Employees Social Security Act, 1969

Employees’ Social Security Act 1969 (SOCSO) is enacted to provide protection for ‘employees’ (as defined under the Act) and their families against economic and social distressing situations where the employees sustain injury or death, regardless of their wages. It is based on the insurance concept whereby the employers and employee contributed monthly against risk insured. It is also based on the ‘no fault principle’. Who are covered by the Act? Section 2(5) of the SOCSO Act defines employee as any person who is employed for wages under a contract of service or apprenticeship with an employer, whether the contract is expressed or implied or is oral or in writing, on or in connection with the work of an industry to which this Act applies and

• (i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the industry, whether such work is done by the employee on the premises of the industry or elsewhere;

• (ii) who is employed by or through an immediate employer on the premises of the industry or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the industry or which is preliminary to the work carried on in or incidental to the purpose of the industry; or

• (iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service.