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The following are guidelines applicable for employment of foreign worker.
In Peninsular Malaysia, the Ministry of Home Affairs is the approving authority for the employment of foreign workers of skilled, semi-skilled and unskilled categories. Subject to conditions that will be determined from time to time, approval will be based on the merits of each case. Only after efforts to get qualified local citizens and permanent residents have failed, an employer’s application to employ foreign workers will be considered.
Before the employment of foreign workers, you must first obtain approval from the Ministry of Home Affairs (MOHA) or through an authorized out-sourcing company approved by the Ministry.
The Ministry of Home Affairs provides detail guidelines on the rules, regulations and also the procedures for the recruitment of foreign workers on their web site – http://www.moha.gov.my
Any employer who is eligible for applying more than 51 foreign workers is allowed to apply directly from the Ministry through the normal process.
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Any employer who is eligible but required less than 50 foreign workers must appoint an out-sourcing company to be their labour supplier. The employer must signed a contract.
The foreign workers annual leaves entitlement? An employee shall be permitted to annual leave of not less than the following:
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Wages less any lawful deductions are payable not later than 7th day after the end of wage period. Where a wage period is not specified in the contract of service, the wage period shall deem to be 1 month. A wage period shall not exceed 1 month.
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Under the Foreign Worker’s Scheme, an employer of foreign workers is responsible to pay an insurance premium of RM 86 per year per worker.
An employer is not allowed to deduct the earning of a worker for the payment of insurance premium. An employer found guilty of such action, shall be liable, on conviction to a fine of RM 5,000 or to imprisonment for a 1 year term or both.
An employer found guilty of not buying insurance for workmen’s compensation, shall be liable, on conviction to a fine of RM 20,000 or imprisonment for a term of 2 years or to both.
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Malaysian workers are no longer covered under this Act effective 1st July 1992. Local workers are covered under the Employees Social Security Act 1969.
Only foreign workers are covered under this Act in respect of compensation for employment injury as well as non-employment injury vide Workmen’s Compensation (Foreign Worker’s Scheme) (Insurance) order 1993.
