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 Contract Job do not hv EPF & SOCSO?, Is that valid?

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TSrexis
post Apr 8 2009, 09:22 AM, updated 17y ago

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As mentioned in the title, please enlighten me. Thanks.

The company I am currently with is unwilling to confirm me, and hence they offered me a 1 month contract job.

Most of the things is same, just no EPF and SOCSO.

I has a feeling of either one of us will sack each other anytime.
TSrexis
post Apr 8 2009, 10:32 AM

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Just appreciate if anyone can share if they took/encountered any EPFless and SOCSOless contract offer.

QUOTE(cmk96 @ Apr 8 2009, 10:23 AM)
u should ask EPF to confirm. yawn.gif
*
Thanks for your golden advice. It is very helpful of you and you pwned every one else here.

QUOTE(ahjames @ Apr 8 2009, 10:25 AM)
unless u r being paid as a contractor/vendor... is that the case or are you on their payroll?
*
I receive payslip monthly. But now they decided to end my probation, and start with a service of contract thingy.

No, I am not a 3rd party contractor or vendor, I sit in their office and I punch in every morning.

QUOTE(rognales @ Apr 8 2009, 09:35 AM)
In general, all payments which are meant to be salary or wage are accountable in your monthly contribution amount calculation. These include:

    *
      Salary/Wage;
    * Payment to replace service termination notice;
    * Payment for unutilised leaves;
    * Bonuses;
    * Allowances;
    * Commision;
    * Accrued salary/wage;
    * Salary/wage for maternity leaves;
    * Salary/wage for study leaves;
    * Salary/wage for half-pay leaves;
    * Directors salary/wage; and
    * Other payments stipulated under contracts of services/employment or vice versa.

*
Thanks rognales for the accurate reference.

This post has been edited by rexis: Apr 8 2009, 10:39 AM
TSrexis
post Apr 8 2009, 10:52 AM

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QUOTE(ahjames @ Apr 8 2009, 10:39 AM)
i think they are treating u as a freelancer and u are being paid not as employee but as a vendor... that why no epf and sosco
*
Does a freelancer has job title?

QUOTE(cmk96 @ Apr 8 2009, 10:46 AM)
I just wan u to get the fact straight rather than asking for opinion.... u can call up EPF or send them an email...i know ppl like to speak based on opinion coz its easy... but only facts that matters. EPF can clear all ur doubt fast!
*
Thanks for your opinion. I just like to find out if this is a common practice.

Its sort of a new thing to me that a contractor do not hv EPF. So I am just trying to find out if they are making me a space goat or I am just not well informed about Malaysia Law

Called EPF anyway.
TSrexis
post Apr 8 2009, 12:13 PM

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QUOTE(seantang @ Apr 8 2009, 11:46 AM)
A contractor doesn't always mean contract employee. It can be contract service provider or supplier as well.

I can contract someone to come mop the floor and wash the toilet everyday. That doesn't make that person my 'employee'. Its makes them a service provider like DHL or the auditors or my regular taxi driver. Contractors can technically be self-employed.
*
This is stated in the KWSP website:
* Other payments stipulated under contracts of services/employment or vice versa.

And the officer I talked to in KWSP say that any contract that against Malaysia Law is not legal, even if you signed it and it say no EPF.

What does this mean?
TSrexis
post Apr 8 2009, 03:20 PM

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QUOTE(seantang @ Apr 8 2009, 02:37 PM)
So, in your opinion, anyone whose work:

(a) is not task based (what does this mean? At the end of the day, work is simply a series of tasks, no?)
(b) is tied to company policies or resources
© reports to a superior in the company
(d) is somehow a 'member' of the organisation (what does this mean anyway?)

- is defined as an employee?
*
Thats the thing, if say only employee can deserve it, the next thing I will see is the employer digging into the legal dictionary to define what is employee. I have in no position to deal with that kind of legal knowledge or argument.

All I know, I work for you, and you pay me salary and EPF. It is not up to what the contract say it if it is about the law, nor the contract can state that you can burn down your clients' houses if they make late payment and you can go and burn people's house.

This post has been edited by rexis: Apr 8 2009, 03:22 PM
TSrexis
post Apr 9 2009, 09:39 AM

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And I found this:

QUOTE
v “ Employee” under the Act means:
Ø any person whose wages does not exceed RM1500.00 per month under a contract of service with an employer.

Ø any person who irrespective of the wages he earns in a month has entered into a contract of service with an employer and disengaged in:
- manual labour;
- engaged in the operation of mechanically propelled vehicles.

Ø one who supervises and oversees employees in manual labour.

Ø any person engaged in any capacity, in any vessel registered in Malaysia with certain exceptions.


QUOTE(sukhoi35mk @ Apr 8 2009, 03:50 PM)
it is depend to the contract term and condition. In my company, all contract staff must register their own self proprietary company. In this case, my company is dealing with registered self propreitary companies instead of individual contract staff and we are paying the consultancy fee instead of salary to contract staff. In this case, we do not pay for EPF, SOCSO, no MC, no AL.....
*
In this case, the proprietary company need to bear the EPF, etc cost.

This post has been edited by rexis: Apr 9 2009, 09:52 AM
TSrexis
post Apr 9 2009, 01:31 PM

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Reducing basic benefit is certainly not something encouraging, sometimes, it can be translated into tactic to cut staff.

I was on probation, and due to the reason I mentioned on another thread, I am demoted to contract staff.

QUOTE(chilicandy @ Apr 9 2009, 09:46 AM)
If i am not mistaken, a company has the right not to contribute to EPF if they have less than 5 staffs working with them.

And why want SOCSO ? That is one really BS insurance scheme that dont really benefit us.

Because it only covers ' working hour '... all those non working hour, for example while travelling to work, or maybe you worked late one night and boss ask you to go buy something and accidents happens. You don't get the socso coverage at all.
( thats what happens to my bro. )

I would be glad if there's no SOCSO deducted from my pay. Its much better to put the money in personal life insurance.
*
Why not? And it is not because of the "BSness" or how cheap of it, it is our right. Its like I say, "Why we need IC? I dont use it most of the time and I rarely use Touch n' Go anyway!"

Not everybody sit inside a comfortable office block, I have 5 tons metal plate hanging up and down beside me, you will be looking at a spagetti paste if any of these fallen off the magnetic hook.

And do you think work place is safe? I had an ex-colleague slipped and hurt her neck in the office, she has been fully covered by SOCSO for all her medical needs plus one year of paid sick leave so she can focus on her treatment.

This post has been edited by rexis: Apr 9 2009, 01:32 PM

 

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