Kuala lumpur: The Employment Insurance System (Amendment) Bill 2025 was retabled in the Dewan Rakyat today to consider changes made by the Dewan Negara to the proposed progressive penalty structure.

According to BERNAMA News Agency, Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan stated that the motion was tabled after considering concerns and feedback from the micro, small and medium enterprises (MSME) community. The Bill, initially passed by the Dewan Rakyat in December last year, proposed a maximum fine of RM10,000 for employers failing to notify job vacancies as required under Section 45F of the Employment Insurance System Act 2017 (Act 800).

However, Khairul Firdaus acknowledged that the penalty was deemed too high for a first-time administrative offence, potentially imposing a significant financial burden on employers. 'The Cabinet agreed on Feb 27 to amend the Bill by introducing a more progressive penalty structure based on the frequency of the offence committed by the employer. Following that, the Dewan Negara passed the Bill with amendments to Clause 11 involving Subsection 45F(4) on March 12,' he said when tabling the motion.

Under the revised penalty structure approved by the Dewan Negara, employers may face fines of up to RM1,000 for a first offence, RM3,000 for a second offence, and up to RM5,000 for a third or subsequent offence. The penalty applies to employers who fail to notify the Social Security Organisation (PERKESO) in writing of job vacancies or newly created positions before recruitment begins.

Khairul Firdaus emphasized that the balanced approach would encourage voluntary compliance without placing an undue burden on the business community. At the same time, he assured the House that the technical amendment would not affect the Bill's original objective of strengthening labour market reporting.

'The amendment does not alter the original intent of the provision, which is to improve the effectiveness of employment services and ensure that more accurate and comprehensive labour market information is made available,' he said.