PSM has urged Putrajaya to proceed with the passage of the Employment Insurance Scheme Bill (EIS), despite its flaws, because a postponement would likely affect thousands of employees.

Central committee member Dr Michael Jeyakumar Devaraj said Putrajaya could have proceeded with the second reading of the Bill and amend it later.

Citing a study by the Malaysian Employers Federation, Jeyakumar said that about 50,000 people are expected to lose their jobs this year alone and would not be able to claim unemployment benefits if the EIS was not implemented.

"What protection will these people have now, if and when they are even able to make ends meet before finding work again?" he asked, during a press conference in Kuala Lumpur today.

Presently, the Employment Act 1955 states that an employee who is laid off would only be entitled to a compensation equivalent to 20 days of salary and only if the person has served the employer for at least five years, said Jeyakumar.

He added that Human Resources Minister Richard Riot had reneged previous commitments to PSM representatives on the passage of the Bill.

"They told us the (EIS) second reading would have been debated the following week. Now, of course, it has been postponed," said Jeyakumar, who is also the Sungai Siput MP.

The EIS is a conditional unemployment benefit scheme which aims to provide decremental compensation to workers for up to six months, funded by employees and employers monthly.

A maximum claim of RM4,000 can be made in the first month of unemployment. The amount that can be claimed will be reduced in subsequent months, up until the six-month limit.

Employees must have contributed to the fund for at least 12 months before qualifying for a claim.

Th Bill was tabled on Aug 1, but Putrajaya pulled it from the Order Paper three days later in order to engage stakeholders.