Legal action awaits Utusan if found to have violated law in staff layoffs
Last update: 10/10/2019
KUALA LUMPUR, Oct 10 -- Utusan Melayu (Malaysia) Bhd will face legal action if it was found to have violated the law in its massive staff layoffs as it ceased operations yesterday, Human Resources Minister M. Kula Segaran said.
“They must follow the law. If they're not following the law, we'll take necessary action,” he told reporters here today.
The company, which was established 80 years ago, ceased its operations due to financial problems, with its employees told to pack up and leave the premises within a short notice.
Utusan executive chairman Datuk Abd Aziz Sheikh Fadzir yesterday issued a memorandum saying the company would cease operations on Oct 9 while the last day of service for workers is Oct 31.
The curtain fell on Utusan after Aurora Mulia Sdn Bhd, a company linked to business tycoon Syed Mokhtar Al-Bukhary, acquired 70 per cent of the company's wholly-owned subsidiary Dilof Sdn Bhd.