MASTERING THE EMPLOYMENT, ACT 1955, EPF ACT 1991, SOCSO ACT 1969 & EIS 2018 WITH LATEST AMENDMENTS

INTRODUCTION

• What Is the Purpose of These Laws?
• The Employment Act 1955, Labour Ordinance 2004 (Sabah), Labour Ordinance 2005 (Sarawak) specify the obligations of employer to provide certain benefits to employees.
• The latest Minimum Wages Order specifies the latest revised minimum wages that should be paid. This is revised every 2 years.
• The Minimum Retirement Age Act 2012 sets the minimum retirement age.
• Part-timers are entitled to certain benefits under the Part-timers (Employment) Rules 2010.
• The EPF Act 1991 is a retirement scheme for employees.
• The SOCSO Act 1969 is an insurance scheme for Malaysian employees for employment injury or invalidity.
• The EIS (2018) (Employment Insurance System) is an insurance scheme for all retrenched employees.

SESSION OBJECTIVES

• Identifying who is covered under the Employment Act 1955; EPF Act 1991 & SOCSO Act 1961 & EIS (2018)
• Administering the benefits of annual leave, sick leave, maternity leave, PH, rest days
• Calculating OT on normal work days, rest days and PH
• Calculating retrenchment benefit
• Contributing correctly to EPF, SOCSO & EIS
• Making claims to benefits under EPF, SOCSO & EIS
• Calculating payment for OT, rest day and PH for PART- TIMERS
• Determining what minimum wages should be paid under the latest Minimum Wages Order

SESSION HIGHLIGHTS

Employment Contracts

• What is the Employment Act?
• Who is covered under the Act?
• Types of contracts
• Are oral contracts legal? When must you have a written contract?

Discussion Session

• General penalties
• Normal Hours and OT
• Normal working hours & days
• Overtime Rates
• Max hours of work / Max hours of OT
• Breaks during normal work hours and OT
• Special Protection for Women Employees
• Working hours and days/ Minimum rest hours per day
• What is the difference between compulsory and non-compulsory PH?
• No. of days of compulsory and non-compulsory PH
• Payment rates for work during normal hours and OT on PH

EPF: CONTRIBUTIONS & DEDUCTIONS

EPF: BENEFITS & CLAIMS

SOCSO: CONTRIBUTIONS & DEDUCTIONS

Employment Insurance System (2018)

INDUSTRIAL LAW & JTK COMPLIANCE

Highly Interactive Workshop for Employers to Know and Understand their Essential Rights. It is also to have practical insights on how to handle Human Resource in particular Employee Relations situations. This programmed will highlight the Rights of the Employers from Common Law to Industrial Law. However the critical part of this training is to ensure the Employers stay within the parameters of the Law.

In other words to understand the legalities and implications of their rights and to ensure that they “ STAY WITHIN THEIR RIGHTS “ Otherwise they could flout the law and this could result in serious implications and cause disputes with employees at the Labor Department, Industrial Relations Department and the Industrial Court. Besides the financial implications it could also dampen the morale of employees and damage the reputation of the Employer

SESSION OBJECTIVES

1. Make employers aware of their inherent rights as provided under the:

• Common Law
• Labour Laws
• Industrial Laws
• Industrial Court Precedents and Awards (case studies)

2. Be also aware of the rights of employees so as not to commit acts of unfair labour practices.

3. Be able to act with conviction and confidence when unduly threatened by employees and other troublemakers.

4. Ensure compliance with the Employment contracts and act in good faith to create a harmonious work environment

5. Protection against illegal and unlawful actions by employees.

6. Avoid unnecessary and costly appearances at the Labour Court and Industrial Court over labour and dismissal disputes and issued.

7. Understand and appreciate the legal remedies available to employers in exercising their rights over employee particularly with regards to discipline and poor performance issues.

LHDN | INTRODUCTION TO E-INVOICING

LHDN will implement an e-invoice policy starting in 2024. Companies with an annual turnover exceeding RM 100 million will be the first to adopt this compulsory measure. The e- invoice system aims to enhance business efficiency and prevent tax leakage. The government will study implementations in other countries to ensure an effective rollout.

An "e-Invoice" refers to the electronic method of recording transactions. With full-scale implementation, physical receipts will no longer be needed, and all transaction records will be backed up in the LHDN database. During tax filing, eligible expenses will be automatically reconciled in the system, eliminating manual entry for taxpayers.

According to Budget 2024, the Prime Minister proposed that the first phase of mandatory e- invoicing will begin in August 2024, with the goal of full implementation by July 2025, which is 18 months ahead of previous projections. The rollout will be conducted in stages to ensure a smooth transition.

Highlights

The Step-by-Step Benefit of the Experiential Workshop Session on the PCB Monthly Tax Deduction.

The workshop also demonstrates how the MTD/PCB is computed step-by-step using the manual formula method so that you are able to explain to other employees the process; and answer the golden question: ‘why does MTD / PCB vary from month to month?’

• Using the schedule and formula methods to compute MTD/ PCB
• Compulsory and optional deductions
• Rebates after tax.
• Deductions for previous years

TAX TREATMENT FOR GRATUITY AND COMPENSATION PAYMENTS

• Definition of gratuity and compensation
• Conditions for Tax-free gratuity and compensation
• Rate of tax for qualified exemptions.

WITHHOLDING TAX (LHDN)

BENEFITS-IN-KIND AND PERKS & OTHERS

PREPARING THE EA FORM & OTHER DOCUMENTATION