Malaysia legislation

Section 3

of *EMPLOYMENT INSURANCE SYSTEM ACT 2017

Section 3

In this Act, unless the context otherwise requires—

“required number of monthly contributions” means the number of monthly contributions paid in respect of an insured person irrespective of whether the contributions are made in consecutive months or not as specified in the Fourth Schedule;

“contribution” means the sum of money payable to the Organization by an employer in respect of an insured person and includes any amount payable by or on behalf of the insured person in accordance with this Act;

“early re-employment allowance” means an incentive paid in lump sum to an insured person for accepting an offer of employment from any employer and commencing the employment within the waiting period or the period of receiving job search allowance at the rate as specified in the Third Schedule;

“training allowance” means a monthly payment to an insured person for a period of not more than six months for attending any training in

Malaysia provided by a training provider;

“job search allowance” means a monthly payment for a period of three to six consecutive months to assist an insured person who has lost his employment during the period he is seeking for an employment;

“reduced income allowance” means a lump sum payment to assist an insured person who has two or more employments and has lost one or more of his employments;

“benefit” means a job search allowance, an early re-employment allowance, a reduced income allowance, a training allowance and a training fee;

“wages” means all remunerations payable in money by an employer to an employee including any payment in respect of leave, holidays, overtime and extra work on holidays but does not include—

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(a)

any contributions payable by the employer to any pension fund, social security fund or provident fund;

(b)

any traveling allowance or the value of any traveling concession;

(c)

any sum paid to the employee to pay for special expenses incurred as a result of his employment;

(d)

any gratuity payable on discharge or retirement;

(e)

any annual bonus;

(f)

any benefit under any other written law administered by the Organization; and

(g)

any other remuneration as prescribed;

“Committee” means the Employment Insurance Committee established under section 8;

“Appellate Board” means the Social Security Appellate Board constituted under section 83 of the Employees’ Social Security

Act 1969 [Act 4];

“Director General” means the Director General of the Organization appointed under subsection 59(1) of the Employees’ Social Security

Act 1969;

“Fund” means the Employment Insurance Fund established under section 46;

“Board” means the Social Security Organization Board established under section 59B of the Employees’ Social Security Act 1969;

“employer” means the owner of an industry or the person with whom an employee has entered into a contract of service or apprenticeship and includes—

12 Laws of Malaysia

(a)

a manager, an agent or a person responsible for the payment of wages to the employee; and

(b)

the legal representative of the owner of the industry or such person;

“Minister” means the Minister charged with the responsibility for human resources;

“insured person” means an employee who is registered under section 16 or deemed to have been registered under section 17 in respect of whom contributions are or have been paid, or are payable;

“dependant” means a widow or widower, a child, a parent, a sibling under twenty-one years old or a grandparent of the deceased insured person;

“officers and servants of the Organization” means the officers and servants of the Organization appointed under section 59L of the

Employees’ Social Security Act 1969;

“Employment Services Officer” means an officer appointed under section 67 and includes an Inspector;

“employee” means a person who is employed for wages under a contract of service or apprenticeship with an employer, whether the contract is expressed or implied or is oral or in writing, on or in connection with the work of an industry to which this Act applies;

“training provider” means any person who has a training facility to carry out trainings for the purposes of re-employment placement programme;

“Inspector” means an Inspector appointed under section 12 of the

Employees’ Social Security Act 1969 and includes the Director

General and every Deputy Director General;

“Organization” has the meaning assigned to it in the Employees’

Social Security Act 1969;

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“industry” includes any business, trade, undertaking, manufacture or calling of employers, and includes any calling, services, handicraft or industrial occupation of employees;

“re-employment placement programme” means a programme managed by the Organization for insured persons for the purposes of re-employment of the insured persons;

“System” means the Employment Insurance System established under section 4;

“contributions qualifying conditions” means the required number of monthly contributions over an eligibility period as specified in the

Fourth Schedule;

“eligibility period” means a period comprising a certain number of consecutive months immediately preceding the loss of employment in respect of an insured person as specified in the Fourth Schedule;

“waiting period” means the period of seven days from the date of the approval of a claim for benefits under section 33;

“Deputy Director General” means the Deputy Director General of the Organization appointed under subsection 59(2) of the

Employees’ Social Security Act 1969 including those appointed in accordance with subsection 5(3);

“minimum retirement age” has the meaning assigned to it in the Minimum Retirement Age Act 2012 [Act 753].

Section 3 — EMPLOYMENT INSURANCE SYSTEM ACT 2017 | mylaw.my