Whom Should You Inform When an Employee Resigns?

If an employee is leaving your company, you will need to inform certain parties. Here's a guide on what to do if an employee leaves your organisation.

Social Security Organisation (SOCSO)/Employment Insurance System (EIS)

Employers will need to update the employee's resignation date on the ASSIST portal. 

To update the employee status, you can follow the steps below:

Click on the pic for the full image.

1. In the Parent Employer profile, hover over the Update menu and then click Update Employee Resigned Date.

2. Under the Search for Employer section, you can find the employer by selecting the dropdown list options (Employer Code/Employer Name/Business Registration No.) OR choose employer from the list displayed.

3. Click the Search icon.

4. Click the Edit icon (pencil) under the Action column of the selected employer.

5. Select All if all employees resigned on the same date or Specific if there are other active employees. *If you choose Specific, follow Step 6 to 8. If you select All, follow Step 9 to 10. 

6. Choose the Employment Resign Date. *The resigned employee will be removed from the active employee list.

7. Click the Add icon under the Action column on the selected employee(s) that has resigned. 

8. Click Save and Continue

9. If All is selected, add the Employment Resign Date.

10. Click Save & Continue.

11. Click Add Document to upload supporting document.

12. Select Description (Others) from the dropdown list. 

13. Click Choose File and select the file to upload. You may also insert remarks in the Remarks text box.

14. Click Add Document. The upload document will be reflected on the page. 

15. Click Save and Continue.

16. You can verify the details by checking the submission under Preview. 

17. Click Submit and Confirm to proceed with submission.

18. You have successfully updated the Employee Resigned Date. 

Ensure all details are accurate. Click on the pic for the full image.

Inland Revenue Board Of Malaysia (IRBM)

Employers must notify IRBM at least 30 days before the employee ceases employment if:

• The employee is retiring,

• The employee was eligible for PCB (Monthly Tax Deduction), but the employer has not made any deduction,

• The employee is leaving Malaysia permanently. (The employer will need to submit Form CP21 for this situation).

For all the above situations except the third, you will need to submit Form CP22A. You must withhold any money payable to the employee until you receive the IRBM Assessment Branch's Clearance Letter.  

Form CP22A is the notification of the cessation of private-sector employees' employment.

However, the employer does not need to notify IRBM about the employee ceasing employment or withhold money payable to them if:

• The employee is subject to PCB, and the employer has made the deduction. 

• The employee's remuneration is less than the minimum income subject to PCB.

• The employer is aware that the employee will be employed elsewhere in this country.

What happens if the employer fails to notify IRBM?

If the employer fails to notify IRBM, they are liable to prosecution. If convicted, they are liable to a fine of not less than RM200 and not more than RM2,000 OR to imprisonment for a term not exceeding six months OR both. 

The employer will also be responsible for any tax due from the employee.

Employer Provident Fund (EPF)

The employer does not need to submit any forms to KWSP if an employee is leaving their company. For EPF, these are the employe's responsibilities:

1. Register as an EPF employer within 7 days from the date of hiring workers

2. Registering employees as EPF Members

3. Keeping books/sign wages/salaries

4. Provide salary statements/payslips

5. Payment of EPF contribution

6. Inform EPF on the following items:

   1. Contrasting information between EPF statement with employer records

   2. Change of address and name/status of employers

   3. Termination of liability to contribute

   4. Temporarily not liable to contribute (No employees temporarily)

Sources: SOCSO's ASSIST & EIS Employer Portal User Guide, LHDN, EPF

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