Socso grants grace period to bosses

Courtesy call: Star Media Group chief operating officer Roy Tan (right) with a Socso delegation led by Mohammed Azman (in white) during its visit to Menara Star, Petaling Jaya.

PETALING JAYA: Employers who have yet to register their companies and employees with the Social Security Organisation (Socso) have been given a one-month grace period – from March 1 to 31 – before the operation, codenamed Ops Kesan 2019, starts in April.

Any employer who voluntarily registers during this period will be exempt from being issued a compound and prosecution even though the deadline they should register has passed, said Socso chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed.

They will be given an exemption of the Interest Late Payment Contributions (ILPC).

“Out of the 8,487 visits during Ops Kesan 2018, about 10-14% of employers were not registered. Most of them are small and medium enterprises.

“In fact, when they start hiring workers, they are given up to 30 days to register to protect their employees and failure to do so would be an offence. Action could be taken against them,” he told reporters at a press conference yesterday.

Mohammed Azman said as of Dec 31 last year, there were 613,860 registered employers, with 7.17 million workers receiving Socso protection.

Since Ops Kesan started from 2009 to Dec 31 last year, 19,253 compounds worth more than RM14.14mil have been issued to employers who failed to register their companies and employees.

Under the Employees’ Social Security Act 1969 and the Employment Insurance System Act 2017, employers may be subject to compound action of up to RM5,000 if they do not register the company and its employees with Socso.

Dr Mohammed Azman said the 11th Ops Kesan 2019 would be extended to foreign workers working legally in the country after the Human Resources Ministry made it mandatory for employers to make contributions for them from Jan 1.

Ops Kesan 2019, which begins on April 1, will involve about 500 enforcement staff and will be kicked off nationwide until the end of the year to clamp down on unregistered employers.

Malaysian Employers Federation director Datuk Shamsuddin Bardan applauded the move by Socso to give a one-month grace period for employers who have yet to register their employees.

“Employers should have registered with Socso by now. Maybe there are some small companies with one or two workers that have yet to register.

“There are still some companies that are not aware of the need to register foreign workers. Also, there are companies that are unsure whether to register their contract workers,” he said.