KUALA LUMPUR: Parkroyal Kuala Lumpur is offering a voluntary separation scheme (VSS) to all its employees as the luxury hotel will be closed for 15 months for renovation.
The hotel has decided to start the renovation in mid-June, instead of its initial plan to do it late this year, in view of the Covid-19 pandemic, according to an internal memo sighted by theddgemarkets.com.
“Parkroyal Kuala Lumpur’s operations and financial performance have been severely impacted. The hotel has forecasted a significant financial loss for 2020 even after taking into account the various cost reduction measures,” read the memo dated today.
“With the total closure of the hotel, all employees will be offered VSS as a gesture of goodwill from the company.
“We strongly encourage you to take up this VSS, which is significantly better for most unionised employees compared with retrenchment as stipulated in the collective agreement or notice period as stated in the employment letter for management staff,” it added.
Parkroyal Kuala Lumpur is part of the Pan Pacific Hotels Group, which is a wholly-owned hotel subsidiary of Singapore-listed UOL Group Ltd, whose property and hotel portfolios spread across Asia, according to its website.
In Malaysia, the group is best identified by two of its long-established, five-star hotel assets, namely the 46-year-old Parkroyal Kuala Lumpur in Bukit Bintang and the 30-year-old Parkroyal Penang Resort in Batu Feringghi.
In the circular to its employees, the company said the Covid-19 crisis has drastically affected the global economy, including Malaysia, which has forced the government to enforce movement curbs since March 18 to contain the spread of the virus.
It said more details on the VSS will be shared during its townhall sessions scheduled for May 18, after which, the VSS application will be closed on May 21.
Unionised employees who have not opted for the VSS by then will be retrenched based on the Employment Act as stipulated in the collective agreement.
The company said it has fixed June 8 as the last day of employment for all staff, where the final payment of the VSS will be credited into the employees’ bank accounts.
“On behalf of the company, I would like to thank all of you for your hard work and contributions to Parkroyal Kuala Lumpur. I wish you good health. For our Muslim colleagues, Selamat Hari Raya,” it added.