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KUALA LUMPUR, 2 November 2011 - Hong Leong Bank today announced that it has offered employees a Voluntary Separation Scheme (VSS) as part of its consolidation exercise towards growing its newly enlarged entity. The scheme, which is open to all permanent employees of Hong Leong Bank and MIMB, is offered strictly on a voluntary basis.
Hong Leong Bank Managing Director, Yvonne Chia said the exercise is to consolidate its position as a fully integrated financial group as the banking industry landscape has evolved and the level of competition is becoming more challenging and intense.
She said this scheme has therefore been introduced as part of Hong Leong Bank efforts to continue to enhance productivity and efficiency within the Bank and also to honour the wishes of employees who have expressed their desire to further studies, change of work environment, start-up business, early retirement and pursue personal interest, which is mutual for the Bank and the employees.
The scheme offers a financial package computed based on factors including the length of service or months to retirement, basic salary and staff categories. The VSS payment formula is based on a VSS multiplicand that ranges from 1.4 (for executives) to 1.6 (for non-executives) multiplied by the length of service (capped at a maximum of 22 years) multiplied by the basic salary or 50% of total monthly salary until retirement, whichever is lower.
In addition, the Bank is also offering medical relief of up to RM1,000 reimbursable for a period of 6-months from the date of separation, continuation of housing andmotor vehicle loans at staff preferential rates for a period of 12 months from the date of separation.
Final approval of VSS applications at Hong Leong Bank will strictly be based on business and operational requirements.
The VSS exercise will be administered by the Bank's Group Human Resources Division ("GHRD"). The division will also assist to coordinate outplacement and alternative career opportunities for successful VSS applicants. Applications for VSS must reach the Bank's GHRD by 5:00p.m on 21 November 2011 and applicants will be notified by 28 November 2011.
Relevant authorities, including the employee unions have been informed on this exercise.
-END-Press Release - 02/11/2011