LETTERS: There is a growing number of employers failing to contribute to the Employees' Provident Fund (EPF).
Recently, a user of X (formerly known as Twitter), Maryam, shared her experience of receiving a letter of demand from her employer, allegedly to deter her from filing a complaint about the employer's failure to contribute to the EPF.
A report early last year said 13,764 employers failed to pay EPF contributions for three months.
According to the EPF Act 1991 and the EPF Regulations 1991, employers are obligated to make EPF contributions based on the prevailing rates.
This is a fundamental responsibility of employers to employees. However, non-compliance is on the rise, prompting employees to act.
Employers who fail to make contributions not only face prosecution, employees also have the right to recover the amount that should have been contributed.
Various sections in the EPF Act outline penalties for specific violations. Section 41 (1) stipulates that failure to register with the EPF as an employer within seven days of hiring an employee can result in imprisonment for up to three years or a fine not exceeding RM10,000, or both.
Other offences, such as failing to pay contributions on or before the 15th day of the month (Section 43 (2)) or providing false statements (Section 59 (1)) carry their own penalties.
Further details about penalties for employer non-compliance with EPF contributions are outlined in Section 39, granting the EPF the authority to take action against directors of companies who fail to remit contributions, including travel bans.
More importantly, employees have the right to lodge complaints when employers fail to contribute to the EPF, as well as when contributions are insufficient or not to schedule.
SHAHRIZAL MIZANI
Universiti Sains Islam Malaysia
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times