Harun bin Mahmud Hashim J:

This is an application for declarations on:

1. Whether arrears of wages paid for retrospective wage increases attract Employees Provident Fund (EPF) contributions. 2. Whether such arrears of wages attract contribu- tions towards Retirement Benefits under the collective agreement signed on the 11 July 1984, between Malayan Commercial Banks Association (of which the defendant is a member) and the plaintiff.

The plaintiff is a trade union of employees and the defendant a member of a trade union of employers, both registered under the Trade Unions Act 1959 . The two trade unions entered into a collective agreement on 11 July 1984 with retrospective effect from 1 January 1984 for a period of three years. The collective agreement was deposited with the Industrial Court which took cognizance of it under s.16 of the Industrial Relations Act 1967 and accordingly bound the plaintiff and the defendant. Under the collective agreement, Class II officers of the defendant bank are entitled to an increase in pay. The defendant accordingly paid arrears of salary in one lump sum to all eligible employees in July 1984.

The plaintiff contends that in paying out the arrears of salary, the defendant should have paid to the EPF contributions on the arrears of salary together with the additional 4% of salary on the arrears as retirement benefits under Article 30 of the collective agreement. The defendant says that the employer trade union (The Malayan Commercial Banks Association) after consulting with the EPF Board, EPF contributions are not payable in respect of arrears of salary and the retirement benefits. Hence this application.

In construing an Act of Parliament, the Act must be read as a whole.

Section 7 of the Employees Provident Fund Act 1951 reads:

(1) Subject to the provisions of s. 16, every employee and every employer of a person who is an employee within the meaning of this Act shall be liable to pay monthly contributions at the rate respectively set out in the Third Schedule to this Act:

Provided that the Board may, at its discretion and on such terms and conditions as it may impose, authorize an employer, or a class or classes of employers, to pay such contributions at intervals of three months.

(2) Without prejudice to the provisions of subsection (1), an employer and an employee or either of them may, at any time elect to pay monthly contributions at a rate which exceeds the rate respectively set out in Third Schedule to this Act by one ringgit or a multiple of one ringgit.

(3) Notice of such election shall be given to the Board in such manner and form as may be prescribed by the Board and where any such notice has been given, this Act shall, in respect of any employer or employee who has elected as aforesaid, apply as if the rate of contribution which such employer or employee has elected to pay, were the rate respectively set out in the Third Schedule to this Act:

Provided that an election cannot be made to take effect retrospectively.

(4) An employer and employee or either of them may, at any time, revoke his election made under subsection (3).

Section 16 (Approved Funds) is not relevant to this application.

Section 16A(1) provides:

Any person who -

(c) being an employer, fails within such period as may be prescribed to pay to the Fund any amount which he is liable under this Act to pay in respect or on behalf of any employee in respect of any month,

shall, on conviction, be liable to a fine not exceeding two thousand ringgit or to imprisonment for a term of not exceeding six months or to both.

The Third Schedule refers to:

Amount of wages for the month.

Section 2 defines "amount of wages for the month" as:

in respect of an employee paid monthly or at intervals of longer than a month, the amount of wages due to him in respect of that month. [Emphasis supplied]

"Wages" is defined in the same section as:

the remuneration in money due to an employee under his contract of serv