Employees who are forced to accept voluntary separation schemes (VSS) should sue their companies for unfair dismissal, the Dewan Negara heard today.

The Human Resource Ministry said employers can only implement such schemes with the approval of the employees.

"The scheme cannot be forced upon the employees," the ministry said in a written reply to senators distributed in Parliament today.

The reply was to a question posed by Ahmad Ismail to the lower house on whether the ministry was aware that lack of monitoring of the scheme can lead to exploitation by irresponsible employers.

In response, the ministry said the labour department was constantly monitoring companies who have adopted the VSS.

Such employers, the ministry said, are required to inform the Labour Department a month before the scheme is implemented.

Electronics sector affected

Since the 1997 Asian financial crisis, several large companies have been adopting the scheme to lay off their staff and cut their losses.

Although large companies in the electronics sector are the ones mostly hit by the economic downturn, smaller companies are also taking advantage of the scheme to cut down operating costs.

Recently, well-established companies such as Sony Electronic (M) Sdn Bhd in Penang and Perwaja Steel in Gurun, Kedah have implemented the VSS, affecting hundreds of their employees.

Unionists regard the move as a prelude to retrenchment of staff whereas management view it as a plan to restructure their businesses for higher output and profits.