Employer Travel Restriction
Travel Restriction From Leaving Malaysia On
Company Directors, Partners Or Sole Proprietors
Employers are responsible to contribute for their employees in accordance with the statutory rates as stipulated by the Employees Provident Fund (EPF). Employers who fail to do so are subjected to enforcement and legal action by the EPF, which includes the imposition of travel restrictions on the company directors, partners or sole proprietors, as provided under Section 39(1)(a) of the EPF Act 1991.
Avoid Travel Disruptions
- As a company director, business partner, or sole proprietor, you are advised to check your travel status in advance before planning to travel abroad. Ensure you fulfill your responsibilities as an employer and settle all outstanding EPF contributions, to avoid travel restrictions that may affect your travel plans.
Check Travel Restriction Status
- You may check your travel restriction status via the official portal of the Immigration Department of Malaysia: https://sspi.imi.gov.my/SSPI/
Restriction Imposed
- Please refer to the Immigration Department of Malaysia office to identify the issuing authority of the restriction.
Restriction Imposed by EPF
- Should there be confirmation that the travel restriction was imposed by the EPF, please contact the Unit Larangan Keluar Negara KWSP via email: [email protected], providing your full name and identification card or passport number for further action.
Application for Release of Travel Restriction
- Applications for the release of travel restrictions will only be considered by EPF if the individual involved whether as a company director, partner, or sole proprietor has settled the outstanding EPF contribution payments owed by their entity. Please refer to the Frequently Asked Questions (FAQ) for more information.
Frequently Asked Question
1. Who is a company director/partner/sole proprietor?
A Company Director refers to an individual who is registered as a director of a company incorporated with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM).
A Partner refers to an individual or entity that collaborates in a business based on a partnership agreement.
A Sole Proprietor refers to an individual or entity that owns and holds sole ownership of a business or company registered with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM).
2. What does Section 39(1)(a) of the EPF Act 1991 stipulate in relation to actions restricting an individual from leaving Malaysia?
Section 39(1)(a) of the EPF Act 1991 provides that:-
“Where the chief executive officer has reason to believe that any person is about or is likely to leave Malaysia without paying any outstanding and due contributions under this Act, the chief executive officer may issue to the Director General of Immigration a certificate containing particulars of the person and the outstanding and due contributions with a request that the person be prevented from leaving Malaysia, unless he pays the outstanding and due contributions, or furnishes security to the satisfaction of the chief executive officer for its payment.”
3. Under what circumstances will a company director/partner/sole proprietor be subject to a travel restriction preventing them from leaving Malaysia?
A company director, partner, or sole proprietor who fails to remit outstanding EPF contributions (including accrued dividends and late payment charges), may be prohibited from leaving Malaysia.
4. How can a company director, partner, or sole proprietor check the outstanding amount that has led to the travel restriction from leaving Malaysia?
The company director, partner, or sole proprietor can reach out to Unit Larangan Keluar Negara KWSP at [email protected] to obtain detailed information regarding outstanding contributions.
5. What is the procedure to apply for the removal or lifting of a travel restriction preventing departure from Malaysia?
1. Submit Application: Applications must be submitted via email to [email protected] at least five (5) working days before the date of travel, and must include the following information:
- Full name of the individual subjected to the travel ban;
- Identification number/passport number;
- EPF Employer Number (if applicable);
- Purpose of travel;
- Destination details; and
- Duration of stay abroad.
2. Acknowledgement of Application: The applicant will be informed by the EPF regarding the details of the outstanding arrears and the total payable amount.
3. Making Payment: Payment can be made via bank draft or cashier order to the Unit Larangan Keluar Negara case handling officer, or at any EPF Office. The official payment receipt must be submitted as supporting documentation. The release application process will not be initiated unless proof of payment is duly submitted to the Unit Larangan Keluar Negara.
4. Status Notification: Confirmation and status regarding the application for release from the restriction to leave Malaysia will be notified by EPF via email.