Utusan Melayu (Malaysia) Berhad has been directed to settle outstanding salaries for September and October owed to 815 of its workers by the end of this month.

The Human Resources Ministry in a statement yesterday also ordered the company to settle in full all outstanding voluntary separation scheme (VSS) compensations still owed to 708 of its former staff.

The ministry further urged UHY Advisory Sdn Bhd, the interim liquidator appointed by Utusan, to ensure that all affected workers are compensated according to the Employment Act 1955.

"The newspaper’s company, on the other hand, has been asked to submit the Employment Retrenchment Form and issue a notice of termination or pay the indemnity to its workers," the ministry said.

The decision follows a meeting held between UHY Advisory and the Peninsular Malaysia Labour Department (JTKSM) in Putrajaya on October 11, two days after Utusan's final publication date.

Several days after the meeting, the National Union of Journalists had raised the staff's plight in Parliament, urging authorities to monitor the ongoing liquidation exercise.

After years of financial problems, Utusan Malaysia and its sister publication Kosmo! ended operations on Oct 9.

All employees are on leave until the end of this month, when a scheduled briefing will be held between them and the liquidator.

Utusan's collapse comes less than two months after it raised prices for its printed newspapers in a bid to cover operational costs.

At the time, its former owner Umno injected RM1.6 million to help pay overdue salaries following a staff picket.

The company was later delisted from Bursa Malaysia for failing to settle its loans.