Human resources minister V Sivakumar said employers who do not pay wages through a bank account were committing an offence punishable by a fine of up to RM50,000 under Section 25 and 25(A) of the Labour Act 1955 (Act 265).

At a joint operation held at Pasar Borong Kuala Lumpur today, Sivakumar said 34 employers were inspected and 19 of them were found to be paying their workers wages in cash.

Other offences included violations of working hours and non-compliance with the Minimum Wages Ordinance.

“The operation aims to address complaints regarding unpaid wages, lack of contributions to the Social Security Organisation (Socso) and the Employees Provident Fund (EPF), and employers not paying salaries via bank accounts,” he told reporters after participating in the operation at the wholesale market.

Meanwhile, Sivakumar said that from January to October, a total of 1,654 investigation papers were opened for offences relating to payment of salaries, accommodation of workers and minimum wage orders, resulting in total fines of more than RM4.3 million.

He said after investigations, fines totalling RM391,236 were imposed in 357 cases. In 775 cases, the employers paid compound fines totalling RM3,958,500.

The investigation papers were opened under Act 265, Workers’ Minimum Standards of Housing and Amenities Act 1990, and Minimum Wages Order 2022.

Sivakumar said the ministry and relevant departments are determined to ensure there is no element of forced labour in the country. Integrated operations will continue throughout the country.

“I have stressed several times that if there are complaints from employees or the embassies, we will take stern action against any employer who does not comply with the existing laws, in line with the International Labour Organization (ILO) Convention,” he said.