HRDF Registration: Is It Compulsory and How to Register?

The HRDF registration process in Malaysia is simple. All you really need is the internet and the required registration documents prepared in advance.

If you do not know where to begin, we’ve prepared a step-by-step guide that can help you streamline your HRDF registration.

Who Is Eligible To Register With HRDF?

As of 1 March 2021, in alignment with the First Schedule of the PSMB Act 2001, access to HRDF will be expanded to all industries in Malaysia.

It is compulsory for businesses with 10 or more Malaysian employees to register, whereas registration is optional for companies with five to nine Malaysian employees.

Any employer who has not registered with HRDF could be fined up to RM10,000 or face imprisonment of up to a year.

However, there are several organisations exempted from HRDF registration, including:

· Federal statutory bodies

· Local councils

· NGOs associated with welfare activities

· State Government

Consequences Of Not Carrying Out The HRDF Registration Process

Under Section 13(1) of the PSMB Act 2001, it specifies that every Malaysian employer who is covered under the Act must register with HRD Corporation. If an employer fails to do so, they are liable for any of these punishments:

· Fined not exceeding RM10,000

· Imprisonment for a maximum period of 1 year

· Or both of the penalties listed above

Moreover, HRDF payments are to be made before the 15th of the month the payment is due. If an employer does not submit the HRDF payment before the stipulated time, they:

· Will be fined (not exceeding RM20,000), face imprisonment (not exceeding two years) or both

· May have to pay a yearly interest of 10% for each day the payment is delayed

The HRDF Registration Process in Malaysia

The HRDF registration process is simple and can be completed online. We’ve created a step-by-step guide you can refer to when registering with HRD Corporation.

Step 1:

This step involves preparing the necessary HRDF registration documents. They include:

· A registration license form, such as the registration of business (ROB) or registration of company (ROC) or any other relevant documents, i.e., Form B, Form 8, Form 9, etc.

· The company’s audited financial reports, company profile or annual report

· The company’s latest SOCSO or EPF statements

Step 2:

Visit HRD Corporation’s website and download the checklist.

Step 3:

Select the ‘Register Here’ button.

Step 4:

Click on ‘Employer’ and then ‘Form 1’.

Step 5:

Fill in the form.

Step 6:

Upload your supporting documents.

Step 7:

Select the ‘Submit’ button.

If you want to know more about the HRDF registration process, you can visit HRD Corporation’s website to view their onboarding courses. You can also visit Kakitangan.com’s main blog to read articles from HR experts in Malaysia.