Okay, I nak mencarut sudah ni.
This whole employment contract stamping issue is causing a panic among the HR community. Because, let’s face it – HR folks take paperwork very seriously. So when we hear things like:
“If you don’t stamp your employment agreements, you’ll be fined RM10,000!”
Our jantung goes dug dap dug dap…
Now, now, now… Not like that… Let me tell you what I believe actually happened.
Begitu cerita dia…
It all started with Malaysia’s Inland Revenue Board (IRB) or Lembaga Hasil Dalam Negeri (LHDN) introduced the Stamp Duty Audit Framework effective 1 January 2025, to strengthen compliance with the Stamp Act 1949.
One of the key highlight of this framework is:
If a company fails to provide required information during an audit, they can result in fines up to RM10K, starting 1 January 2026.
Then, during a few of these early audits, LHDN found that many companies hadn’t stamped their employment contracts. Why? Because honestly, this wasn’t a common practice before, even though it’s technically required by law. It just wasn’t actively enforced.
That is when a few HR folks started asking questions on Facebook, and suddenly the message spiralled into:
“If you don’t stamp your contract, you’ll kena fine RM10K!”
And of course when the media hangat-hangatkan the issue, lagilah HR panic!
Adoi.
So jangan panic dulu.
Associations like FMM & MEF are already engaging with the government to seek clarity and support employers through this. Sabar dulu.
Meanwhile, if you are so lucky kena audit by LHDN, co-operate fully and question constructively. And if you disagree with the assessment, you are allowed to file a written objection under the law. Write the appeal properly. Politely.
There is always a way. Jangan panic dulu.
xoxoxo, AuntyHR
P.S. To prevent panic attacks like this in the future, may I suggest you to subscribe to E2 Consulting who specialises in HR and IR compliance. Bagi tahu AuntyHR recommended for special attention hehehe… This podcast is a preview of what you can expect out of them: https://www.e2consulting.com.my/perspectivemedia/podcase-s1e2-ir-updates-madani-health-screening?utm_campaign=f7f7f7e4-d453-45d2-95b6-2a65bb4cf300&utm_source=so&utm_medium=mail&cid=ff5aaa7d-99d7-4716-aa78-96191b41ca07
