employment law (hrm 657)

8/7/2019 EMPLOYMENT LAW (HRM 657)

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EMPLOYMENT LAW (HRM 657)/5C

JULY-NOV 2010

GROUP ASSIGNMENT

[GROUP 1]

TOPIC 1: SOCIAL SECURITY PROTECTION

UNDER THE EMPLOYEES PROVIDENT

FUNDACT 1991


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The purpose of the law

The main objective is to provide financial reliefor social security protection for workersthrough compulsory savings.

To provide financial security for its membersretirement purposes.

To preserving and growing the saving of its

members in a prudent manner. With the best practices ininvestment and

corporate conduct.


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The employees under the scope of the

law Section 70 and the Third Schedule to the Act

further reinforced this by providing that some

of the provisions in the Act apply only to

Malaysian citizens.

employees upon attaining 55 years of age (50

years in the case of female workers) or in the

event of total incapacity.


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Employers legal obligations under the law

Employer's Registration Certificate

Contributions Remittance

Statement

Notify any change Of

Name/Employer Status

Cessation Of Liability and

Subsequent Re-employment of

Employees

Contact The EPF Regarding Any

Problems On Contributions

Immediate Response To Any

Enquiry Form The EPF

Termination Of Employee and Not

Liable To Contribute Temporarily

Notify any change Of Address

Payment of EPF Contributions

Wage Book/Register Statement of Wages

Registration Of Employees As EPFMembers


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Employer's Registration Certificate

required to exhibit the certificate at all times

at the employer's premise so that it can be

seen by all employees.


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Registration Of Employees As EPF Members

An employer must register all of his/her employees, who have not been

registered with the EPF, within 7 days from the date of employment

by completing Form EPF 3 before the first contribution is made.

The employee is required to give his/her personal details and forward his Identity

Card/Passport to the employer. The employer is responsible to complete the Form

EPF 3 and forward it to EPF.

If the employee is already registered with EPF, the EPF membership number

must be obtained from the Member or from any EPF office.

The EPF membership number allocated to each employee should be used when

remitting the employee's EPF contributions or in any other dealings with the EPF,

where relevant.


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Wage Book/Register An employer is required to keep the wage book/register and EPF records which

contain details of the employees as listed below for a minimum of six years fromthe date the last information was recorded.

Details that should be in the Wage Book/Register are as follows:

a. Full name of employees

b. EPF membership number

c. Sex

d. Date of birth

e. Number and colour of the identity card (for employees who are foreigners, it

is suggested that the passport number and the citizenship be stated)

f. Permanent residential address

g. Occupation

h. Date of employment

i. Period of payment of wages (e.g: daily/weekly/monthly)

j. Wages for the said period

k. Other payments made for the said period

l. The amount deducted for EPF contributions

m. The amount paid by the employer for EPF contributions

* The Wage Book/Register should be produced to the EPF Inspector when requested for

inspection.


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Statement of Wages

An employer is required to issue a statement of wages to every employee. This

statement must contain the employee's particulars as follows:

a. Full name of the employee

b. EPF membership number

c. Sexd. Identity Card number and colour (for foreigners, it is suggested that the

passport and citizenship numbers be stated)

e. Period of payment of wages (e.g:daily/weekly/monthly)

f. Total wages for the said period

g. Other payments made for the said period

h. Amount deducted for EPF contributionsi. Employer's reference number

j. Amount paid as the employer's share of contributions: and

k. Full name of the employer/employer's representative, signature and

date of statement issued


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Payment of EPF Contributions

An employer should deduct only the employee's share of the EPF contributionfrom the employee's wages. The employer is also required to contribute his/her

share of the contributions together with the employee's portion to EPF according

to the Third Schedule of the EPF Act 1991.

An employer should complete the monthly contribution schedule (Form EPF 6

(Form A) with the correct and full details of the employees. The name of theemployee must be the same as in the Identity Card and Membership Certificate (if

any).

The employer is required to pay contributions on any wages of a month on or

before the 15 of the following month. The total payment must tally with the total

contributions recorded in the Form EPF 6 (Form A).

The employer is required to check the validity of all receipts received from EPF

and notify EPF if there are any errors. The receipts should be kept for six years

for inspection by EPF officers.


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REMINDER:

Any employer who fails to contribute for his/her workers can be convicted under

the following sections:

Section 43 (2)

Offence : Any employer who fails to contribute to the EPF Board on behalf of any

employee in respect of any month within 15 days of the contribution month due

has committed an offence and if convicted can be jailed up to three years or finedup to RM10,000 or both.

Section 48 (3)

Offence : Any employer who deducts an employee's contributions from the

employee's wages and then fails to remit the said deductions or any part thereof

to the EPF has committed an offence and if convicted can be jailed up to six yearsand fined up to RM20,000 or both.


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Contributions Remittance

Statement The EPF will issue the Contributions Remittance Statement to employers

after

processing Form EPF 6 (Form A) every month. The employer must ensure

that

the particulars of contributions printed on the Statement are correct.

If there are any mistakes in the particulars printed in the statement, the

employer

must inform the EPF in writing within a month from the date of receipt of

the

statement. If no complaints are received within this period, the EPF willassume

that the contributions are correctly credited into the members' accounts.


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Notify any change Of Address

Employers must notify the EPF in writing of anychange of address not later than

14 days from the date of change.

Notify any change Of Name/Employer Status

An employer, who has changed its name or status

such as change from sole

proprietor to company must notify the EPF not later

than 21 days from the date of

change of status by completing a new Form EPF 1.


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Termination Of Employee and Not Liable To Contribute Temporarily

An employer, who has no employee for a temporary period, must return

the Form

EPF 6 (Form A) to the EPF with the word 'Nil' written in the column forcontribution

every month until the employer engages an employee.

Cessation Of Liability and Subsequent Re-employment of Employees

An employer who has no employees or does not intend to recruit any

employee

in the future must notify the EPF Board through Form EPF 6 (Form B)

within the

period of 30 days from the date the employer ceases to contribute.

However, if an employee is subsequently employed, the employer must

be

registered with the EPF by completing another Form EPF 1. The EPF Board

will issue a new employer's reference number and send all the relevant

documents to the employer.


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Immediate Response To Any Enquiry Form The EPF

any enquiry from the EPF whether throughtelephone, correspondence, visit by

an EPF inspector or through e-mail should be given

immediate response.

Contact The EPF Regarding Any Problems On

Contributions

Any enquiry in relation to problems on contributions

should be referred to the nearest EPF office

or Enquiry


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Benefits

Retirement Incapacitation

Dividend Death

Tax

Incentives


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Retirement

Contributions of :

> Employer - 12%

> Employee - 11%

Consists of 2 accounts which is:> Account 1 60%

> Account 2 40%


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Dividend

The contributions kept in the EPF will

accumulate with dividend every year.

Death Withdrawal

RM2,500 is paid to the next-of-kin upon a

members death.

Incapacitation withdrawal

RM5,000 is paid to a member upon

Incapacitation.


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employment law (hrm 657)

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