be considered as full-time workers from the start.

The Malaysian Employers Federation (MEF) said businesses will not be able to continue hiring interns as full-time staff once their apprenticeship is over because their own survival is at stake.

“When the internship period is over, the employee may say he or she is wrongfully terminated and may take up a case against us as they are considered as full-time staff. Companies do not want to face this,” MEF executive director Shamsuddin Bardan said. 

Under the National Economic Recovery Plan (Penjana) announced by Prime Minister Muhyiddin Yassin last month, the government will pay from RM600 to RM1,000 per month for each employee or apprentice hired by companies for up to six months.

The move is seen as the government's response to forecasts of a bad job market after the impact of the recent pandemic, which saw businesses forced to shut down under the movement control order.

According to official figures, almost 800,000 people had lost their jobs as of April.

Shamsuddin said companies who take up the Penjana incentive would still need to contribute to the Employees Provident Fund (EPF) and Social Security Organisation (Socso). He added that companies would usually offer jobs to fresh graduates if they were determined to be qualified at the end of their apprenticeship.

“But if the company feels the person is not up to the mark, the employers should be able to release them with the skills learned, as it would be easier for them to find a job,” he said.

Shamsuddin said the conditions imposed on businesses taking up the incentive programme were unfair and advised the government to promptly review the scheme which began on July 1.

“If they are to be considered as full-fledged staff, then companies may not want to take part in the programme to train interns as they are not sure if their business will survive,” he said. He said businesses could still play a part in retraining graduates without having to hire them.

Source: Free Malaysia Today

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