MYAirline workers are insured in case of airline collapse, minister confirms | Insurance Business Asia
MYAirline workers are insured in case of airline collapse, minister confirms
Hundreds could be affected if company folds due to continued financial pressure
Malaysian human resources minister V. Sivakumar confirmed that over 500 employees of low-cost airline MYAirline are set to benefit from the Employment Insurance System (SIP) administered by the Social Security Organisation (Perkeso) should they be terminated.
The affected workers will be eligible for the Job Search Allowance (EMP) as part of the SIP, provided their contribution records meet the stipulated eligibility criteria.
“These workers will receive income replacement for a period of three to six months while finding a new career,” Sivakumar said in a Malay Mail report.
Sivakumar said that the ministry, in collaboration with Perkeso, closely monitors unfolding developments to promptly address all matters pertaining to the welfare of affected workers.
Last week, MYAirline announced the suspension of its operations, citing financial constraints as the underlying reason for the decision.
Transport minister Anthony Loke expressed disappointment over the airline’s abrupt move, considering its potential adverse impact on the country’s reputation, especially concerning international passengers affected by the sudden suspension.
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