Employers Have One Month to Register Staff with Socso

Employers who have not registered their companies and employees with the Social Security Organisation (Socso) have been given a grace period of one month before the operation, codenamed Ops Kesan 2019, begins in April.

Grace Period

From 1st until 31st March 2019, any employer who voluntarily registers during this period will be excluded from being issued a compound and prosecution even though the Socso registration deadline has passed.

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

Socso CEO Datuk Seri Dr Mohammed Azman Aziz Mohammed said, “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.”

History of Ops Kesan

Azman said as of 31 December 2018, there were 613,860 registered employers, with 7.17 million workers receiving protection from Socso. Since the first Ops Kesan back in 2009 until 31 December 2017, 19,253 compounds worth more than RM14.14 million have been issued to employers who did not register their companies and employees.

Citing 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 Ops Kesan 2019 would also include foreign workers working legally in Malaysia after the Ministry of Human Resources made it mandatory for employers to make contributions for them from 1 January 2019.

Ops Kesan 2019, which will begin on 1 April 2019, will involve about 500 enforcement staff nationwide. The operation will end until the end of the year to clamp down on unregistered employers.

Second Chance

Malaysian Employers Federation director Datuk Shamsuddin Bardan praised Socso’s move to give a one-month grace period for employers who have not registered 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.

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Source: The Star

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