Employment Practice Liability Insurance (EPLI) shall be a group insurance, offered by Insurance Provider with the aim of assisting our registered employers during these challenging times from potential wrongful dismissal compensation claims by an employee (s).

The subscription of EPLI would cost a one-time premium of RM1,500  (to be deducted from HRD Levy) for every registered employer.

The registered employers are encouraged to submit their feedback on the decision of subscription latest by 15 March 2021. Notwithstanding the decision of non-subscription, if 75% of our registered employers agree to the subscription of EPLI, it shall be mandatory for all our registered employers to subscribe to the group insurance of EPLI and an automatic deduction of HRD Levy will therefore be made.

The Policy Coverage

  • 12 months claim period;
  • RM200,000 per employer (up to RM100,000 per claim);
  • RM20,000 legal costs coverage;
  • RM20,000 settlement through mediation cost coverage;
  • Settlement coverage including back pay, future pay and punitive damage subject to been awarded under wrongful dismissal; and
  • Run-off cover up to 6 years.

Terms & Conditions

  • Open to HRDF registered employers only
  • The policy covers 12 months with effect from the common policy inception date
  • This policy provides coverage for RM 200,000 in aggregate & RM 100,000 in single claim which inclusive of Defense Costs Payment limited to RM 20,000.00
  • This policy protects an employer from any claim brought against them by an employee for wrongful dismissal arising from any regulatory or administrative proceeding in an industrial court of Malaysia.
  • The policy will act as an “Umbrella Policy” if the HRDF member already has a similar policy.


HRDF is merely a facilitator between the Employer (Insured) and the Insurer. All terms and conditions are subject to the Insurance Policy solely between the Insured and the Insurer. HRDF shall not be held liable for any claims and/or disputes arising between the Employer (Insured) and the Insurer.

Need assistance?

Contact EPLI Support Team
at eplicare@hrdf.com.my