Advertisement

Employ a bankrupt person

2069 Views  ⚫  Asked 9 Years Ago
asked on Oct 19, 2009 at 03:35
by   WTPTT
edited on Sep 5, 2016 at 09:18
 
Can a bankrupt be employed? If the bankrupt person chooses not to contribute to repay his/her debt, are there any liabilities as an employer? Is the employer under any legal obligation to report the bankrupt employee to any government department?
0 had this question
Me Too
0 favorites
Favorite
[ share ]
13 Answers
 1   2   Next »  Last »

answered on Oct 19, 2009 at 13:54
by   firefly
edited Sep 5, 2016 at 09:19
 
Can a bankrupt be employed? Why not?

If the bankrupt person chooses not to contribute to repay his/her debt, are there any liabilities as an employer?   No.

Is the employer under any legal obligation to report the bankrupt employee to any govt department?   No.
0 found this helpful
Helpful

answered on Oct 21, 2009 at 02:37
by   WTPTT
edited Sep 5, 2016 at 09:20
 
The reason why I ask is because this bankrupt person has made a request that his pay be made under a third party name. His explanation is that as a bankrupt he is not 'supposed' to work or own any assets. While I have no problems with him being a bankrupt, I do have valid concerns if he is not recorded as an employee of the company. I am puzzled with his explanation...
0 found this helpful
Helpful

answered on Oct 21, 2009 at 03:18
by   notalawyer
edited Sep 5, 2016 at 09:21
 
Probably he is has not yet applied to Jabatan Insolvensi Malaysia (JIM) to open a bank account and he is too shy to ask you to pay in cash.  That's why the 3rd party name.

You should help him out.
0 found this helpful
Helpful

answered on Oct 21, 2009 at 15:11
by   notapro
edited Sep 5, 2016 at 09:22
 
@WTPTT,

If he does not want to apply to Jabatan Insolvensi Malaysia (JIM) to open a savings account. Another way as suggested by notalawyer is pay him in cash in his name as employee for the record of the company. But the cash is deposited into the 3rd party account with no reference to your company's record.

Or just pay him cash directly.

You should help him out.
0 found this helpful
Helpful

answered on Oct 21, 2009 at 15:22
by   notapro
edited Sep 5, 2016 at 09:22
 
@WTPTT,

Another thing:
A bankrupt is employable under the law to work to earn a living but he cannot do his own commercial business or own any assets.

If a bankrupt is not supposed to work to earn a living, it is against human rights.
If he cannot work, then the government needs to feed him.
0 found this helpful
Helpful

answered on Oct 24, 2009 at 01:48
by   WTPTT
Thanks All replies have been a great help

I have offered him a job ... the ball is in his hands
0 found this helpful
Helpful

answered on Mar 2, 2013 at 16:45
by   Lily
edited Sep 5, 2016 at 09:25
 
My organization has just employed a bankrupt person.  He requested to make his paycheck under his wife's name, and we did that.  His reason is his bank account was suspended and he has debts to be settled with the bank, he said he will be it settled by this year.

He is under a contract employment with our organization with no EPF and SOCSO provided.  I would like to know whether we are doing a right and legally.  Can a bankrupt person contribute EPF and SOCSO, or even PCB deduction (Potongan Cukai Bulanan or Monthly Tax Deduction)?
0 found this helpful
Helpful

answered on Mar 5, 2013 at 03:55
by   Smiley
He is under a contract employment with our organization with no EPF and SOCSO provided. I would like to know whether we are doing a right and legally. Can a bankrupt person contribute EPF and SOCSO, or even PCB deduction?

Yes, a bankrupt person can contribute EPF, Socso and EPF. It should be given these benefits to the bankrupt person if he is a full time employee. It has no conflicts at all for the above contributions vs bankruptcy. Hope the employer here should understand the bankruptcy persons in this forum need to survive their life and support their family.
0 found this helpful
Helpful

answered on Mar 5, 2013 at 21:39
by   Lily
Thanks Smiley for the answer.  I will make a proposal to revise the decision.
0 found this helpful
Helpful

answered on Aug 24, 2016 at 15:32
by   YONG
A bankruptcy person still need to pay PCB and income tax?
0 found this helpful
Helpful


 1   2   Next »  Last »

Your Answer





By posting your answer, you agree to the privacy policy, cookie policy and terms of service.