Hilton Kuala Lumpur is the latest hotel to implement pay cuts and lay off staff in order to survive the economic fallout caused by the Covid-19 pandemic.
It is taking steps to remain afloat by offering its personnel options for the retention programme and retrenchment.
“As we navigate the unprecedented challenges brought upon by Covid-19, we would like to thank you for your continuous support and understanding during this difficult time.
“We are forced to make difficult decisions to ensure the continuity of the business and in order for the hotel to continue to operate,” the hotel said in a letter dated Wednesday (April 29) to its staff members.
According to the letter, a group of team members will be placed on the employee retention programme where it will provide financial aid of RM600 on a monthly basis for a period of one to six months.
“In the event the application is unsuccessful, team members will be placed on unpaid leave,” the letter read.
The letter also noted that a number of team members will “regrettably be retrenched based on the ‘Last In-First Out’ (LIFO) process”.
“All final dues calculations will be provided to you individually by registered post together with a reference letter,” it said.
Staff members have also been urged to apply claims from the Employee Insurance System (EIS) through the Social Security Organisation (Socso).
“All remaining team members who do not fall under the above categories will remain as per the latest signed agreement (a 20% or 50% salary deduction),” it added.
“Please be advised that the hotel reserves the right to review, change or modify all salaries, benefits, terms and conditions of employment, based on prevailing market conditions,” it said.
The Malaysian Association of Hotels’ recent survey has revealed that up to 15 percent of hotels in the country may be facing shut down due to the pandemic.