Company refuses to submit CPF Contributions for a “Special Employee”

Scenario

Instructions is given to HR by the Chairman to exempt CPF Contributions for a particular staff who was found to be close to the former. This case is not under my charge but I thought to myself: “It could be me one day, and how would I react?”

What I will do

1. Highlight the implications of her actions – legal issue and consequences. No doubt it will be a fight against the Emperor but it is something that absolutely cannot be compromised. Of course, she might already knew it is illegal (I mean, for her position, she should right?) and therefore might not buy it and force HR to proceed. In that case, will proceed to Step 2.

2. Inform superior via email (black and white) informing the legal noncompliance we are having and had explained my stand according (as a form of protecting myself)

3. Proceed though its illegal

Yes it is illegal, but the boss has the final say. I believe I had done my due diligence. There are times we couldn’t do the right thing, but we are definitely obliged to advise (or warn).

If it was you, what will you do?

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2 thoughts on “Company refuses to submit CPF Contributions for a “Special Employee”

  1. Lee jc

    I will report to the authorities and if no action, I rather work for a law abiding boss than get into trouble later on. Is a matter of time, law will catch up with you. You cannot avoid liability just by saying I’m following my boss’s instructions. In law, don’t think this is acceptable, unless you can prove it beyond and beyond any doubt, you could be accused for being a accomplice. Only my personal thoughts…

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    Reply
    1. Yam Post author

      Hi Jc,

      Thank you for sharing your thoughts.

      Agree with you that we should work for a law abiding company, and in fact, I had already left the company, partly due to this.

      Agree as well that liability can’t be avoided without any justifications, and thus, I always believe in “black and white” supporting evidence to protect myself.

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      Reply

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