PETALING JAYA: Strong enforcement by the Employees Provident Fund (EPF) against errant employers serves as a significant deterrent to others, says the Malaysian Trades Union Congress (MTUC).
Its president Mohd Effendy Abdul Ghani said the crackdown on those who fail to remit EPF contributions for their employees will encourage more employers to fulfil their statutory responsibilities.
“In light of these recent actions, MTUC also advises all EPF members to regularly check their accounts to ensure that their contributions are accurately and promptly deposited.
“MTUC remains committed to supporting the EPF in its mission to protect workers’ rights and looks forward to continued collaboration in upholding labour laws and standards,” he told The Star yesterday.
Mohd Effendy was commenting on the EPF submitting the names of 635 company directors to the Immigration Department between January and June this year to bar them from leaving the country due to their failure to remit employees’ contributions.
Separately, the EPF said action was taken in accordance with Section 39 of the EPF Act 1991.
Additionally, MTUC said it acknowledges the critical role of the EPF in protecting employees’ retirement savings and commends its proactive steps to hold employers accountable.
The decisive measure barring these company directors from leaving the country demonstrates the EPF’s unwavering commitment to enforcing compliance with the EPF Act 1991 and safeguarding the rights and future security of Malaysian workers, said Mohd Effendy.
National Union of Transport Equipment and Allied Industry general secretary N. Gopal Kishnam described the failure by company directors to fulfil their statutory obligations to pay EPF contributions correctly and on time as “daylight robbery”.
“I think these employers should be taken from the airport to the nearest court to be charged, instead of allowing them to post bail,” he said.
However, lawyer Chia Swee Yik questioned whether the provisions of the EPF (Amendment) Act 219 are being exercised with due concern for proportionality and fairness, in particular Section 39 of the EPF Act 1991 that was introduced on Oct 1, 2020.
“It seems rather reasonable that before enforcement, there should be a court judgment against the directors of any EPF defaults.
“This would give them a chance to rectify the situation, especially in cases where they might not have been aware of the severity of the issue,” he said.
