The Human Resources Ministry (MOHR) will scrap the penalty provision under Section 45F of the Employment Insurance System (Amendment) Bill 2025, following strong objections from industry players.
The clause currently imposes a RM10,000 fine on employers who fail to notify the Social Security Organisation (PERKESO) of job vacancies or new positions within seven days.
Human Resources Minister Steven Sim said the government is committed to ensuring that all labour-related policies remain practical for industry while delivering fair outcomes.
He said the matter was raised at the Dec 10 Cabinet meeting, which agreed to abolish Section 45F(4).
Following the decision, the bill’s tabling in the Dewan Negara this month will be deferred to allow PERKESO to refine the section, including the removal of the penalty clause.
Sim added that proposed improvements to Section 45F will be presented to workers and employers through stakeholder engagement sessions before the bill is re-tabled in Parliament next year.
