Vol. 3, No. 1
Journal of Politics and Law
Employees’ Rights under the Malaysian Social Security Organisation Rooshida Merican Binti Abdul Rahim Merican
Faculty of Law
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor Darul Ehsan, Malaysia
This article discusses on the remedies available to the injured employees under the Employees’ Social Security Act 1969 (ESSA 1969) (Note 1). Remedies are the means given by the law for the recovery of a right, or of compensation for the infringement thereof (Note 2). Since employees covered by ESSA 1969 are not eligible for workmen’s compensation, they are only eligible for benefits administered by the Social Security Organisation (SOCSO) (Note 3). The relevant issues in this article pertain to the curtailment of the employees’ rights to a claim under SOCSO as once an employee is injured, the employee must know what to do, what are the benefits and remedies available, the laws applicable, how to withdraw the contributions and so on. The article introduces a discussion on ESSA 1969, that is, the purpose of the Act, the requirements for eligibility of the benefits and the contributions. As the object of ESSA 1969 is to provide, through SOCSO, social security to employees and their dependants in the event of injury or death arising in the course of employment under the employment injury insurance scheme and the invalidity pension scheme, the study then examines the two SOCSO’s schemes. This article also discusses the various benefits available under the insurance schemes focusing on benefits that are directly related to employees. Keywords: Employees’ right, Malaysian Social Security Organisation, Employees’ Social Security Act 1969 1. Introduction
SOCSO is a statutory body under the Ministry of Human Resources. It was established in January 1971 to improve social security protection by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees to reduce suffering and to provide financial guarantees and protection to families. The Employment Injury Insurance Scheme provides protection for accidents that occur while travelling, arising out of and in the course of employment and occupational diseases and Invalidity Pension Scheme provides protection against invalidity or death due to any cause not connected with employment. Benefits include medical benefit, temporary and permanent disablement benefit, constant attendance allowance, dependant’s benefit, funeral benefit, rehabilitation benefit and education benefit, survivors’ pension, invalidity grant (Note 4). Employees are covered by the Employment Act 1955, the Industrial Relations Act 1967, the Employees Provident Fund Act 1951, the Employees Social Security Act 1969 and the Occupational Health and Safety Act 1994 (Note 5). The Employment Act 1955 is the main legislation covering the relationship between employer and employee. The Act is applicable to all manual workers and other workers earning less than RM1500.00. The Act provides the minimum conditions of employment. Amendments to the Act in the year 1998 provide that all those earning below RM5000.00 can seek protection under the Act if their employers fail to adhere to the terms and conditions in the contract of service between employer and employee. The Industrial Relations Act 1967 covers the relationship between unionised workers and employers. Section 20 of the Act also allows for workers to seek reinstatement if unfairly dismissed. The Employees Provident Fund Act 1951 requires the employer and employee to contribute 12% and 11% of the employee’s salary to the Employees Provident Fund. The Employees Social Security Act 1969 covers all workers who earn less than RM3000.00. The Act provides for benefits and pension if a worker is injured or disabled during working hours or while travelling to and from work. The Occupational...
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