Defaulting employers fined more than RM200,000

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A total of RM232,100 in fines had been imposed by the courts against 144 errant employers between July and September 2014, the Employees Provident Fund (EPF) said today in its third quarter 2014 (Q3 2014) report.

The employers, who defaulted in remitting their employees’ monthly EPF contributions within the stipulated time, were fined under Section 43 (2) of the EPF Act 1991. Under the Act, all employers are required to remit their statutory monthly contributions on behalf of their employees on or before every 15th of the following month.

In a statement today, EPF Deputy Chief Executive Officer for Operations Dato’ Mohd Naim Daruwish said, “It is mandatory for all employers to contribute on behalf of their employees and this matter should not be taken lightly. We reiterate that the EPF savings is for the employees’ retirement well-being and employers have both the legal and moral obligations not to default in paying their EPF contributions.”

Among the errant employers were Global Globe (M) Sdn Bhd of Kuala Lumpur, who was fined RM6,000, Sunrise Training and Retraining Centre Sdn Bhd of Selangor (RM5,000), two Penang-based companies – Umibina (M) Sdn Bhd (RM5,000) and Syarikat Hussain Chik Sdn Bhd (RM5,000), Pan Bay Engineering Sdn Bhd of Selangor (RM4,000) and SSM Associates Sdn Bhd of Kuala Lumpur (RM4,000).

Upon conviction and application by the employers, the court may grant the employers to settle the arrears of contribution by way of instalments of up to six months. The EPF will then credit all outstanding contributions into the respective members’ accounts after the arrears have been remitted in full.

From July to September 2014, the EPF had submitted 304 names of company directors to the Immigration Department to restrict them from leaving the country until they fully settle the arrears of contribution, as provided for under Section 39 of the EPF Act 1991.

Dato’ Mohd Naim added that the company directors had been duly notified on their overdue contributions and were given 14 days to respond before the EPF submit their names to the Immigration Department to restrict them from leaving the country.

During the same quarter, a total of 227 civil suits and 645 criminal cases were filed against company directors and employers who had defaulted on their EPF contributions.

“We continue to be firm and take stern action against errant employers as EPF savings is the main source of income for their employees’ retirement,” said Dato’ Mohd Naim, adding that the EPF had introduced the e-Caruman facility for employers to submit their EPF contributions conveniently.

Dato’ Mohd Naim said the e-Caruman facility was cost-effective as it helped employers to save time in submitting their monthly EPF contributions as well as reduce errors when completing the contribution details

The EPF has a stringent monitoring system to ensure that employers pay their EPF contributions on time, but members are also urged to check their EPF accounts on a regular basis via i-Akaun.

Reports on errant employers can be made personally at EPF branches or by contacting the EPF Call Centre at 03-8922 6000 from 8.00am to 6.00pm from Monday to Friday. Alternatively, members can post their queries online via myEPF at http://enquiry.kwsp.gov.my.