Over 7,000 Employers Failed to Register with HRDF

According to The Edge Markets, over 7,000 Malaysian employers are in the risk of being fined for failing to register with the Human Resources Development Fund (HRDF), as required under the Pembangunan Sumber Manusia Bhd (PSMB) Act 2001.

HRDF said in a statement that this is based on the investigations by the Regulatory and Enforcement Department of the Ministry of Human Resources. Earlier in 2018, M. Kula Segaran, Human Resources Minister, reminded all liable employers to sign up with HRDF.

He said "According to the law, they have already committed the offence. But going to court will be our last resort. So, employers who might have overlooked registering with the HRDF are advised to do so.”

The HR minister urged all liable employers to sign up with HRDF. Pic credit: NST.

Lately, the HRDF has started to take action against irresponsible employers who have avoided registering with the fund. Employers who avoid from registering with HRDF can face a fine of up to RM10,000 or a jail term of up to one year, or both, if they are convicted.

As of 2 November 2018, HRDF has found almost 17,000 employers who are potentially eligible to register with the fund. The HRDF pressed all employers to view the fund as a way to achieve a shared prosperity for employers and employers in the quest of a developed Malaysia.

HRDF hopes that every Malaysian employee understands that the key to keeping or re-gaining a good job is through continuous learning. It said “Learning and development could bring considerable benefits both to the employee and the business in which they are employed.”

Employers from 63 subsectors from quarrying, manufacturing, services and mining sectors are required to pay a Human Resources Development (HRD) levy to bolster the training and development of their Malaysian employees, trainees and apprentices.

Recent HRDF updates

Earlier in December 2018, HRDF announced that it will be conducting on-site inspections to veryfy th eamount of monthly HRD levy paid are in accordance to any provision or/and regulation of the PSMB Act 2001.

The HRDF is expected to train about 1.2 million Malaysian workers in 2019, utilising the RM900 million HRD levy that the fund will collect from registered employers.

Back in 15 November 2018, the Malaysian government discontinued a pool under its human capital development programme which is made up of 30% of contributions from employers registered with the HRDF.

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