What is the new progressive penalty structure for employers failing to report vacancies?

Question

Accepted Answer

New Progressive Penalties Introduced for Unreported Job Vacancies

The Employment Insurance System (Amendment) Bill 2025 has introduced a tiered penalty system for employers who fail to notify the Social Security Organisation (Socso) of job vacancies. This new structure aims to encourage compliance through escalating fines for repeat offences. The amendments were approved by the Dewan Rakyat, reflecting a move towards a more organised employment ecosystem with an emphasis on education and compliance.
First Offence Penalty Set at RM1,000

For employers committing their first offence by not reporting a job vacancy to Socso, a fixed penalty of RM1,000 will be imposed. This initial fine is part of a progressive structure designed to provide a clear financial consequence for non-compliance from the outset.
Second Offence Incurs RM3,000 Fine

Should an employer fail to report vacancies for a second time, the penalty increases significantly to RM3,000. This escalation is intended to reinforce the importance of adhering to reporting requirements and to deter subsequent violations.
Subsequent Offences Face Fines Up to RM5,000

For any third or subsequent failure to report job vacancies, employers could face penalties of up to RM5,000. This maximum fine represents a reduction from an earlier proposal of RM10,000, a change made after considering feedback from employers during engagement sessions.
Amendments Emphasise Education and Compliance

The amendments to the Employment Insurance System Bill 2025 are underpinned by a strategy that prioritises educating employers and fostering compliance. Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan highlighted that guidance and engagement sessions will continue, with employers first receiving compliance notices to allow for corrective actions before any compounds are issued. This approach aims to balance enforcement with the practical realities faced by businesses.

Reading history

Hide →

This history is cleared when the page is closed.

What is the new progressive penalty structure for employers failing to report vacancies?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends