EMPLOYMENT INSURANCE SYSTEM ACT 2017

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 800 EMPLOYMENT INSURANCE SYSTEM ACT 2017 As at 1 September 2022 This text is ONLY AN UPDATED TEXT of the Employment Insurance System Act 2017 by the Attorney General’s Chambers. Unless and until reprinted pursuant to the powers of the Commissioner of Law Revision under subsection 14(1) of the Revision of Laws Act 1968 [Act 1], this text is NOT AN AUTHENTIC TEXT. 2 EMPLOYMENT INSURANCE SYSTEM ACT 2017 Date of Royal Assent … … … … 27 December 2017 Date of publication in the Gazette … … … … 28 December 2017 Latest amendment made by Act A1657 which came into operation on … … … … 1 September 2022 3 LAWS OF MALAYSIA Act 800 EMPLOYMENT INSURANCE SYSTEM ACT 2017 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 2. Application 3. Interpretation PART II ADMINISTRATION OF EMPLOYMENT INSURANCE SYSTEM 4. Administration of Employment Insurance System 5. Director General 6. Powers of Organization to hold properties, etc. 7. Exercise of functions and powers of Organization PART III COMMITTEES 8. Employment Insurance Committee 9. Establishment of committees 10. Non-eligibility for appointment as members of Employment Insurance Committee or committees 11. Cessation of membership of Employment Insurance Committee or committees 4 Laws of Malaysia ACT 800 Section 12. Disclosure of interest PART IV REGISTRATION AND CONTRIBUTIONS 13. Determination of industry 14. Registration of industry 15. Employers deemed registered 16. All employees to be registered and insured 17. Employees deemed registered 18. Contributions 19. Contributions where employee has more than one employer 20. Payment of contributions 21. Interest on arrears of contributions 22. Assessment of contributions, arrears of contribution and interest in certain cases 23. Recovery of arrears of contributions and interest 24. Employer not to reduce wages, etc. 25. Power to appoint agent 26. Verification of contributions paid through agent PART V BENEFITS 27. Claim for benefits 28. Period for making claim for benefits 29. Determination of period for making claim for benefits 30. Loss of employment 31. Determination on question of loss of employment 32. Determination on contributions qualifying conditions Employment Insurance System Section 33. Approval of claim for benefits 34. Job search allowance 35. Early re-employment allowance 36. Reduced income allowance 37. Training allowance and training fee 38. Benefits not transferable or attachable 39. Payment of benefits to dependant 40. Payment of training fee upon death of insured person 41. Suspension and termination of benefits 42. Repayment of benefits improperly received 43. Rights of insured person under other written laws PART VI RE-EMPLOYMENT PLACEMENT PROGRAMME 44. Re-employment placement programme 45. Power to establish centre or institute PART VII FINANCIAL PROVISIONS 46. Employment Insurance Fund 47. Expenditure to be charged on Fund 48. Expenditure on administration 49. Power to accept grants, donations, etc. 50. Power to invest 51. Power to borrow 52. Annual estimates 53. Accounts and reports 54. Audit 55. Annual report 56. Annual report and audited accounts to be laid 57. Valuation of assets and liabilities 5 6 Laws of Malaysia ACT 800 Section 58. Imposition of surcharge PART VIII SOCIAL SECURITY APPELLATE BOARD 59. Matters to be decided by Appellate Board 60. Institution of proceedings, etc. 61. Commencement of proceedings 62. Powers of Appellate Board 63. Representation in proceedings before Appellate Board 64. Reference to High Court 65. Appeal 66. Stay of payment pending appeal PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION 67. Appointment and functions of Employment Services Officer 68. Power to examine training 69. Powers of enforcement, inspection and investigation 70. Power to require information and conduct inspection 71. Obstructing, etc., Director General, Deputy Directors General and Employment Services Officer 72. Fraud or forgery in connection with payment of contributions or claim for benefits 73. Giving false or misleading information or document 74. Court’s order in respect of contributions or benefits due and payable to Organization 75. Copy of entry to be prima facie evidence, and production of documents 76. Prosecution 77. Compounding of offences Employment Insurance System PART X GENERAL Section 78. Duty to keep returns, particulars, etc. 79. Appointment of collection agent 80. Engagement of auditors, actuaries, etc. 81. Public servant 82. Power of Organization to establish or take over companies 83. Power to exempt 84. Power to amend schedule 85. Power to make regulations 86. Disposal of documents after more than three years 87. Recommendations to review System 88. Offences by body corporate, etc. 89. Organization may deal with authorized person 90. Electronic submission of documents FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE FOURTH SCHEDULE 7 9 LAWS OF MALAYSIA Act 800 EMPLOYMENT INSURANCE SYSTEM ACT 2017 An Act to provide for the Employment Insurance System administered by the Social Security Organization to provide certain benefits and a re-employment placement programme for insured persons in the event of loss of employment which will promote active labour market policies, and for matters connected therewith. [1 January 2018, P.U. (B) 606/2017] ENACTED by the Parliament of Malaysia as follows: PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Employment Insurance System Act 2017. (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette. Application 2. (1) This Act shall apply to all industries having one or more employees. (2) This Act shall not apply to persons described in the First Schedule. 10 Laws of Malaysia ACT 800 Interpretation 3. In this Act, unless the context otherwise requires— “required number of monthly contributions” means the number of monthly contributions paid in respect of an insured person irrespective of whether the contributions are made in consecutive months or not as specified in the Fourth Schedule; “contribution” means the sum of money payable to the Organization by an employer in respect of an insured person and includes any amount payable by or on behalf of the insured person in accordance with this Act; “early re-employment allowance” means an incentive paid in lump sum to an insured person for accepting an offer of employment from any employer and commencing the employment within the waiting period or the period of receiving job search allowance at the rate as specified in the Third Schedule; “training allowance” means a monthly payment to an insured person for a period of not more than six months for attending any training in Malaysia provided by a training provider; “job search allowance” means a monthly payment for a period of three to six consecutive months to assist an insured person who has lost his employment during the period he is seeking for an employment; “reduced income allowance” means a lump sum payment to assist an insured person who has two or more employments and has lost one or more of his employments; “benefit” means a job search allowance, an early re-employment allowance, a reduced income allowance, a training allowance and a training fee; “wages” means all remunerations payable in money by an employer to an employee including any payment in respect of leave, holidays, overtime and extra work on holidays but does not include— Employment Insurance System 11 (a) any contributions payable by the employer to any pension fund, social security fund or provident fund; (b) any traveling allowance or the value of any traveling concession; (c) any sum paid to the employee to pay for special expenses incurred as a result of his employment; (d) any gratuity payable on discharge or retirement; (e) any annual bonus; (f) any benefit under any other written law administered by the Organization; and (g) any other remuneration as prescribed; “Committee” means the Employment Insurance Committee established under section 8; “Appellate Board” means the Social Security Appellate Board constituted under section 83 of the Employees’ Social Security Act 1969 [Act 4]; “Director General” means the Director General of the Organization appointed under subsection 59(1) of the Employees’ Social Security Act 1969; “Fund” means the Employment Insurance Fund established under section 46; “Board” means the Social Security Organization Board established under section 59B of the Employees’ Social Security Act 1969; “employer” means the owner of an industry or the person with whom an employee has entered into a contract of service or apprenticeship and includes— 12 Laws of Malaysia ACT 800 (a) a manager, an agent or a person responsible for the payment of wages to the employee; and (b) the legal representative of the owner of the industry or such person; “Minister” means the Minister charged with the responsibility for human resources; “insured person” means an employee who is registered under section 16 or deemed to have been registered under section 17 in respect of whom contributions are or have been paid, or are payable; “dependant” means a widow or widower, a child, a parent, a sibling under twenty-one years old or a grandparent of the deceased insured person; “officers and servants of the Organization” means the officers and servants of the Organization appointed under section 59L of the Employees’ Social Security Act 1969; “Employment Services Officer” means an officer appointed under section 67 and includes an Inspector; “employee” means a person who is employed for wages under a contract of service or apprenticeship with an employer, whether the contract is expressed or implied or is oral or in writing, on or in connection with the work of an industry to which this Act applies; “training provider” means any person who has a training facility to carry out trainings for the purposes of re-employment placement programme; “Inspector” means an Inspector appointed under section 12 of the Employees’ Social Security Act 1969 and includes the Director General and every Deputy Director General; “Organization” has the meaning assigned to it in the Employees’ Social Security Act 1969; Employment Insurance System 13 “industry” includes any business, trade, undertaking, manufacture or calling of employers, and includes any calling, services, handicraft or industrial occupation of employees; “re-employment placement programme” means a programme managed by the Organization for insured persons for the purposes of re-employment of the insured persons; “System” means the Employment Insurance System established under section 4; “contributions qualifying conditions” means the required number of monthly contributions over an eligibility period as specified in the Fourth Schedule; “eligibility period” means a period comprising a certain number of consecutive months immediately preceding the loss of employment in respect of an insured person as specified in the Fourth Schedule; “waiting period” means the period of seven days from the date of the approval of a claim for benefits under section 33; “Deputy Director General” means the Deputy Director General of the Organization appointed under subsection 59(2) of the Employees’ Social Security Act 1969 including those appointed in accordance with subsection 5(3); “minimum retirement age” has the meaning assigned to it in the Minimum Retirement Age Act 2012 [Act 753]. PART II ADMINISTRATION OF EMPLOYMENT INSURANCE SYSTEM Administration of Employment Insurance System 4. (1) There shall be a social security scheme to be known as the “Employment Insurance System”. 14 (2) Laws of Malaysia ACT 800 The System shall be administered by the Organization. (3) For the purpose of administering the System, the Organization shall vest in the B