Retrenchment Due to Covid-19: For or Against Employers?

• Main Author: Abdul Wahab, Harlida
• Format: Conference or Workshop Item
• Language: English
• Published: 2022
• Subjects: K Law (General)
• Online Access: https://repo.uum.edu.my/id/eprint/30462/1/SOLAS%20VI_2022_110_114.pdf; https://repo.uum.edu.my/id/eprint/30462/

Retrenchment is a recurring phenomenon that relates with the economic activity and performance. During the outbreak of COVID-19, businesses, employers and employees had encountered retrenchment as a result of the implemented Movement Control Order and various lockdowns. Although the law acknowledges the employers' right and prerogative to manage their workforce subject to fair labour practices being implemented, was it legitimate for the employers to reduce the workforce due to COVID- 19? Since the coronavirus disease as an unprecedented crisis had resulted in lay-off, slow down and closure of businesses, can it be the grounds for the retrenchment exercise? What would be the stand of the court in handling cases of retrenchment due to COVID-19? This paper is analysing the retrenchment principle and the courts' approach when exercising judgment in retrenchment cases due to COVID-19. The analysis is based on the secondary sources, in particular, the court cases and their judgments. The finding would then reiterate and shed light on the retrenchment principle thus give direction to the employers, employees, and human resource management to act accordingly even during the unprecedented time.