15 April 2020 COVID-19: Employment Issues to Consider Malaysia, Singapore, and Indonesia
AGENDA COVID-19 and Employment-Related Considerations Emergency measures Governmental How do employers taken in Malaysia , assistance to help and businesses deal Singapore and employers and with the economic Indonesia to combat businesses impact of measures COVID-19 taken? www.zicolaw.com | 2
MALAYSIA Yong Hon Cheong Partner Zaid Ibrahim & Co. (a member of ZICO Law) hon.cheong.yong@zicolaw.com +603 20879963
Governmental response to COVID-19 | Malaysia EMERGENCY MEASURES GOVERNMENTAL ASSISTANCE What governmental assistance has been extended What measures have been taken to to help struggling employers and businesses to combat COVID-19? ensure business continuity and protect jobs? • Movement Control Order (from 18 March, • Wage subsidy for 3 months for employees extended to 28 April 2020) earning RM4,000 or less per month: • Restriction of travel inbound and outbound and (i) For companies with 75 employees also within the country and below – RM1,200 per month per employee • Closure of non-essential business premises, schools and higher educational institutions (ii) For companies with 76 to 200 employees – RM800 per month per • Prohibition on mass gatherings inclusive of employee religious gatherings (iii) For companies with more than 200 • Restriction on hours for food vendors and employees, RM600 per month per deliveries employee up to a maximum of 200 • Enhanced Movement Control Order (certain • Condition is that employees must be retained areas) for 6 months under this arrangement • Prohibition on occupants leaving their • Employee retention program – RM600 per residences and entry by non-residents into month (for 3 months) for employees placed on affected areas. www.zicolaw.com | 4 no pay leave
SINGAPORE Heng Jun Meng Director ZICO Insights Law LLC jun.meng.heng@zicolaw.com +65 6908 1294
Governmental response to COVID-19 | Singapore EMERGENCY MEASURES GOVERNMENTAL ASSISTANCE What governmental assistance has been extended What measures have been taken to to help struggling employers and businesses to combat COVID-19? ensure business continuity and protect jobs? • Circuit breaker, enhanced safe-distancing • Temporary relief from certain contractual measures (7 April – 4 May 2020) obligations. Examples: • Closure of workplaces, schools, entertainment • Commercial + industrial property leases venues ≠ essential services • Event & tourism-related contracts • Compulsory use of masks in supermarkets, • Certain secured loan facilities malls etc. • Wage subsidy for 25% of first SGD 4,600 for • Active enforcement – fines for first time local employees – 9 months offenders, revocation of work passes • No entry or transit for short term visitors • Increased risk share of loans from 80% to 90% • Enhanced stay-home notice for arrivals • For April: Wage subsidy for Waiver of monthly 75% of first SGD foreign worker levy 4,600 for all local employees www.zicolaw.com | 6
INDONESIA Agnesya Munita Narang Partner Roosdiono & Partners (a member of ZICO Law) agnesya.narang@zicolaw.com +6221 2978 3888
Governmental response to COVID-19 | Indonesia EMERGENCY MEASURES GOVERNMENTAL ASSISTANCE What governmental assistance has been extended What measures have been taken to to help struggling employers and businesses to combat COVID-19? ensure business continuity and protect jobs? • Declaration of National Disaster on 13 April • Ministry of Manpower issued circular 2020 encouraging every company, in the interests of business survival during the outbreak, to • Countermeasures such as large-scale social negotiate with its employees on adjustment of distancing policy to prevent the spread within a salary and mechanism of payment province or city upon the request of the • Tax holiday for income tax payments for regional government or provincial government employees; tax exemption for deductible • Temporary export ban on antiseptics, masks, income tax related to import of goods or raw masks raw material, and personal protective materials; adjustment for tax installment of equipment to meet domestic demand monthly income tax. Applicable for several • Temporary restriction on foreign nationals business sectors (e.g. non-woven, pulp and entering the country cement industries) • Financial Services Authority issued regulation on debt restructuring for debtors affected by COVID-19, with a maximum limit of Rp10 billion. www.zicolaw.com | 8
Q&A session How do employers deal with the economic impact of governmental measures taken? www.zicolaw.com | 9
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