PEMBANGUNAN SUMBER MANUSIA BERHAD ACT 2001

Pembangunan Sumber Manusia Berhad LAWS OF MALAYSIA REPRINT Act 612 PEMBANGUNAN SUMBER MANUSIA BERHAD ACT 2001 As at 1 November 2017 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 2017 1 2 Act 612 Laws of Malaysia PEMBANGUNAN SUMBER MANUSIA BERHAD ACT 2001 Date of Royal Assent … … … … 15 February 2001 Date of publication in the Gazette … … 1 March 2001 Latest amendment made by P.U. (A) 69/2017 which came into operation on … … … 1 April 2017 … Previous Reprints First Reprint … … … 2002 Second Reprint … … … 2006 Pembangunan Sumber Manusia Berhad 3 LAWS OF MALAYSIA Act 612 PEMBANGUNAN SUMBER MANUSIA BERHAD ACT 2001 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. Short title, application and commencement 2. Interpretation Part II THE CORPORATION 3. Main objective of the Corporation 4. Functions of the Corporation 5. Powers of the Corporation 6. Budget 7. The Board 8. Alternate members 9. Committees 10. Application of the Corporation’s Memorandum and Articles of Association 11. Disclosure of interest 12. Accounts 4 Laws of Malaysia Act 612 Part III REGISTRATION AND HUMAN RESOURCES DEVELOPMENT LEVY Section 13. Duty of employer to register with the Corporation 14. Imposition of levy 15. Imposition of levy on employer who opts to be registered 16. Deregistration of employers 17. Re-registration of employers 18. Interest on levy due but not paid in time 19. Exemption from levy 20. Qualifying conditions 21. Duty of employer to prepare and keep information Part IV HUMAN RESOURCES DEVELOPMENT FUND 22. Establishment of Fund 23. Corporation to be Trustee of Fund 24. Recovery of levy and loan 25. Non-utilization of Fund 26. Investment Panel 27. Power to invest Part V ENFORCEMENT AND INVESTIGATION 28. Authorized officers 29. Functions of the Officer in Charge 30. Delegation of powers 31. Public servants Pembangunan Sumber Manusia Berhad 5 Section 32. Production of authority card 33. Power of authorized officer to ask for information and assess levy 34. Power to examine persons 35. Admissibility of statement 36. Power of search and seizure 37. List of things seized 38. Obstruction of search, etc. 39. Compounding of offences Part VI OFFENCES AND PENALTIES 40. Incorrect declaration, failure to furnish return, etc. 41. Penalty for attempting to obtain or obtaining money or benefit by false or misleading statement or document 42. Repayment 43. General penalty 44. Offences by body corporate or other bodies 45. Joint and several liability of directors, etc. 46. Institution of prosecution 47. Order to register or pay levy Part VII GENERAL PROVISIONS 48. Regulations 49. Power to amend First Schedule 50. Power of Minister to give directions 51. Secrecy 52. Information from any public authorities or statutory bodies 6 Laws of Malaysia Part VIII REPEAL AND TRANSITIONAL PROVISIONS Section 53. Repeal 54. Continuance of laws, etc. 55. Transfer of powers, rights, liabilities and duties 56. Transfer of property 57. Existing contracts 58. Continuance of liability 59. Continuance of civil and criminal proceedings 60. Transfer of Fund 61. Officers and servants of the Council 62. Transfer of registration of employers 63. Prevention of anomalies First Schedule Second Schedule Third Schedule Act 612 Pembangunan Sumber Manusia Berhad 7 LAWS OF MALAYSIA Act 612 PEMBANGUNAN SUMBER MANUSIA BERHAD ACT 2001 An Act to provide for the imposition and collection of a human resources development levy for the purpose of promoting the training and development of employees, apprentices and trainees, the establishment and the administration of the Fund by the Corporation and for matters connected therewith. [16 May 2001, P.U. (B) 127/2001] ENACTED by Parliament of Malaysia as follows: Part I PRELIMINARY Short title, application and commencement 1. (1) This Act may be cited as the Pembangunan Sumber Manusia Berhad Act 2001. (2) This Act shall apply to the classes of employers in the industries specified in Part I of the First Schedule. (3) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette. 8 Laws of Malaysia Act 612 Interpretation 2. In this Act, unless the context otherwise requires— “apprenticeship contract” means a written contract entered into by a person with an employer who undertakes to employ the person and train or have him trained systematically for a trade for a specified period approved by the Chief Executive in the course of which the apprentice is bound to work in the employer’s service; “contract of service” means any agreement, whether oral or in writing and whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his employer as an employee, and includes an apprenticeship contract; “Fund” means the Human Resources Development Fund established under section 22; “Board” means the board of directors of the Corporation; “levy” means the human resources development levy imposed under section 14 or 15; “employer” means any person who has entered into a contract of service to employ any other person as an employee, and includes an agent, manager or factor of such first-mentioned person; “Minister” means the Minister charged with the responsibility for human resources; “authorized officer” means an authorized officer appointed under section 28; “Officer in Charge” means the Officer in Charge appointed by the Minister under section 28; “employee” means any citizen of Malaysia who is employed for wages under a contract of service with an employer, but does not include any domestic servant; “trainee” means a person who is undergoing a practical training programme at an employer’s premises; Pembangunan Sumber Manusia Berhad 9 “training provider” means any body corporate or other body of persons involved in the training or development of human resources; “apprentice” means a person who is undergoing a skill training in a particular field through an apprenticeship contract with an employer and is bound to work in the employer’s service; “Corporation” means the Pembangunan Sumber Manusia Berhad referred to in section 3; “employers’ association” means any association of employers formed with the object of safeguarding the interests of employers and whose members or any of its members are registered with the Corporation; “appointed date” means the date appointed by the Minister under subsection 1(3); “wages” means the basic salary and fixed allowances or other emoluments of a like nature paid in cash by or on behalf of an employer to an employee, and includes any leave pay and arrears of wages but does not include— (a) any contribution paid by an employer on his own account to any pension fund, provident fund, superannuation scheme, retrenchment, termination, lay-off or retirement scheme, thrift scheme or any other fund or scheme established for the benefit or welfare of the employee; (b) any travelling allowance or the value of any travelling concession; (c) any sum payable to the employee to defray special expenses entailed on him by the nature of his employment; (d) any gratuity payable on discharge or retirement; (e) any bonus or commission; or (f) any allowances paid to an apprentice under apprenticeship contract; “monthly wages” means the wages paid by an employer to an employee for the whole or part of the month during which the employee is employed by the employer. 10 Laws of Malaysia Act 612 Part II THE CORPORATION Main objective of the Corporation 3. The main objective of the Corporation incorporated under the * Companies Act 1965 [Act 125] under the name “Pembangunan Sumber Manusia Berhad” shall be the imposition and collection of a human resources development levy for the purpose of promoting the training and development of employees, apprentices and trainees and the establishment and administration of the Fund. Functions of the Corporation 4. The functions of the Corporation are— (a) to assess and determine the types and extent of employees’, apprentices’ and trainees’ training and retraining in keeping with the human resources needs of industries; (b) to promote and stimulate manpower training; and (c) to determine the terms and conditions under which any financial assistance or other benefits are to be given. Powers of the Corporation 5. Without prejudice to its powers as prescribed in its Memorandum and Articles of Association, the Corporation shall have power to do all things expedient or necessary for, or incidental to, the carrying out of its functions, and in particular, but without prejudice to the generality of the foregoing provisions— (a) to collect and recover or cause to be collected and recovered all moneys due to the Fund; (b) to establish guidelines for the processing of applications to the Fund for financial assistance; * NOTE—The Companies Act 1965 [Act 125] has been repealed by the Companies Act 2016 [Act 777] w.e.f. 31 January 2017. Pembangunan Sumber Manusia Berhad 11 (c) to determine the terms and conditions for the making of grants or loans from the Fund, including the amounts that may be approved in respect of each application; (d) to determine the proportion of monies of the Fund which should be used for grants or for loans, including the proportion that should be provided in the form of a grant or by way of a loan in respect of each approved application; (e) to organize, establish, upgrade and maintain, or to assist in the organization, establishment, upgrading and maintenance of, training facilities; (f) to organize and supervise, or to assist in the organization and supervision of, the implementation of training courses, projects and programmes; (g) to examine any records, accounts and any other document relating to the grant, loan or any other benefit granted under this Act to any employer to ensure the grant, loan or other benefit is utilized for the purpose it is granted; (h) to obtain any information from employers to ascertain whether they are required to register under this Act; (i) to employ and pay agents, advocates and solicitors, bankers, stockbrokers or any other persons to transact any business or do any act required to be transacted or done in the exercise of its powers or in the carrying out of its duties or for the better carrying into effect of the purposes of this Act; (j) to grant loans or make advances to its officers and servants from the Fund for such purposes as may be approved by the Minister and on such terms and conditions as the Corporation shall determine; (k) to grant loans or make grants from the Fund on such terms and conditions as the Corporation shall determine to any training provider who in the opinion of the Corporation is able to contribute to the development of human resources; 12 Laws of Malaysia Act 612 (l) to grant loans or make grants from the Fund on such terms and conditions as the Corporation shall determine to any employers’ association to be used for the development of human resources of its members; (m) to prescribe procedures to be followed in matters relating to finance and accounts of the Fund; and (n) to do such other thing as may be expedient or necessary for the efficient management and administration of the Corporation and the Fund. Budget 6. The Corporation shall, in each calendar year, frame a budget showing the estimate income and expenses which it proposes to incur during the following year and shall submit a copy of the budget for the approval of the Minister before such date as may be fixed by the Minister and such budget shall contain provisions adequate in the opinion of the Corporation for the discharge of the liabilities incurred by the Corporation and for the maintenance of a working balance. The Board 7. (1) The board of direc