Employer failed to make contributions for three years totalling RM720,000


  • Nation
  • Tuesday, 01 Feb 2011

GEORGE TOWN: The security firm which failed to submit the mandatory Employees Provident Fund (EPF) contributions for 200 of its staff over the past three years has agreed to pay the amount, which totals about RM720,000.

EPF public relations manager Nik Affendi Jaafar said they had initiated legal action against the employer.

“The employer has agreed to pay in instalments.

“For the default payments from May 2009 to March last year, eight out of the 12 monthly instalments have already been paid.

“The remaining instalments will be paid by April this year.

“We will credit the funds into the employees’ respective accounts once everything has been paid in full by April,” he said.

He added that the company had also requested to pay in instalments for a second period of default payment.

“EPF will continue to monitor the present contributions. Any default payment will be dealt with by the enforcement and legal provisions under the EPF Act,” he warned.

On Sunday, one of the security guards Ahmad Ibrahim, 42, had claimed that although there were deductions from their salaries every month, these were not deposited into their EPF accounts.

He alleged that this practice had been going on for three years since the end of 2007.

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