KUALA LUMPUR, June 29 — Malindo Airways Sdn Bhd is reportedly offering its employees a voluntary long-term unpaid leave of one year, following which their employment status with the company will be made known.
According to an internal memo sighted by The Malaysian Insight, the scheme scheduled to start on August 1 is said to allow employees of the low-cost carrier to go on “voluntary unpaid leave without any justification”.
“Following the announcement of the voluntary separation scheme (VSS) memo dated May 29, the company is offering a voluntary long-term unpaid scheme to all applicable staff, including staff who have applied for the VSS,” the memo issued by the Human Resources Department read.
The memo also said application for the leave scheme was opened from June 16 to 22.
It added that employees who chose the leave scheme will not receive their salaries and allowances, as well as not being entitled to medical insurance coverage.
Under the scheme, permanent staff will be subjected to a one-year unpaid leave while the leave for those employed on contractual basis will run until the end of their contract.
The carrier also did not discount the possibility of an extension of the leave, stating it would be up to the management’s discretion.
“If employees have not been recalled to work, their status will be deemed redundant and the company reserves the right to exercise retrenchment,” it said, adding that contract staff who are not recalled after the end of the leave will see their contracts expire and not renewed.
It was also understood that employees who have tendered their resignation before the leave period begins will not be eligible for the scheme and those wishing to tender their resignation during the leave period can do so with two weeks’ notice.
However, no salary or allowance will be paid with the resignation, while bonds will be waived.
Earlier this month, Malindo Air resumed flights to almost all its domestic destinations in Malaysia as the government gradually relaxed rules on travel and social restrictions.
Back in February, Malindo Air was one of the first to reveal “cost-cutting initiatives” linked to Covid-19 after citing cash flow constraints.