Hit by Covid-19, Mustafa Centre to send home foreign workers with expired work passes, stop ‘allowance’ for some staff

Hit by Covid-19, Mustafa Centre to send home foreign workers with expired work passes, stop ‘allowance’ for some staff
By TESSA OH

TODAY file photo
Mustafa’s business has been badly affected by the Covid-19 pandemic and the company does not expect its business to “return to the pre-Covid days as our international borders are all closed”, it said in a letter to employees.
Published30 AUGUST, 2020UPDATED 30 AUGUST, 2020
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SINGAPORE — Mustafa Centre will send its foreign workers whose work passes have expired home as the Covid-19 pandemic has gravely affected its business.

These workers will receive one month’s salary, and the company will also pay for their flight ticket home, managing director and founder Mustaq Ahmad said on Thursday (Aug 27) in a letter to all Mustafa employees and the group’s related companies.

Mr Mustaq also said in the letter that Mustafa will stop paying its employees who have not been called to work a “sustenance allowance” of S$300 from Oct 1.

This allowance has been paid out to employees since June this year.

“We urge all employees who have not been called upon to work to take on a second employment to earn an income,” he added.

TODAY has contacted Mustafa to ask how many local and foreign staff will be affected by these measures.

Read also: City Square Mall, Mustafa Centre, Funan Mall among places visited by Covid-19 cases while infectious

Mr Mustaq said Mustafa’s business has been badly affected by the Covid-19 pandemic and the company does not expect its business to “return to the pre-Covid days as our international borders are all closed”.

“Our operating hours have been reduced and strict safe distancing measures have been imposed,” he said. “We are not able to recall all our employees to work due to these reasons.”

During this period, Mustafa has taken “serious efforts” to reduce its spending so as to tide through the coronavirus outbreak, said Mr Mustaq.

Read also: Spize restaurant in Bedok, Jollibee in Lucky Plaza among places visited by Covid-19 cases while infectious

However, these efforts have not been sufficient and that is why the company has to discontinue distributing the sustenance allowance to reduce its payroll costs, he said.

Mr Mustaq said Mustafa is working with the Singapore Manual and Mercantile Workers Union, the Employment and Employability Institute and the National Trades Union Congress’ Job Security Council on the job vacancies available for employees who may be interested.

For workers who have found jobs, Mustafa will accept resignation letters without a notice period and provide one month’s salary as a token of appreciation for their contribution to the company.

Read also: Lot One McDonald’s, Lorong Lew Lian coffee shop among places visited by Covid-19 cases while infectious

Mustafa said workers who are seeking new job opportunities have asked the firm to waive the notice period.

“We regret having to resort to these decisions but hope that business will come back to normal as soon as possible,” said Mr Mustaq.

Topics
MustafaCovid-19coronavirusretrenchmentJobs
Read more at https://www.todayonline.com/singapore/mustafa-centre-send-foreign-workers-expired-work-passes-home-discontinue-allowance-some

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