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July 15, 2020

Bosses Who Abuse Wage Subsidy Scheme Will Be Penalised

EMPLOYERS who fail to channel the wage subsidy to their employees will face the music, says Datuk Seri M. Saravanan.

The Human Resources Minister said they had received complaints that some bosses had failed to pay the subsidy received from the government to their workers.

“The names of approved applicants as well as the payment made to these employers are displayed on the Social Security Organisation (Socso) website.

“This is to enable the workers to cross-check and lodge a complaint if they are unhappy with their bosses.

“If we receive a complaint, the ministry will investigate and take action via Socso, ” he said during the question-and-answer session yesterday.

Saravanan was replying to a question from M. Kulasegaran (PH-Ipoh Barat) who asked about the actions that could be taken against employers who failed to pay their workers despite applying for the wage subsidy programme.

Among the actions were blacklisting the employer, stopping the next payment, conducting verification of complaints and lodging a police report for abusing the programme, the minister said.

The wage subsidy programme was introduced to help employers, who are economically impacted due to Covid-19, and to make sure they could continue operating while preventing the workers from losing their jobs.

Saravanan said that so far, the government had allocated RM13.8bil for the programme. He said that up to June 30, almost 38% or RM5.2bil of the allocation for the programme had been distributed to eligible employers by Socso.

“The allocation involved 319,000 employers for 2.6 million workers, ” he said, adding that the biggest sector that received the allocation was from the service industry, with 92,000 or 29% of the total applications.

 

 

source: https://www.thestar.com.my/news/nation/2020/07/15/bosses-who-abuse-wage-subsidy-scheme-will-be-penalised

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