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Letter Employment for Contract Staff

LPT
Member
Mon, 21 Sep 2015 11:21:06 AM  (Last updated: Mon, 21 Sep 2015 11:41:32 AM)

Knowing that contribution of EPF and Socso is a must for employee, if employer and employee have mutual agreement on not contributing EPF and Socso, how should we state in the employment letter under allowance/remuneration that employee is getting a nett pay each month (we do engage contract staff for 3 months). Could we state as below: ?

You will be paid an all-inclusive remuneration of a total of RMX,XXX/- (Ringgit Malaysia: XXXX only) for service during this contractual period.   or

You will be paid an all-inclusive remuneration of a total RMXXXX.00 (Ringgit Malaysia: XXXX Only) per month. The Company will not be responsible for payment of contributions to EPF, SOCSO, medical claims and you will not be entitled to any other benefits accorded to a permanent employee.

**or is it still illegal even we have mutual agreement?

KL Siew
Administrator
Mon, 21 Sep 2015 11:41:32 AM

Whatever mutual agreement contrary to the law will be null and void and unlawful. You can be prosecuted for the offence.

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