Cabinet approves removal of penalty clause in EIS amendment

Human resources minister Steven Sim said the decision follows concerns raised by industry stakeholders.

Human resources minister Steven Sim said Perkeso will refine Section 45F of the Employment Insurance System (Amendment) Bill 2025, including removing the penalty provision.

PETALING JAYA:

 The Cabinet has agreed that the penalty provision under Section 45F(4) of the Employment Insurance System (Amendment) Bill 2025 be removed.

Human resources minister Steven Sim said the Cabinet’s decision follows concerns raised by industry stakeholders about the amendment, which requires employers to notify the national recruitment portal MYFutureJobs of all vacancies available in their businesses or face a RM10,000 fine.

Sim said the tabling of the bill at the ongoing Dewan Negara meeting will be postponed to allow Perkeso to refine Section 45F, including removing the penalty provision in that section.

“The government firmly believes that any policy must be aligned with the realities of the industry while ensuring benefits for all parties,” he said in a statement.

“The proposed improvements to Section 45F will be brought to engagement sessions with industry stakeholders, including employees and employers, before the bill is reintroduced in Parliament next year.”

Last week, the Dewan Rakyat passed amendments to the EIS Act aimed at expanding support for contributors to Perkeso and strengthening the governance of the scheme.

Perkeso has since clarified that it will impose a moratorium of up to two years before fully enforcing the new requirements, giving employers, especially SMEs, adequate time to adapt. - FMT