Entitlements withheld under VSS? Socso says employees have channels for redress

SHAH ALAM – Employees whose entitlements are denied or withheld by their employers are advised to seek guidance from the Labour Department (JTK) or the Industrial Relations Department (JPP) before taking any further action.

Social Security Organisation (Socso) Employment Insurance System Office head Datuk Asri Ab Rahman said this step was crucial to ensure employees receive accurate advice, proper mediation and protection of their rights, particularly in cases involving voluntary separation schemes (VSS) or termination of employment.

“If an employer denies or withholds such entitlements, employees may seek guidance and advice from JTK or JPP prior to pursuing any further appropriate action,” he told Sinar Daily.

He added that Socso also encouraged affected employees to engage directly with the two departments, especially in cases involving alleged oppression, retaliatory action or social injustice following employment termination.

Asri said employees remained protected under the Employment Insurance System Act 2017 (Act 800) in the event of termination, including termination arising from a VSS, provided eligibility criteria were met.

“Socso clarifies that employees are protected and their welfare is safeguarded under Act 800 in the event of termination of employment, including termination under a VSS, subject to the fulfilment of eligibility criteria,” he said.

He explained that Socso acts as the statutory body responsible for providing social security protection to employees, including in situations involving loss of employment.

On labour rights beyond the Act, Asri said the Human Resources Ministry plays a central role through the enforcement of existing labour legislation.

“With regard to employees’ rights under other labour laws, Socso is of the view that ministry, through the enforcement of the Employment Act 1955 and the Industrial Relations Act 1967, plays a key role in mediation and dispute resolution to ensure that employees’ rights and welfare are protected and that industrial harmony is maintained,” he said.

He also clarified that, in principle, a VSS is a voluntary offer by the employer and must be accompanied by compensation agreed upon by both parties.

He said if a VSS offer is not accepted, termination of employment should not ordinarily take place.

“Termination should only occur in cases arising from misconduct or other lawful grounds recognised under the law,” he added.

He advised employees to carefully review the terms and conditions of any VSS or separation agreement before accepting it, particularly provisions related to payments, clauses or contractual implications.

Despite any disputes over VSS compensation, he said Socso will continue to process and pay eligible benefits under Act 800, provided loss of employment has occurred and the employee meets the prescribed requirements.

He stressed that Socso’s role was to provide a safety net for employees in accordance with existing legislation.

“Socso does not make decisions that are inconsistent with the law or beyond its statutory mandate, unless employee misconduct has been established and directly affects benefit eligibility, with the objective of safeguarding employee welfare and preserving industrial harmony,” he said.