KUALA LUMPUR: The High Court today allowed an appeal by a 58-year-old lorry driver, against his former employer and the Employee Provident Fund Board (EPF) over his contributions to the retirement fund.
High Court Judge S. Nantha Balan, in allowing Maniam Subramaniam's appeal to get his backdated payment of RM12,791 from his former employer, Cold Chain Network (M) Sdn Bhd, said he viewed these payments as incentives and not 'trip reimbursements' or allowances.
He also ordered both Cold Chain Network and EPF to pay RM1,500 each in costs to Maniam after setting aside the Sessions Court order in its entirety.
"There were no expenses incurred by the plaintiff to be reimbursed by Cold Chain Network as the toll charges were paid by the Touch N Go card that was given to him by the company. He also does not use his own money to fill petrol for the lorry as he was given a petrol card.
"In reality, there was no reimbursement whatsoever. The label 'trip reimbursement' which appeared in the plaintiff's salary slip is a misleading label."
Nantha Balan also said the use of the multitude of labels is itself is quite troubling and this in itself should have been a 'red flag' for EPF.
'"But EPF seems quite oblivious to Cold Chain Network's indiscriminate use of labels to describe the payment that was made to the plaintiff, over and above the basic salary.
"The ultimate questions is how and on what basis the EPF conclude that the so-called 'trip reimbursement' is travelling allowance.?"
Maniam, who was employed with Cold Chain Network from July 2010 till August 2013, filed a civil suit at the Sessions Court to have RM12,791 declared as wages under the EPF Act 1991, as it would mean the amount will be deducted as EPF contributions.
In his suit, Maniam named Cold Chain Network and the EPF, as the first and second defendants, respectively.
On Dec 9, 2016, the Sessions Court dismissed the civil suit by stating that EPF had investigated the matter and found no reason to disturb the investigations and findings of the the retirement fund.
Maniam, on April 28, this year filed an appeal to the High Court to set aside the decision of the Sessions Court.