Staff unions and employees’ representatives in the Joint Operating Companies (DPOC, GPOC and SPOC) have called on the Ministry of Labour to suspend the enforcement mechanism for the National Social Insurance Fund (NSIF), citing alleged non-compliance with key provisions of the National Social Insurance Act 2023.

The unions said they support the lawful administration of the NSIF and back retirement protection, disability benefits, survivors’ benefits, and the safeguarding of workers’ contributions.

However, they raised concerns over the implementation process and said the legal framework must be fully respected.

“We therefore call upon the Ministry of Labour to suspend the recent enforcement mechanism that is in conflict with Sections 9, 10, 11, 25 and 36 of the National Social Insurance Act 2023 until the law is fully complied with and in accordance with a phased implementation matrix and timeframe,” the unions said.

The unions cited provisions of the Act governing the structure and administration of the Fund, including Section 9, which establishes the Board of Trustees; Section 10, which defines its composition; Section 11, which provides for presidential appointment of Board members; and Section 36, which states that the Managing Director shall be appointed by the Board.

They said the appointment of a Managing Director before the constitution of the Board, or outside its authority, would undermine the law.

“The process being followed weakens the independence of the Fund and does not reflect the governance structure provided in the Act,” the statement said.

The unions also raised concerns over a directive issued by the Undersecretary of the Ministry of Labour requiring strict compliance prior to the full publication of contribution rates, remittance procedures, designated bank accounts, and registration systems for employers and employees.

They said this may undermine Section 25 of the Act, which outlines procedures for registration, contributions, record-keeping, deductions, collection and payment.

They called for suspension of the enforcement mechanism until full compliance is ensured and implementation follows a phased framework in line with the law.

“We are calling for proper sequencing of implementation to ensure legal certainty, institutional integrity and public trust in the Fund,” the unions said.

The unions also called for legal clarification on the appointment of the Managing Director prior to the constitution of the Board and urged broader stakeholder engagement on the NSIF Act and implementation process.

They further called for publication of implementation procedures, including worker registration systems, data management processes and personal identification numbers for contributors.

In addition, they urged formal consultations with employers, workers’ unions and other stakeholders through seminars, conferences and awareness programmes.

The unions said workers’ contributions constitute deferred income that must be protected through transparency and accountability.

They also said they have authorized a legal team to pursue legal action on behalf of the unions regarding the implementation of the NSIF Act and to engage the Ministry of Labour to ensure compliance with national laws and policies.