SEPANG, July 10 — Small and Medium Enterprises (SME) that do not have a systematic human resource administration are among the slackest in subscribing to the Social Security Organisation (Socso) for their workers, said its chief executive officer Datuk Seri Mohammed Azman Aziz Mohammed.
He said this issue does not arise with big companies which have human resources teams that are aware of the responsibility to have employees covered by Socso.
“The problem is not with big employers, but the small employers, such as food vendors and retailers who manage most of the company administration on their own,” Mohammed Azman said.
He was speaking to reporters at the Kota Warisan business centre in Sepang earlier today, after the 14th Ops Kesan, which is being carried out from July 1 to July 31 to track employers who have not registered or subscribed their employees with Socso.
All employers, with a minimum of even one employee, must register their company and subscribe their workers to Socso, regardless of the salary, as prescribed under the Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
Earlier in the year, Socso had given a two-month amnesty between May 1 and June 30 to allow more time and space for employers to register and subscribe their workers before enforcing Ops Kesan.
Mohammed Azman said such employers are not aware of their duty to subscribe part-time workers and often cite excuses like ‘do not know’ and ‘not sure’ when they are tracked down.
“Even part-time workers must have subscriptions, as long as they are working at the premises, it is mandatory to register and have them subscribed. We have the salary schedule to calculate the subscription,” he said.
On the 14th Ops Kesan in Sepang, Selangor and Nilai, Negeri Sembilan, since July 1 to date, Mohammed Azman said 1,994 business premises were inspected and 301 Compound Notices under (Act 4) and 87 Compound Notices under (Act 800) have been issued amounting to RM413,900.
Failure to register or subscribe to Socso carries a compound of RM500 to RM5,000 and employers could be sentenced to a maximum of two years in prison or a fine not exceeding RM10,000 or both, upon conviction.
— Bernama
