Offences and penalties
1. Liability of an employer
|41(1)||An employer who fails to register with the Board within 7 days from the date he becomes liable to contribute.||Shall be liable to a imprisonment term not exceeding 3 years or to a fine not exceeding RM10,000 or both.|
|41(3)||An employer who fails to notify the Board within 30 days from the date he ceases liability to contribute.||Shall be liable to a imprisonment term not exceeding 6 months or to a fine not exceeding RM2,000 or both.|
|41(1)||An employer who fails to furnish the statement of wages to his employee.||Shall be liable to a imprisonment term not exceeding 6 months or to a fine not exceeding RM2,000 or both.|
|41(2)||Any employer who fails to contribute to the EPF Board on behalf of each of his employee. The contribution shall be remitted on or before the 15th day of the month.||Shall be liable to a imprisonment term not exceeding 3 years or to a fine not exceeding RM10,000 or both.|
|41(1)||Any employer who deducts or attempts to deduct from the wages or remuneration of any employee the whole or any part of the employer’s share of contribution.||Shall be liable to a imprisonment term not exceeding 6 years or to a fine not exceeding RM20,000 or both.|
|41(3)||Any employer who deducts the employee’s share of contributions from the wages of an employee and fails to pay the total sum deducted or any part of the sum to EPF.||Shall be liable to a imprisonment term not exceeding 6 years or to a fine not exceeding RM20,000 or both.|
|59(a)||Any person who makes orally or in writing, or signs any declaration, return, certificate or document which is untrue or incorrect.||Shall be liable to a imprisonment term notRM10,000 or both.|
Table 5.6 Liability of an employer
2. Liiability of a contributory member
Under Section 59 EPF Act 1991, fraudulent withdrawal or attempted fraudulent withdrawal is punishable with maximum jail sentence of three years or a imposition of a fine at RM10,000, or both. Fraudulent withdrawals involve the submission of falsified documents by members to facilitate the approval of withdrawal from their own EPF account. Convicted members who return the amount of money withdrawn within six months from the conviction date, shall only be allowed to apply for the same withdrawal after two years from the date the amount is returned. Those who fail to do so will forever lose their right to
make that particular withdrawal.
To date, six members of the Employees Provident Fund (EPF) were convicted by the courts between October and December 2011 (Q4 2011) under Section 59, EPF Act 1991 for their involvement in fraudulent withdrawals.
Withdrawal of savings to buy or build a house must be only be used for that purpose only. Otherwise, contributor is are required to return the amount withdrawn to the EPF within six months from the date of withdrawal. Failure to do so is an offence punishable under Section 58A of the EPF Act 1991. If convicted, the contributor can be imprisoned for up to six months or fined up to RM2,000 or both.
Any attempts to withdraw or have withdrawn savings fraudulently by fraud documents , would result to an offence under Section 59 of the EPF Act 1991. The penalty under this Section is imprisonment for a term of up to three years or a fine up to RM10,000 or both.
Similarly, a party collaborating with the contributor to withdraw savings of EPF Members fraudulently shall also be committing an offence under Section 61 of the EPF Act 1991.