EPF: Errant employers fined

2009/11/12

KUALA LUMPUR: In its effort to protect members’ savings, the Employees Provident Fund (EPF) has continued to take action against employers for defaulting on their employees’ EPF contributions with a total of 193 employers slapped with fines by the courts totalling RM278,970 during the third quarter of 2009 (Q3).

The fines were for offences under Section 43(2) of the EPF Act 1991, which compels all employers to remit their monthly contributions before or on the 15th day of every month or face legal actions.

Maxsoft Precision Sdn Bhd of Johore was slapped with the highest fine totalling RM7,000.

Meanwhile, Senzpak (M) Sdn Bhd of Johore, Jurutera Budiman (M&E) Sdn Bhd of Selangor, Rohana Bursery & Trading Sdn Bhd of Terengganu and The Regend Inn of Sarawak were fined RM5,000 each.

“The rate of defaulting employers during this quarter has registered a drop in which only 1.75 per cent employers had defaulted compared to 1.91 per cent in the previous quarter. While this suggests that increasingly more employers are aware of their role in their employees’ retirement wellbeing, the EPF will still persevere with its efforts to ensure that employers continue to comply with the law,” said Nik Affendi Jaafar, EPF General Manager for Public Relations.

During Q3, 131 civil cases and 1,913 criminal cases were filed by the EPF against errant employers for defaulting on their employees’ EPF contributions. The names of 234 company directors have also been submitted to the Immigration Department to prevent them from leaving the country without first settling their arrears as provided under Section 39 of the EPF Act 1991.

The courts will usually give errant employers up to a maximum of six installments to settle their contribution arrears during which time the EPF will closely monitor them to ensure that arrears in contributions are settled in full. Once the full amount has been received, the EPF will credit all outstanding contributions to the respective members’ accounts.

“Looking after members’ interest is of utmost importance to the EPF and we will use every means available to us to ensure that members’ retirement savings continue to be protected.

“Nevertheless, members must also play an active role by making a deliberate effort to check their statements to ensure that their employers pay accurately and in a timely manner. Members should seek clarification from their employer or report to the EPF immediately if they discover anything amiss,” concluded Nik Affendi. - Bernama