MTUC deputy president Effendy Abdul Ghani said this was an unreasonable excuse, maintaining that strict action needed to be taken against such bosses.

He told FMT that the MTUC received around 150 complaints a month about employers making late Socso contributions or not paying at all.

“Such excuses are unacceptable. This is a serious act of non-compliance by employers and Socso needs to penalise them with heavier punishments.

“Employers need to realise the importance of registering their employees and making the contributions under Socso under the law. The same goes for those who hire teenagers or foreigners as part-time workers,” he said.

Effendy called for penalties to be reviewed, suggesting that compounds be increased from RM5,000 to a maximum of RM50,000.

Those found guilty under the Act may be liable to a maximum fine of RM10,000 or two years in prison or both. Compounds for offences under the Act may not exceed half the maximum amount for fines.

On Wednesday, Socso said it issued 220 compounds and seven compliance orders after conducting checks on 1,258 employers nationwide.

It found that around 20% of employers and employees were not registered with the organisation, while one of employers’ most common excuses for not contributing to Socso was that they did not know they needed to do so.

Effendy also said that Socso’s website and the Perkeso Prihatin mobile app needed to be updated from time to time. The government should also publicise Socso’s role and conduct outreach efforts at public places,” he said.