Cessation and deregistration of an employer

Cessation and deregistration of an employer

Can an employer deregister with HRD Corp?
Section 16 (1) PSMB Act 2001, no employer who is registered with the Corporation shall be deregistered.

Section 16 (2) PSMB Act 2001, regardless of subsection (1), if the number of employees of an employer to whom this Act applies, decreases to below the minimum number for three consecutive months, the employer may submit an application to the Corporation for deregistration together with any relevant documents to prove such decrease.

If my company has ceased its operation, wound up, dormant, acquired by or merged with another company, what should I do?
Section 13 (3) PSMB Act 2001, where any person cease to be an employer under this Act, he shall within thirty days of such cessation notify the Corporation in such manner as may be prescribed.

What is the period to apply for cessation or deregistration of a company?
Any cessation or deregistration application should be done by the employer within 30 days after the company stops operating.

Can a company halt its operation and deregister with HRD Corp?
No, deregistration only can be done if the company has changed its nature of business and the new business is not covered under the PSMB Act 2001 or the company has less than 10 Malaysian employees for 3 consecutive months.

When a company changes its origin business, and the new business is not covered under PSM Act 2001, can the company deregister with HRD Corp?
Yes, a company can deregister with HRD Corp if the new nature of business for the company is not covered under the PSMB Act 2001.

What will happen to the balance levy after a company deregisters or secedes from HRD Corp?
The balance levy will be transferred to the HRD Corp General Reserve.

    • Related Articles

    • How To Apply Cessation

      A COMPANY CAN APPLY FOR CESSATION WITH HRD Corp IF: The company has ceased its operation, wound up, dormant, acquired by or merged with other company. No levy and interest arrears. No training conducted after the submission of Form 4. CHECKLIST FOR ...

    • Employees Are Reduced To Less Than 10

      1. What will be happened if the employees are reduced to less than 10 employees? The levy rate for employers registered under compulsory category is maintained at 1%, although the number of employees is reduced to less than 10 employees. 2. Can an ...

    • Change of Employer & Acquisition of Interest (Levy Transfer)

      A COMPANY CAN APPLY FOR ACQUISITION (LEVY TRANSFER) FROM HRD CORP IF: The company has ceased its operation and acquired by or merged with another company; No levy and interest arrears; No training conducted after the submission of Form 4 and Form 5. ...

    • New Employer Registration - FAQs

      HRD Corp Employers 1. Does my company need to register with Human Resource Development Corporation? The registration of employers is stipulated in the Pembangunan Sumber Manusia Berhad Act 2001 (PSMB Act 2001). If your company employs a minimum of ...

    • How To Register As a New Employer with HRD Corp

       You may click these links for the required documents to be attached along with your registration/application. Online Registration Form 1 Document Checklist Employer Integrity Pledge

    • Popular Articles

    • Levy Calculation Guideline

      Section 2 of the PSMB Act 2001 Employee Any citizen of Malaysia who is employed for wages under a contract of service (under full-time employment whether contract or permanent staff) with an employer, but does not include any domestic servant. If the ...

    • E-Disbursement Application

      • Introduced to employers and training providers in 2003. • Reimbursement of training grants through direct credit to employer’s bank account. • A secure and fast method of payment. • A solution for unpresented cheques to employers. • Training grant ...

    • Levy Forfeiture

      Section 25 of the PSMB Act 2001 If an employer does not make any claims against the Fund within such period as may be determined by the Board from the date of its registration with the Corporation or from the date of the last financial assistance or ...

    • Steps To Submit HRD Corp Claim For Employers - Skim Bantuan Latihan (SBL) and Skim Latihan Bersama (SLB)

      Note: Claims need to be submitted by employers after the approval of grants and training completion. Effective 1st August 2019, training claims must be submitted within six (6) months after training completion. For Exception to HRD Corp Claimable ...

    • Levy Arrears - Form 3 Schedule of Arrears

      Employer circular 08/2015 - Employers have to fill up form 3 before make payment for arrears payment. The process days will take 5 working days and will notify through the “inbox” in Etris System. NOTE: please check Form 3 status is ...