1 PART I PRELIMINARY-1. Short title and commencement.

(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 .

2 PART I PRELIMINARY-2. Application.

(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.

3 PART I PRELIMINARY-3. Interpretation.

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;

4 PART II ADMINISTRATION OF EMPLOYMENT INSURANCE SYSTEM-4. Administration of Employment Insurance System.

(1) There shall be a social security scheme to be known as the "Employment Insurance System".

(2) The System shall be administered by the Organization.

(3) For the purpose of administering the System, the Organization shall vest in the Board such powers and shall impose upon the Board such duties as the Organization may determine.

5 PART II ADMINISTRATION OF EMPLOYMENT INSURANCE SYSTEM-5. Director General.

(1) The Director General of the Organization shall be the Director General for the purposes of this Act.

(2) The Deputy Directors General of the Organization shall be the Deputy Directors General for the purposes of this Act.

(3) Notwithstanding subsection (2), the Minister may appoint one or more Deputy Directors General for the purposes of this Act.

(4) If for any period the Director General is temporarily absent from Malaysia or temporarily incapacitated through illness, or for any other reasons is unable to perform his duties, or where the office of the Director General becomes vacant, the Minister shall appoint one of the Deputy Directors General to perform the duties of the Director General during such period.

(5) The terms and conditions of the service of the Deputy Directors General appointed under subsection (3) shall be determined by the Minister after consultation with the Minister of Finance.

6 PART II ADMINISTRATION OF EMPLOYMENT INSURANCE SYSTEM-6. Powers of Organization to hold properties, etc .

The Organization may, upon such terms and conditions as the Organization deems fit for the purposes of this Act-

(a) enter into contracts;

(b) acquire, purchase, take, hold and enjoy movable and immovable property of every description; and

(c) convey, assign, surrender, yield up, charge, mortgage, demise, lease, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest vested in the Organization.

7 PART II ADMINISTRATION OF EMPLOYMENT INSURANCE SYSTEM-7. Exercise of functions and powers of Organization.

(1) All functions including powers which may be exercised by the Organization under this Act shall be exercised by the Director General.

(2) Notwithstanding subsection (1), the Director General may, in writing, delegate any of his powers and functions subject to such terms and restrictions as he thinks fit to the Deputy Directors General, Employment Services Officers, or officers and servants of the Organization for the purposes of this Act.

8 PART III COMMITTEES-8. Employment Insurance Committee.

(1) A committee by the name of "Employment Insurance Committee" is established.

(2) The function of the Committee is to advise the Board on all matters relating to the System including the rates of contribution, benefits and the employees to be insured under this Act, and on matters relating to the investment of the Fund.

(3) The Committee shall consist of the following members:

(a) the Chairman of the Board who shall be the Chairman;

(b) the Director General who shall be the Deputy Chairman;

(c) one member representing the Ministry responsible for human resources;

(d) one member representing the Ministry responsible for finance;

(e) one member representing the Prime Minister's Office responsible for economic planning;

(f) one member representing the department responsible for labour in Peninsular Malaysia;

(g)<

9 PART III COMMITTEES-9. Establishment of committees.

(1) The Board may establish any committee as the Board deems necessary or expedient to advise and assist the Board in the performance of its functions and in the exercise of its powers under this Act.

(2) The Board may delegate its functions and powers to any such committee subject to such terms and restrictions as the Board considers fit.

(3) Any committee established under subsection (1)-

(a) shall be chaired by the Chairman of the Board;

(b) shall conform to and act in accordance with any direction given to the committee by the Board; and

(c) may determine its own procedure.

(4) The members of the committee established under subsection (1) may be appointed from amongst the members of the Board or such other persons as the Board thinks fit.

(5) The members of the committee shall be paid such allowances and other expenses as the Board may dete

10 PART III COMMITTEES-10. Insurance Committee or committees.

The following persons are not eligible to be appointed as or become a member of the Committee, or any committee established under section 9:

(a) a person who has been convicted of an offence involving fraud, cheating, criminal breach of trust, criminal misappropriation of property or any offence involving dishonesty or moral turpitude and sentenced to imprisonment for a term not less than one year;

(b) a bankrupt; and

(c) a person of unsound mind or is otherwise unable to carry out his functions.

11 PART III COMMITTEES-11. Cessation of membership of Employment Insurance Committee or committees.

A member of the Committee, or any committee established under section 9, shall cease to be a member if he fails to attend three consecutive meetings without leave of the Chairman of the Committee or committee, as the case may be.

12 PART III COMMITTEES-12. Disclosure of interest.

If any member of the Committee, or committee established under section 9, has any direct or indirect interest in any matter being considered by the Committee or committee established under section 9, as the case may be, he shall forthwith declare to the Chairman the nature and extent of his interest in the matter and the member shall not be present or take part in any discussion or decision of the Committee or committee established under section 9, as the case may be, about the matter.

13 PART IV REGISTRATION AND CONTRIBUTIONS-13. Determination of industry.

The Organization may, on the basis of any information or evidence available to the Organization, determine whether any activity carried out by any person falls within the meaning of "industry" to which this Act applies.

14 PART IV REGISTRATION AND CONTRIBUTIONS-14. Registration of industry.

(1) Every employer shall register his industry to which this Act applies with the Organization within such period and in such manner as prescribed.

(2) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

15 PART IV REGISTRATION AND CONTRIBUTIONS-15. Employers deemed registered.

Notwithstanding subsection 14(1), an employer that has registered his industry with the Organization in accordance with the Employees' Social Security Act 1969 before the coming into operation of this Act shall be deemed to have registered his industry under this Act on the date this Act comes into operation.

16 PART IV REGISTRATION AND CONTRIBUTIONS-16. All employees to be registered and insured.

(1) All employees in the industries to which this Act applies shall be registered and insured by the employers-

(a) in the case of employees who are employed on or before the date the industries are registered under section 14, on the date the industries of the employers are so registered; and

(b) in the case of employees who are employed after the date the industries are registered under section 14 or 15, within thirty days from the date the employees enter into employment,

in such manner as prescribed irrespective of the amount of wages.

(2) Notwithstanding subsection (1), if the wages of an employee at any time exceed five thousand ringgit a month, his wages shall for the purposes of this Act be deemed to be five thousand ringgit a month.

[Am. by Act A1657]

(3) Notwithstanding that the employee in the industries to which this Act appli

17 PART IV REGISTRATION AND CONTRIBUTIONS-17. Employees deemed registered.

(1) Notwithstanding subsection 16(1), an employee in the industry to which the Employees' Social Security Act 1969 applies that has been registered with the Organization in accordance with the Employees' Social Security Act 1969 before the coming into operation of this Act shall be deemed to have been registered under this Act on the date this Act comes into operation.

(2) The registration of the employees referred to in subsection (1) shall be subject to the First Schedule.

18 PART IV REGISTRATION AND CONTRIBUTIONS-18. Contributions.

(1) The contributions payable under this Act in respect of an employee shall comprise a contribution payable by the employer and a contribution payable by the employee.

(2) The contributions payable under this Act shall be paid to the Organization at the rates as specified in the Second Schedule based on the amount of the monthly wages of the employee insured under this Act.

(3) The Minister may revise the rates of contribution after taking into consideration the sustainability of the Fund.

(4) Notwithstanding subsection (2), the Minister may, by order published in the Gazette and subject to such conditions, determine-

(a) the minimum rate of contribution to be paid by an employer in respect of an employee based on the amount of the monthly wages of the employee insured in accordance with the Second Schedule; and

(b) the minimum rate of benefits to be provided by the Organi

19 PART IV REGISTRATION AND CONTRIBUTIONS-19. Contributions where employee has more than one employer.

If an employee has two or more employers, every employer shall pay the contributions in respect of the employee separately.

20 PART IV REGISTRATION AND CONTRIBUTIONS-20. Payment of contributions.

(1) A contribution shall be paid in respect of an employee registered under section 16 or deemed to have been registered under section 17 every month for the wages payable to the employee for that month within such period and in such manner as prescribed.

(2) The contributions payable in respect of an employee shall cease when the employee attains the minimum retirement age.

21 PART IV REGISTRATION AND CONTRIBUTIONS-21. Interest on arrears of contributions.

If the amount of the monthly contribution payable by the employer in respect of an employee under section 18 is not paid within such period as referred to in section 20, the employer shall be liable to pay interest on such amount to the Organization at the rate as prescribed by the Minister in respect of any period during which such amount remains unpaid.

22 PART IV REGISTRATION AND CONTRIBUTIONS-22. Assessment of contributions, arrears of contribution and interest in certain cases.

(1) An Employment Services Officer may assess any contribution, arrears of such contribution or interest on arrears of such contribution which is due from any employer based on any information available if the employer-

(a) fails to pay the contribution, arrears on such contribution or interest on arrears of such contribution payable in respect of an employee; and

(b) fails to-

(i) keep or maintain any return, particulars, register book or record pertaining to each employee as required to be kept or maintained by the employer under this Act; or

(ii) submit any return, particulars, register book or record pertaining to each employee as required under this Act.

(2) The Employment Services Officer shall serve the assessment made under subsection (1) on the employer either personally or by registered post.

23 PART IV REGISTRATION AND CONTRIBUTIONS-23. Recovery of arrears of contributions and interest.

(1) The Organization may recover any arrears of contributions or interest on arrears of contributions from the employers as a debt due to the Organization.

(2) The amount of contributions, arrears of contributions or interest on arrears of contributions payable in respect of an employee as assessed under subsection 22(1) shall be conclusive evidence of such amount.

(3) The employer shall pay any arrears of contributions in respect of an employee to the Organization and the employer is entitled to recover the contributions payable by the employee in respect of the arrears from the employee for the period of not more than six months.

24 PART IV REGISTRATION AND CONTRIBUTIONS-24. Employer not to reduce wages, etc .

(1) Employer shall not, solely by reason of his liability for any contributions payable under this Act, directly or indirectly, reduce the wages of any employee, or discontinue or reduce benefits payable to the employee under the conditions of service which are similar to the benefits conferred by this Act except as provided for in any other written law.

(2) Any employer who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

25 PART IV REGISTRATION AND CONTRIBUTIONS-25. Power to appoint agent.

(1) The Organization may appoint such number of agents subject to such terms and conditions to collect and receive payment of contributions on behalf of the Organization.

(2) The agents appointed under subsection (1) shall, as soon as practicable, inform the Organization the actual time and date of the payment of the contributions made by the employer.

(3) Any agent who contravenes subsection (2) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

26 PART IV REGISTRATION AND CONTRIBUTIONS-26. Verification of contributions paid through agent.

Any contribution paid to the Organization by an employer through any agent appointed under section 25 shall be verified by the Organization.

27 PART V BENEFITS-27. Claim for benefits.

Every claim for benefits under this Act shall be submitted in such manner to the Organization with such evidence in support of the claim as prescribed.

28 PART V BENEFITS-28. Period for making claim for benefits.

An insured person who considers that he has lost his employment shall submit an application for claim for benefits to the Organization within sixty days from the date he considers that he has lost his employment.

29 PART V BENEFITS-29. Determination of period for making claim for benefits.

(1) Upon receipt of the claim for benefits under section 28, the Organization shall determine the date on which the insured person has lost his employment.

(2) If a claim for benefits is made after the period of sixty days from the date determined under subsection (1), the Organization shall reject the claim and notify the insured person in writing in such manner as prescribed.

(3) If the claim for benefits is rejected under subsection (2), the claim for benefits shall be deemed to have never been made by the insured person.

30 PART V BENEFITS-30. Loss of employment.

(1) Loss of employment occurs if the contract of service of an insured person is terminated or becomes void due to any reason other than the following:

(a) the voluntary resignation by the insured person;

(b) the expiry of the contract of service of the insured person;

(c) termination of the contract of service by mutual consent of the employer and the insured person without terms and conditions;

(d) completion of the work in accordance with the terms of the contract of service;

(e) the retirement of the insured person; or

(f) the termination of contract of service of the insured person due to misconduct.

(2) For the purpose of paragraph (1) (a) , "voluntary resignation" means an act by an insured person to terminate his contract of service with an employer at any time during the period of the contract of servi

31 PART V BENEFITS-31. Determination on question of loss of employment.

(1) Any question or dispute on whether loss of employment has occurred shall be determined by the Organization.

(2) For the purpose of determination under subsection (1), the Director General or any officer of the Organization authorized by the Director General may refer to any authorities under any written laws for the verification of the loss of employment in relation to any claim for benefits by an insured person under this Act.

(3) If the Organization determines that loss of employment has not occurred, the claim for benefits shall be rejected and the claim for benefits shall be deemed to have never been made by the insured person.

32 PART V BENEFITS-32. Determination on contributions qualifying conditions.

(1) After the Organization determines that the insured person has lost his employment under section 31, the Organization shall determine whether-

(a) the insured person fulfils the contributions qualifying conditions in respect of the claim for benefits as specified in the Fourth Schedule; and

(b) the insured person has not attained the minimum retirement age,

on the date he lost his employment.

(2) For the purpose of calculating the required number of monthly contributions, the contribution payable for the month the insured person has lost his employment shall be taken into account irrespective of whether wages for the month are paid to the insured person or not.

(3) If before an insured person lost his employment he receives monthly temporary disablement benefits under the Employees' Social Security Act 1969 and the employer does not pay any wages to the insured pers

33 PART V BENEFITS-33. Approval of claim for benefits.

(1) After considering the contributions qualifying conditions in respect of a claim for benefits by an insured person-

(a) in the case where the contributions qualifying conditions is fulfilled, the Organization shall approve the claim for benefits; and

(b) in the case where the contributions qualifying conditions is not fulfilled, the Organization shall reject the claim for benefits and the claim for benefits shall be deemed to have never been made by the insured person.

(2) The Organization shall notify its decision made under subsection (1) to the insured person.

(3) After approving the claim for benefits under paragraph (1) (a) , the Organization shall determine the relevant benefits to be provided to the insured person.

34 PART V BENEFITS-34. Job search allowance.

(1) Subject to sections 35 and 36, if the claim for benefits in respect of an insured person has been approved under section 33, the insured person shall be entitled to a job search allowance-

(a) at the rate as specified in the Third Schedule; and

(b) for the period which shall be in accordance with the contributions qualifying conditions in respect of the claim for benefits by the insured person as specified in the Fourth Schedule.

(2) The payment for the job search allowance shall be made by the Organization immediately after the waiting period in such manner as prescribed.

(3) If an insured person has attained the minimum retirement age, the payment for the job search allowance shall continue to be paid to the insured person if the loss of employment occurs before the minimum retirement age.

(4) An insured person shall not be in any employment during the period of

35 PART V BENEFITS-35. Early re-employment allowance.

(1) If an insured person-

(a) accepts an offer of employment and reports duty for work within the waiting period;

(b) accepts an offer of employment within the waiting period but reports duty for work within the period of receiving a job search allowance; or

(c) accepts an offer of employment and reports duty for work within the period of receiving a job search allowance,

the insured person shall be entitled to an early re-employment allowance at the rate as specified in the Third Schedule in such manner as prescribed.

(2) If an insured person is entitled to an early re-employment allowance in accordance with paragraph (1) (b) or (c) -

(a) the insured person shall be paid the early re-employment allowance on the month following the month the insured person has reported duty for work with an employer; and

36 PART V BENEFITS-36. Reduced income allowance.

(1) If an insured person has two or more employments at the same time and has lost one or more of his employments, whether on the same date or not, but has not lost all of the employments-

(a) the insured person shall be entitled to a reduced income allowance for each loss of employment-

(i) at the rate as specified in the Third Schedule; and

(ii) for the period which shall be in accordance with the contributions qualifying conditions in respect of the claim for benefits by the insured person as specified in the Fourth Schedule; and

(b) the insured person shall not be entitled to a job search allowance, a training allowance or an early re-employment allowance.

(2) The reduced income allowance shall be paid lump sum to the insured person.

(3) If an insured person who has two or more employments at the same time-

37 PART V BENEFITS-37. Training allowance and training fee.

(1) If an insured person has lost an employment, he may apply to the Organization to undergo any training provided by a training provider approved by the Organization-

(a) within the period the insured person receives the job search allowance;

(b) within the period of not more than twelve months after the period the insured person receives the job search allowance; or

(c) within the period of six months after accepting an offer of employment and reporting duty for work.

(2) The Organization may approve the application under subsection (1) subject to such conditions as determined by the Organization.

(3) An insured person who attends any training provided by a training provider approved by the Organization shall be entitled to a training allowance which shall not be more than six months from the date as determined by the Organization at the rate as specified in

38 PART V BENEFITS-38. Benefits not transferable or attachable.

(1) The right to receive any benefit under this Act shall not be transferable or assignable.

(2) No benefits payable under this Act shall be liable to attachment by any decree or order of any court.

39 PART V BENEFITS-39. Payment of benefits to dependant.

(1) If an insured person dies, is in coma or is of unsound mind-

(a) after the insured person has made a claim for benefits under this Act; or

(b) during the period which he is entitled to or is receiving a job search allowance, an early re-employment allowance, a reduced income allowance or a training allowance under this Act,

the job search allowance, early re-employment allowance, reduced income allowance or training allowance shall be paid to his dependants in such manner as determined by the Organization.

(2) If an insured person dies, is in coma or is of unsound mind in accordance with subsection (1), any training allowance that has been overpaid to the insured person for the remaining duration of his training after such circumstances occur shall not be recovered by the Organization.

40 PART V BENEFITS-40. Payment of training fee upon death of insured person.

Upon the death of an insured person who is undergoing any training, the Organization shall pay the training fee to any training provider for the training that the insured person has attended as agreed between the Organization and the training provider.

41 PART V BENEFITS-41. Suspension and termination of benefits.

(1) The Organization may, at any time, suspend any benefit being received by an insured person if there is reasonable ground to believe that-

(a) the insured person has furnished false, untrue or incorrect particulars, documents or returns at the time of the claim for benefits is made or during the claim for benefits is being considered by the Organization under this Act;

(b) the insured person is employed by any employer within the period of receiving the job search allowance; or

(c) the insured person has contravened any provisions of this Act or the regulations made under this Act.

(2) The Organization may suspend the payment of any benefit for a period of not more than sixty days.

(3) If the Organization decides to suspend any benefit received by an insured person under subsection (1), the Organization shall carry out an inquiry in respect of the suspensio

42 PART V BENEFITS-42. Repayment of benefits improperly received.

(1) Subject to section 39, where an insured person has received any benefit under this Act which he is not entitled to, he shall be liable to repay the amount of such benefit to the Organization, or in the case of the death of an insured person, the administrator of the deceased insured person's estate shall be liable to repay the amount of such benefit to the Organization from the deceased insured person's estate.

(2) The amount of the benefit received under subsection (1) shall be recovered as a debt due to the Organization.

(3) Notwithstanding subsections (1) and (2), where any person has received any benefit under this Act which he is not entitled to, and subsequently becomes entitled to any other benefit under this Act, the Organization may set off the amount of the benefit which he is not entitled to against the amount of the other benefits which he becomes entitled to.

43 PART V BENEFITS-43. Rights of insured person under other written laws.

(1) Any claim for benefits made under this Act shall not operate as a bar to-

(a) any representation for reinstatement of employment under the Industrial Relations Act 1967 [Act 177] ;

(b) any claim for termination or lay-off benefits payment under the Employment Act 1955 [Act 265] , the Labour Ordinance of Sabah [Sabah Cap. 67] and the Labour Ordinance of Sarawak [Sarawak Cap. 76] ; and

(c) any complaint relating to premature retirement under the Minimum Retirement Age Act 2012.

(2) If an insured person makes a claim for benefits to the Organization under this Act and also makes a representation, claim or complaint under paragraph (1) (a) , (b) or (c) , as the case may be, the Organization shall hold the determination on the question of loss of employment in respect of the claim for benefits until the insured p

44 PART VI RE-EMPLOYMENT PLACEMENT PROGRAMME-44. Re-employment placement programme.

(1) Where an insured person makes a claim for benefits and the Organization has determined that the insured person has lost his employment, the insured person shall commence participation in the re-employment placement programme within the waiting period in such manner as prescribed.

(2) The insured person-

(a) shall comply with any direction given by the Organization in respect of the re-employment placement programme;

(b) shall be a person who is able and available to work, and actively seeking for work; and

(c) shall undergo any training as determined by the Organization.

(3) If there is any offer of employment from any employer that is suitable to the insured person, the Organization shall inform such offer to the insured person.

(4) The insured person may accept the offer of employment under subsection (3) and shall inform the Organization of acce

45 PART VI RE-EMPLOYMENT PLACEMENT PROGRAMME-45. Power to establish centre or institute.

The Organization may establish any centre or institute for the purpose of providing the re-employment placement programme to insured persons.

46 PART VII FINANCIAL PROVISIONS-46. Employment Insurance Fund.

(1) A fund to be known as the "Employment Insurance Fund" is established and shall be administered and controlled by the Organization.

(2) The Fund shall consist of-

(a) contributions payable by employers and insured persons;

(b) rents, interests, dividends and any other incomes derived from the assets of the Fund;

(c) sums accruing to the Fund under this Act including the repayment of benefits;

(d) moneys borrowed by the Organization under this Act;

(e) fees and any interest on arrears of contributions imposed by or payable to the Organization under this Act;

(f) moneys derived as income from the investment by the Organization under this Act;

(g) moneys received by the Organization by way of grants, donations and gifts for the purpose of this Act;

(h) moneys derived from the sale, disposal, lease

47 PART VII FINANCIAL PROVISIONS-47. Expenditure to be charged on Fund.

The Fund shall be expended for the following purposes:

(a) the payment of benefits;

(b) the payment of training fees to training providers in relation to the cost of training given by training providers to insured persons;

(c) the payment of any expenses properly incurred for the re-employment placement programme in respect of insured persons including expenses incurred for collaboration with any institution;

(d) the payment of expenses for the evaluation and impact study of the System;

(e) the establishment and maintenance of centres or institutes for the purposes of re-employment placement programme;

(f) the payment of expenses or costs incurred by the Organization for the establishment of the Appellate Board for the purpose of this Act;

(g) the payment of expenses or moneys required to satisfy any judgment, decision or

48 PART VII FINANCIAL PROVISIONS-48. Expenditure on administration.

(1) Notwithstanding section 47, expenditure may be incurred by the Organization out of the Fund up to such amount as the Minister may authorize as prescribed, for any one year, for carrying on the administration of the System for the following purposes:

(a) paying for salaries, bonus, leave and transfer expenses, travelling and compensatory allowances, gratuities and compassionate allowances, contributions to benefit fund, welfare and recreation of the officers and servants of the Organization including the granting of loans and advances, and expenditure in respect of offices and payment of other services provided under this Act or any regulations made under this Act;

(b) paying for fees and other remunerations to any auditor, actuary, agent, technical adviser, banker, stockbroker, surveyor, consultant or any other persons employed to carry into effect the purpose of this Act;

(c) purchasi

49 PART VII FINANCIAL PROVISIONS-49. Power to accept grants, donations, etc .

The Organization may accept grants, donations, gifts or bequests made to or in favour of the Fund.

50 PART VII FINANCIAL PROVISIONS-50. Power to invest.

(1) For the purpose of this section-

  "debentures"  includes debenture stock, bond, note or other securities or obligations of a company, whether constituting a charge on the assets of the company or not and also includes the right to subscribe for any debenture;

  "shares"  means the paid-up shares whether fully paid or not in the share capital of a company and includes stocks and rights to subscribe for any stock or shares.

(2) The moneys in the Fund shall, in so far as the moneys are not immediately required to be expended by the Organization under this Act or any regulations made under this Act, be invested subject to such terms and conditions as determined by the Minister after consultation with the Minister of Finance as follows:

(a) in investments or securities authorized for the inve

51 PART VII FINANCIAL PROVISIONS-51. Power to borrow.

(1) The Organization may, with the consent of the Minister of Finance, borrow any money required by the Organization for meeting any of its obligations or performing any of its functions at such rate of interest and for such period and upon such terms and conditions as to the time and method of repayment and otherwise as the Minister may approve.

(2) No moneys from any fund administered by the Organization under any other written law may be utilized for the purpose of borrowing under subsection (1).

52 PART VII FINANCIAL PROVISIONS-52. Annual estimates.

(1) The Organization shall in each year prepare a budget showing the probable receipts and the estimate of the expenditure of the Organization for the ensuing year containing such adequate particulars as the Minister may determine for the discharge of the liabilities incurred by the Organization and for the maintenance of a working balance under this Act.

(2) The budget shall be submitted for the approval of the Minister before such date as he may fix.

53 PART VII FINANCIAL PROVISIONS-53. Accounts and reports.

The Organization shall cause proper accounts of the Fund and proper records of its activities to be kept and shall, as soon as practicable after the end of each financial year, cause to be prepared for that financial year-

(a) a statement of accounts of the Organization which shall include a balance sheet and an account of income and expenditure; and

(b) a report of the works and activities of the Organization.

54 PART VII FINANCIAL PROVISIONS-54. Audit.

(1) The accounts of the Organization shall be audited annually by the Auditor General.

(2) The Auditor General or any person authorized by him shall at all reasonable times have access to the books, accounts and other documents of the Organization and may, for the purpose of an audit, require any explanation and information from, or examine, any officer and servant of the Organization.

(3) The Board shall forward to the Minister a copy of the auditor's report and any observations together with a copy of the audited accounts of the Organization.

(4) The Minister may direct the Board to send a copy of the auditor's report and any statement of accounts to any Government department and such statement of accounts to the Auditor General as necessary.

55 PART VII FINANCIAL PROVISIONS-55. Annual report.

The Board shall submit to the Minister the annual report of the works and activities of the Organization before 30 June the following year unless otherwise extended by the Minister.

56 PART VII FINANCIAL PROVISIONS-56. Annual report and audited accounts to be laid.

The Board shall cause the annual report and the audited accounts of the Organization to be laid before each House of Parliament.

57 PART VII FINANCIAL PROVISIONS-57. Valuation of assets and liabilities.

(1) The Board shall, in every five years, cause an actuarial review to be carried out on the implementation of the System under this Act, involving a valuation of the assets and liabilities of the Organization, and such report shall be submitted to the Minister.

(2) Notwithstanding subsection (1), the Minister may direct that such actuarial review and the valuation of the assets and liabilities to be made at any other time as he considers necessary.

58 PART VII FINANCIAL PROVISIONS-58. Imposition of surcharge.

(1) The Organization may impose surcharge on any person who is or was in the employment of the Organization in such manner as determined by the Board if it appears to the Board that the person-

(a) is or was responsible for any improper payment of moneys from the Fund or for any payment of such moneys which is not duly vouched;

(b) is or was responsible for any deficiency in, or for the destruction of, any moneys, securities, stores or other properties of the Organization;

(c) being or having been an accounting officer, fails or has failed to keep proper accounts or records; or

(d) has failed to make any payment, or is or was responsible for any delay in the payment of money from the Fund to any person to whom such payment is due under any contract, agreement or arrangement entered into between that person and the Organization.

(2) The Board shall, be

59 PART VIII SOCIAL SECURITY APPELLATE BOARD-59. Matters to be decided by Appellate Board.

(1) The Appellate Board shall have the power to decide in respect of any question, dispute, claim or appeal referred to the Appellate Board by any person relating to the following matters:

(a) whether any person is an employee within the meaning of this Act;

(b) whether an employer or employee is liable to pay contribution;

(c) whether any activity carried out by any person is an industry within the meaning of this Act;

(d) whether an insured person has lost an employment in accordance with this Act;

(e) the wages or assumed monthly wages of an insured person for the purposes of this Act;

(f) the rate of contribution payable by an employer in respect of his employee;

(g) whether a person is or was an employer in respect of any employee;

(h) the entitlement of any insured person to any benefit including the

60 PART VIII SOCIAL SECURITY APPELLATE BOARD-60. Institution of proceedings, etc .

(1) All proceedings before the Appellate Board shall be instituted in the Appellate Board established for the area in which the insured person was working at the time of the question, dispute, claim or appeal arises.

(2) The Chairman of the Appellate Board may, upon application made by the parties to the Appellate Board, transfer any matter pending before him in a State or area to any other Appellate Board in another State or area and shall give his reasons for allowing or not allowing the application for transfer.

(3) The Appellate Board to which any matter or proceedings is transferred under subsection (2) shall continue to decide on the matter or proceedings as if the matter or proceedings had been originally instituted in such Appellate Board.

61 PART VIII SOCIAL SECURITY APPELLATE BOARD-61. Commencement of proceedings.

(1) The proceedings before an Appellate Board in respect of any question, dispute, claim or appeal referred to in section 59 shall be commenced by an application in the manner as prescribed.

(2) Every application under subsection (1) shall be made within sixty days from the date on which the cause of action arises.

(3) For the purpose of subsection (2)-

(a) the cause of action in respect of a claim for benefits shall be deemed to arise from the date the insured person received the written decision of the Organization on such claim; and

(b) the cause of action in respect of any claim by the Organization for recovering contributions from an employer shall be deemed to arise from the date of the evidence of contributions payable is due to be received by the Organization.

62 PART VIII SOCIAL SECURITY APPELLATE BOARD-62. Powers of Appellate Board.

(1) The Appellate Board shall have all the powers of a Sessions Court Judge for the purposes of summoning and enforcing the attendance of witnesses, the discovery and production of documents and materials, administering oath and recording evidence.

(2) All costs incidental to any proceedings before the Appellate Board is subject to the discretion of the Appellate Board.

(3) An order of the Appellate Board shall be enforceable as if it was a judgment of a Sessions Court.

63 PART VIII SOCIAL SECURITY APPELLATE BOARD-63. Representation in proceedings before Appellate Board.

Any person may, at any proceedings before the Appellate Board except the appearance of the person for the purposes of his examination as a witness, appear personally or be represented by a legal practitioner, or by any person authorized in writing by the person, or where there is no authorization in writing, by any person allowed by the Appellate Board to appear on behalf of the person.

64 PART VIII SOCIAL SECURITY APPELLATE BOARD-64. Reference to High Court.

The Appellate Board may submit any question of law for the decision of the High Court and the Appellate Board shall decide the question pending before the Appellate Board in accordance with such decision.

65 PART VIII SOCIAL SECURITY APPELLATE BOARD-65. Appeal.

(1) No appeal shall be made to the High Court against an order of the Appellate Board unless it involves a question of law or a mixed question of law and fact.

(2) The appeal referred to in subsection (1) shall be made within sixty days from the date of the written order is made by the Appellate Board.

66 PART VIII SOCIAL SECURITY APPELLATE BOARD-66. Stay of payment pending appeal.

Where the Organization has made an appeal against an order of the Appellate Board, the Appellate Board may, and if directed by the High Court shall, pending the decision of the appeal, withhold the order appealed against relating to the payment of any sum of money.

67 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-67. Appointment and functions of Employment Services Officer.

(1) The Minister may appoint such number of Employment Services Officer who shall have the following functions:

(a) to verify on loss of employment;

(b) to carry out the re-employment placement programme including job search, job counselling, job matching, job placement, career advising and vocational training;

(c) to collect, analyse and provide labour market information;

(d) to undertake and coordinate studies on labour and labour market issues, including social security;

(e) to perform any other functions as determined by the Organization from time to time.

(2) The Director General may give any direction to any Employment Services Officer as he thinks necessary to ensure that the functions of the Employment Services Officer is performed in accordance with this Act.

68 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-68. Power to examine training.

The Employment Services Officer may examine any training provided by a training provider including the following:

(a) any premises and facilities used for the training whether in compliance with any directions given by the Organization under this Act;

(b) any training programme and duration of the training whether conducted as agreed by the Organization;

(c) any document and record relating to the attendance of an insured person; and

(d) any document and record relating to claims for training fees submitted by the training provider to the Organization.

69 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-69. Powers of enforcement, inspection and investigation.

(1) The Employment Services Officer shall have all the powers of a police officer of whatever rank as provided for under the Criminal Procedure Code [Act 593] , except the power to arrest without warrant, in relation to enforcement, inspection and investigation, and such powers shall be in addition to the powers conferred by this Act and not in derogation thereof.

(2) The Employment Services Officer may examine any person if the Employment Services Officer has reasonable grounds to believe that the person has relevant information or document relating to any industry.

70 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-70. Power to require information and conduct inspection.

(1) For the purpose of obtaining information as to whether any person has made payment of contributions or any other information relating to a claim of benefits under this Act, the Director General or any officer of the Organization authorized by the Director General may, by notice in writing, require any person who he has reasonable grounds to believe that the person has any information or document, or is capable of giving any evidence, that is relevant to the payment of contributions or to the claim for benefits under this Act-

(a) to provide such information to the Director General or any officer of the Organization authorized by the Director General within such time as may be specified in the notice; or

(b) to attend personally before the Director General or any officer of the Organization authorized by the Director General and to produce for examination any book, account, record and other documents in

71 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-71. Obstructing, etc , Director General, Deputy Directors General and Employment Services Officer.

Any person who-

(a) fails to comply with any direction given by the Director General, or any Deputy Director General or Employment Services Officer while exercising his powers and performing his functions under this Act or any regulations made under this Act; or

(b) in any way assaults, hinders or obstructs the Director General, or any Deputy Director General or Employment Services Officer while exercising his powers and performing his functions under this Act or any regulations made under this Act,

commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

72 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-72. Fraud or forgery in connection with payment of contributions or claim for benefits.

Any person who commits or conspires to commit any act of fraud or forgery in connection with the payment of contributions or a claim for benefits commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

73 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-73. Giving false or misleading information or document.

Any person who-

(a) provides or causes any person to provide any information or document to the Organization which he knows or has reasons to believe is false or misleading; or

(b) makes in writing or signs any declaration, form, report, certificate or other documents required by this Act or any regulations made under this Act which is untrue or incorrect in any material particular, commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

74 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-74. Court's order in respect of contributions or benefits due and payable to Organization.

(1) Any person who has been found guilty of any offence under section 72 or 73 and cause any non-payment of contributions to the Organization or cause any benefit under this Act to be improperly received, the court before which the person is found guilty shall order such person to pay to the Organization the amount of any contribution or benefit, together with any interest credited on such amount, due and payable to the Organization.

(2) The amount of any contribution or benefit referred to in subsection (1) shall be certified by an officer of the Organization authorized by the Director General to be due from such person prior to the date of such finding of guilt and the certification of the authorized officer shall be prima facie evidence of the amount due and payable.

(3) Any contribution or benefit referred to in subsection (1) shall be recoverable in the same manner as, and shall be appealable as if it was, an order for payment of c

75 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-75. Copy of entry to be prima facie evidence, and production of documents.

(1) In any legal proceedings under this Act, a copy of any entry in the accounts of the Organization duly certified by an officer of the Organization authorized by the Director General shall be prima facie evidence of such entry having been made and of the truth of the contents of the entry.

(2) The court may, upon application by the Public Prosecutor, require any person to produce any document which is in his possession and relevant to the case, and such document shall be produced within the time specified by the court.

76 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-76. Prosecution.

No prosecution shall be instituted for any offence under this Act or any regulations made under this Act except by or with the consent in writing of the Public Prosecutor.

77 PART IX EMPLOYMENT SERVICES OFFICER, ENFORCEMENT AND INVESTIGATION-77. Compounding of offences.

(1) The Minister may, with the approval of the Public Prosecutor, make regulations prescribing-

(a) any offence under this Act or any regulations made under this Act as an offence which may be compounded;

(b) the criteria for compounding such offence; and

(c) the method and procedure for compounding such offence.

(2) The Director General or any officer of the Organization authorized in writing by the Director General may, with the consent in writing of the Public Prosecutor, at any time before a charge is being instituted, compound any offence prescribed as an offence which may be compounded by making a written offer to the person reasonably suspected of having committed the offence to compound the offence upon payment to the Director General of a sum of money not exceeding fifty per centum of the amount of the maximum fine to which the person would have been liable t

78 PART X GENERAL-78. Duty to keep returns, particulars, etc .

(1) Every employer shall keep or maintain any return, particulars, register book or record pertaining to each employee.

(2) The Employment Services Officer may request the employer to submit any return, particulars, register book or record referred to in subsection (1).

(3) Any person who contravenes subsection (1) or fails to comply with the request under subsection (2) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

79 PART X GENERAL-79. Appointment of collection agent.

The Organization may appoint such number of collection agents for the purpose of recovery of any debt due to the Organization.

80 PART X GENERAL-80. Engagement of auditors, actuaries, etc .

The Organization may, subject to such terms and conditions, engage such auditors, actuaries, technical advisers, bankers, stockbrokers, surveyors, consultants or any other persons as the Organization deems fit to assist the Organization in the performance of its functions.

81 PART X GENERAL-81. Public servant.

The Director General, Deputy Directors General, all members of the Board, the Committee or committee established under section 9, Employment Services Officers and officers and servants of the Organization, while discharging their duties under this Act or any regulations made under this Act, shall be deemed to be a public servant within the meaning of the Penal Code [Act 574] .

82 PART X GENERAL-82. Power of Organization to establish or take over companies.

(1) The Organization may, with the approval of the Minister and the Minister of Finance, establish or take over any company under the Companies Act 2016 [Act 777] to carry out, administer, conduct and manage any project, joint venture, privatization programme, scheme, enterprise or any other matter which has been planned or undertaken by the Organization for the purposes of the System.

(2) The Organization may give directions to the company referred to in subsection (1) on matters relating to the administration, finance and operation of the company which are consistent with the provisions of this Act, and such company shall give effect to the directions.

83 PART X GENERAL-83. Power to exempt.

The Minister may, by order published in the Gazette and subject to such conditions specified in the order, exempt-

(a) any industry or class of industries; or

(b) any employer or employee, or class of employers or employees,

from any of the provisions of this Act or any regulations made under this Act.

84 PART X GENERAL-84. Power to amend schedule.

The Minister may, by order published in the Gazette , amend the First Schedule.

85 PART X GENERAL-85. Power to make regulations.

(1) The Minister may make such regulations as may be expedient or necessary for the better carrying out of the provisions of this Act.

(2) Without prejudice to the generality of subsection (1), regulations may be made for all or any of the following purposes:

(a) all matters relating to contributions and benefits including the manner in which the contribution or benefit to be calculated, and the procedure for making a claim for benefits;

(b) the procedure for the determination of loss of employment and contributions qualifying conditions;

(c) the conditions which shall be complied with by an insured person who is receiving any benefit;

(d) all matters relating to the training of insured persons;

(e) all matters relating to training providers including the duties of the training providers, procedure for making a claim for training fees and documents

86 PART X GENERAL-86. Disposal of documents after more than three years.

(1) The Director General may authorize any paper-based document belonging to the Organization to be copied onto an electronic medium by such means so as to ensure that the exact image of that document is capable of being viewed, reproduced and copied.

(2) Where a paper-based document has been copied in accordance with subsection (1), the Director General may authorize the disposal of the paper-based document after the expiry of a period of three years from the making of such electronic copy.

(3) A copy of the paper-based document kept on an electronic medium in accordance with subsection (1) shall be admissible as evidence of any fact stated therein in accordance with section 90A of the Evidence Act 1950 [Act 56] .

87 PART X GENERAL-87. Recommendations to review System.

(1) The Board may, when substantial changes in the general level of earnings resulting from substantial changes in the cost of living, examine the situation on the basis of an actuarial valuation made and make recommendations to the Minister to review the System under this Act.

(2) The recommendations of the Board referred to in subsection (1)-

(a) shall be accompanied by the actuarial report;

(b) shall take into account the social policy of the Government; and

(c) may include-

(i) a proposal for a new rate of contributions;

(ii) a proposal for changes in the rates of the job search allowance, early re-employment allowance, reduced income allowance and training allowance and the amount of training fee; and

(iii) a proposal for new types of benefits.

88 PART X GENERAL-88. Offences by body corporate, etc .

(1) If an employer who is a body corporate, partnership or society commits an offence under this Act-

(a) in the case of a body corporate, any person who at the time of the commission of the offence was a director, manager, secretary or other similar officer of the body corporate;

(b) in the case of a partnership, every partner in the partnership at the time of the commission of the offence; or

(c) in the case of a society, every office-bearer of the society at the time of the commission of the offence, may be charged severally or jointly in the same proceedings with the body corporate, partnership or society.

(2) If the body corporate, partnership or society is found to have committed the offence, the director, manager, secretary or other similar officer of the body corporate, the partner in the partnership or the office-bearer of the society referred to in subsectio

89 PART X GENERAL-89. Organization may deal with authorized person.

(1) In all matters pertaining to benefits under this Act, the Organization may deal directly with the insured person or an official of a registered trade union authorized in writing by such insured person or a legal practitioner representing such insured person.

(2) The Organization may refuse to entertain any representation made by any other person.

90 PART X GENERAL-90. Electronic submission of documents.

(1) Subject to subsection (2), the Organization may allow any returns, particulars, records, notices, reports, registers or other documents required to be submitted or furnished under this Act or regulations made under this Act by an electronic medium or by way of an electronic transmission.

(2) The conditions and specifications under which the returns, particulars, records, notices, reports, registers or other documents referred to in subsection (1) are to be submitted or furnished shall be as determined by the Organization.

(3) The returns, particulars, records, notices, reports, registers or other documents referred to in subsection (1) shall be deemed to have been submitted or furnished by a person to the Organization on the date the acknowledgment of receipt of such returns, particulars, records, notices, reports, registers or other documents are transmitted electronically by the Organization to the person.

(4) The acknowle