Malaysia legislation
Section 52
Section 52
(2)
Where the Minister amends the First Schedule under section 74
by deleting any paragraph thereof, any employer or group of employers who before the date on which the order comes into force has established a provident fund or other scheme for the benefit of all or of a group of his or their employees of the description specified in that paragraph shall, within such period as the Board may in its discretion allow, furnish the Board with such particulars of such provident fund or other scheme as the Board may prescribe or in any particular case require, and if after examining such particulars the Board is satisfied that such provident fund or other scheme as amended if necessary in such manner as the Board may require provides for an employee benefits not less advantageous to him than the benefits which are provided for an employee by the Fund, the Board may, subject to such conditions as it may impose, declare such provident fund or other scheme to be an approved fund.
(3)
Where an employee for any reason whatsoever changes employment to an employment in respect of which an approved fund exists, contributions in respect of the employee shall cease to be payable to the Fund and the amount standing to the credit of such employee shall remain in the Fund.
(4)
Where an employee, who is in an employment in respect of which an approved fund has been established, is precluded by the
60 Laws of Malaysia rules of such approved fund from contributing thereto during a specified period of probation, any sum standing to such employee’s credit in the Fund which represents contributions to the Fund both by the employer and the employee since the date on which such employment commenced, together with any dividend thereon, shall remain in the Fund.
(5)
Where—
(a)
an employer who is one of a group of employers by whom an approved fund has been established ceases to participate in such approved fund; or
(b)
an employee—
(i)
leaves an employment in respect of which he was a contributor to an approved fund; or
(ii)
ceases to contribute to an approved fund, in circumstances other than those set out in paragraph 54(1)(a), (b) or (c), the amount standing to each employee’s or to such employees’ credit in such approved fund that represents contributions to such approved fund both by the employer and the employee since 1 July 1952 together with any dividend thereon, shall, notwithstanding anything to the contrary contained in any other written law, be transferred to the Fund, and the Board shall cause to be credited to each such employee or such employees such amount in such manner as the Board shall direct and such amount shall be transferred within one month of the employer ceasing to participate in such approved fund or of the employee leaving the employment or ceasing to contribute, as the case may be, or within such further period as the Board may in any particular case allow:
Provided that where an employee—
(a)
transfers from employment in Malaysia under an employer by whom an approved fund has been established to employment outside Malaysia under the same employer; or
Employees Provident Fund 61
(b)
transfers from employment under an employer who is one of a group of employers by whom an approved fund has been established to employment under another employer who is one of the same group, and in either case, where such transfer is permitted by the rules of such approved fund to continue to contribute thereto on the same terms and conditions as if such transfer had not taken place, such employee, so long as he continues so to contribute, shall not for the purposes of subparagraph (b)(i) of this subsection be deemed to have left an employment in respect of which he was a contributor to an approved fund:
Provided further that where in accordance with the rules of such approved fund the amount standing to the credit of any employee consists in whole or in part of a policy of life assurance, such policy shall not be transferred to the Fund, but shall be dealt with in accordance with such rules.
(6)
Where an approved fund is wound up, the amount standing to each employee’s or to such employees’ credit in such approved fund that represents contributions to such approved fund both by the employer and the employee since 1 July 1952 together with any dividend thereon, shall notwithstanding anything to the contrary contained in any other written law, be transferred to the
Fund, and the Board shall cause to be credited to each employee or such employees such amount in such manner as the Board shall direct.
(b)
The Board may, if it considers desirable in the interests of employees so to do, accept in their entirety the assets and liabilities of such approved fund at such date as is agreed and where the assets of such approved fund shall not be sufficient to meet its liabilities, the amount to be credited to such employee or employees under paragraph (a) shall be reduced in such proportion as the
Board may determine:
Provided that where in accordance with the rules of such approved fund the amount standing to the credit of any
62 Laws of Malaysia employee consists in whole or in part of a policy of life assurance such policy shall not be transferred to the Fund, but shall be dealt with in accordance with such rules.
(7)
An employer who has established an approved fund shall—
(a)
furnish the Board with such accounts as the Board may require in respect of such approved fund duly certified by a person who has been approved as a company auditor under section 8 of the *Companies Act 1965;
(b)
inform the Board of any proposed amendment to the rules of such approved fund and shall not effect any such amendment except with the written approval of the Board;
and
(c)
furnish the Board with such particulars of those employees contributing to such approved fund in such manner as may be prescribed by the Board.
(8)
The Board may, if not satisfied with the management of any approved fund, revoke any declaration made under this section, and upon such revocation, subsection (5) of this section shall apply as they would apply if such fund were wound up.
(9)
An employer in respect of any approved fund shall be subject to the same offences and penalties in respect of any deductions or contributions made under the rules of an approved fund as are provided by this Act in respect of deductions and contributions relating to the
Fund.
(10)
Notwithstanding anything to the contrary in the rules of an approved fund, the amount standing to an employee’s credit therein together with any dividend thereon may be withdrawn in any of the circumstances set out in paragraph 54(1)(a), (b) or (c).
(11)
Notwithstanding anything to the contrary in the rules of an approved fund, any employer may on application by an employee who
*NOTE─The Companies Act 1965 [Act 125] has been repealed by the Companies Act 2016
[Act 777] which comes into operation on 31 January 2017–see subsection 620(1) of Act 777.
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has attained the age of fifty years authorize not more than one withdrawal from such approved fund a sum representing one-third of the amount standing to the credit of such employee and an employee in respect of whom an authority for withdrawal has been given under this subsection shall notwithstanding such withdrawal continue to be treated as a contributor to such approved fund.
(12)
When an employee withdraws under subsection (10) any amount standing to his credit in an approved fund, he shall not thereafter be treated as an employee, notwithstanding that, but for this subsection, he would be an employee, for the purpose of this Act.
(13)
Any employer who fails to comply with any requirement or direction of the Board under this section, or with any provision of subsection (7), shall be guilty of an offence.
(14)
Where in the circumstances mentioned in subsections (5) and (8), any amount of contributions paid since 1 July 1952 is transferred to the Fund, the employer and employee concerned may, by mutual agreement, elect to transfer to the Fund all such amount standing to the credit of the employee in an approved fund as represents the contributions paid to such fund before 1 July 1952. Notice of such election shall be given to the Board in such manner as may be prescribed by the Board, and if the Board approves such transfer, the employee shall be credited with the amount so transferred to the
Fund.
(15)
Section 51 shall apply in respect of an approved fund in like manner as it applies in respect of the Fund.
(16)
For the purpose of this section the expression “an employer who has established an approved fund” includes an employer for the benefit of whose employees an approved fund has been established.
(17)
Nothing in subsections (7) and (13) shall apply to an approved fund expressly established by or under any written law.
(18)
Any expenses incurred by the Board in enforcing the obligations of approved funds under this Act shall be reimbursed to the
Board from the funds of such funds on the basis of membership of such funds.
64 Laws of Malaysia
Winding up of approved fund