Govt Won't Increase Fine for Employers Who Violate Act 446

Human Resources Minister Datuk Seri M. Saravanan said that now is not a suitable time to raise the fine against employers who violate the Workers' Minimum Standards of Housing and Amenities Act 1990 (Act 446).

He told Parliament that the reason was due to the current state of the economy and labour shortages after the Movement Control Order's implementation since last year. 

He also said that the number of foreigners who contributed to the Social Security Organisation (Socso) has also decreased from 1.8 million to 1.1 million within just a year. The number shows that Malaysia is dealing with a labour shortage crisis.

The latest amendments to Act 446 requires employers to provide adequate hostels and accommodation to their workers.

Saravanan said that as of now, the government is already imposing an RM50,000 fine for every worker to employers who fail to comply with Act 446.

"In such conditions, I think it is not a proper time to increase the fine," he replied to a supplementary question from Datuk Che Abdullah Mat Nawi during Ministers' Question Time.

Che Abdullah had questioned whether the ministry would consider forcing higher fines as many employers have failed to comply with Act 446.

Meanwhile, Saravanan said his ministry opened 940 investigation papers against employers in various sectors between June 2020 and August 2021.

"About 618 compound notices were also issued for several offences, such as failing to meet the accommodation's minimum standard including beds, mattresses and pillows for employees," he added.

 

Workers' Minimum Standards of Housing and Amenities Act 1990 (Act 446)

Under act 446, the SOPs include:

1. Providing facilities for washing and sanitising hands
2. Conducting cleanliness and disinfection practices in common areas.
3. Avoiding group activities
4. Ensuring social distancing of at least 1 metre between workers

Companies that do not comply with the Workers' Minimum Standards of Housing and Amenities Act 1990's recent amendments (Act 446) could face a maximum fine of RM50,000.

The Human Resources Minister stated that worker housing placed either within or outside of construction sites must fulfil three primary aspects:

• Safety
• Cleanliness
• Comfort

The employer must also provide enough space for the residents and comply with rules and regulations. If they do not comply with the standard operating procedures (SOPs) under Act 446, they could be fined up to RM50,000.

Before the amendments, Act 446 only covered the mining and plantations sectors larger than 8.09ha. The amendment has extended the act to protect the worker's housing in all industries across Malaysia.

Source: The Star

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