Labour Dept DG Approval Needed to Hire Foreign Workers

According to Human Resources Minister V. Sivakumar, employers must now obtain the Foreign Workers Employment Approval from the director-general of the Labour Department.

 

The approval applies to all types of foreign workers

He said this approval would apply to all kinds of foreign workers, as/ well as expatriates, based on the recent amendments to the Employment Act.

He also explained that prior applications had been turned down since the businesses had broken labour regulations.

He claimed that by making it mandatory right away, the Labour Department could vet them in advance and guarantee that they complied with the law before they were permitted to recruit foreign workers.

He added that the prior applications that were turned down because the employers didn't follow labour legislation were the reason the employers needed the director-general of JTKSM's approval.

According to the minister, Section 60K (4) of the Act will serve as an initial assessment, which is essential in ensuring potential companies that hire foreign nationals in the country have a spotless record when it comes to adhering to labour laws.

He also stated that the issue of forced labour at local industries producing gloves and oil palm had harmed Malaysia's image and credibility.

 

Section 60K of the Employment Act

Under Part XIIB Employment of Foreign Employees, Section 60K states the employer's duty to furnish information and returns:

(1) An employer who employs a foreign employee shall, within fourteen days of the employment, famish the nearest office of the Director General with the particulars of the foreign employee in such manner as may be determined by the Director General.

(2) An employer or any specified class or classes of employers, whenever required to do so by the Director General, shall furnish returns of particulars relating to the employment of a foreign employee in such manner and at such intervals as the Director General may direct.

 

700,000 applications approved so far

According to Sivakumar, the ministry has thus far authorised 700,000 applications for the hiring of foreign workers across several industries.

He said that more than 300,000 foreign workers have legally entered the country thanks to the approvals provided, helping to alleviate the labour shortage crisis.

The minister stated that the overall number of foreign workers would surpass pre-pandemic levels once the final 400,000 foreign workers successfully entered Malaysia.

Prime Minister Anwar Ibrahim said at a press conference that the Ministry of Home Affairs and the Human Resources Ministry had been directed to speed up the entry approvals of foreign workers, particularly in the agriculture, service, and construction industries. 

He stated that these three industries require special attention since a labour shortage there might affect production.

Sivakumar also said that the Human Resources Ministry would determine whether other industries also require foreign workers.

 

The One Channel System (OCS) 

According to the deputy secretary-general of operations for the ministry, Datuk Muhd Khair Razman Mohamed Annuar, the One Channel System (OCS) is currently being used to hire domestic workers from Indonesia.

He emphasised that the system would continue to be under the ministry's purview and would not be handed to the Home Ministry.

The Star published a report last week quoting the Indonesian envoy as saying that problems on the Malaysian side were to blame for the delay in OCS implementation.

However, the ambassador pointed out that the internal system of the embassy had processed roughly 1,600 job contracts, of which approximately 600 workers had arrived in the nation.

He added that there are already 1.34 million foreign workers in the nation who have valid visas.

To maintain business effectiveness, the Malaysian Employers Federation (MEF) requested that the management and recruiting of foreign workers, including foreign domestic workers, stay under the purview of the Human Resources Ministry.

In April, the procedure for taking on new foreign workers to Malaysia underwent adjustment, with the ministry taking the lead in managing the OCS.

 

Implementation of Employment Act Amendments to proceed as usual

Sivakumar stated that the amended Act would go into effect on January 1 as it was created in compliance with the International Labour Organization's recommendations.

Employers have urged the postponement of the modified Act's implementation. It was originally scheduled to go into effect on September 1 but was delayed until January 1 of the following year to guarantee a smooth transition.

The amendments included:

• Extension of the maternity leave entitlement from 60 to 98 days.

• Maximum work hours have been shortened from 48 to 45 hours.

• The Employment Act now applies to all employees regardless of wage.

• Seven days of paternity leave for fathers.

• Employers cannot terminate pregnant employees unless there is a breach of contract, misconduct, or business closure.

• Employers who threaten, lie or compel an employee to perform any task or prevent that person from leaving a workplace after work will be fined or jailed.

• Employers must put up a notice on sexual harassment for awareness purposes.

• The Director-General has the authority to investigate and resolve problems involving employment discrimination.

• Employees may now apply in writing for flexible working arrangements.