MALINDO Airways Sdn Bhd is offering employees voluntary long-term unpaid leave of one year after which their employment status with the company will be made known.

An internal memo dated June 16 sighted by The Malaysian Insight said the scheme that will start on August 1 will allow employees 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 from the Human Resources Department read.

The carrier said applications for the leave scheme were opened from June 16 to 22.

Employees on the leave scheme won’t receive salaries and allowances, as well as not being entitled to medical insurance coverage.

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.

Malindo also indicated the possibility of an extension of the leave, saying it would be up to the management’s discretion.

After the one-year period, permanent staff who have not been recalled to work will be deemed redundant.

“If employees have not been recalled to work, their status will be deemed redundant and the company reserves the right to exercise retrenchment,” Malindo said.

As for contract staff who are not recalled after the end of the leave, will see their contracts expired and will not be renewed.

“Their last working date will be as per the expiry date of their contract,” the memo said.

Employees who have tendered their resignation before the leave period begins will not be eligible for the scheme.

Employees 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.

It was reported earlier this month that Malindo was offering VSS to both permanent and contract staff after it failed to secure loans or guarantees from the government to sustain operations.

Sources close to the issue said the airline with some 5,000 employees is looking to slash its manpower by more than 50%.

The Malaysian Insight has reached out to Malindo CEO captain Mushafiz Mustafa Bakri for comments.

The Malaysian Insight reported on June 12 that staff whose contracts were prematurely terminated during the movement control order have filed a representation with the Industrial Relations Department for unfair dismissal.

It was learnt that the representation, under Section 20 of the Industrial Relations Act 1967, was filed with the department’s Selangor chapter on June 1.

The department, which is under the Human Resources Ministry, summoned the airline for a conciliation meeting on June 30. – June 29, 2020.