New Guidelines on the Employment of Foreign Workers

   

The Labor Department has clarified that such prior approval applies to all new applications for non-Malaysian and non-permanent residents who require immigration passes to work in Malaysia. Among other categories, this includes expatriates under the Employment Pass and professionals under the Professional Visit Pass.

Applications for prior approval need to be submitted online to the Labor Department. The Director General of Labor’s approval is subject to the conditions provided by the EA, i.e. the Director General of Labor must be satisfied that (i) the employer has no outstanding matters under the EA and the laws relating to social security, housing and accommodation standards, minimum wages and (ii) the employer has not been convicted of any offences under the anti-trafficking law in persons and forced labor.

   

The approval by the Director General of Labor will be required before an employer can commence the subsequent application process with the Immigration Department to procure the relevant passes. Further guidance is pending by the Immigration Department and the Director General of Labor on the implementation of the prior approval requirement.

At the time of writing this, the Immigration Department has not yet released any guidance on the implementation of this new procedure, and applications are still being accepted without the prior approval by the Labor Department.

   

The employer´s notice requirement towards the Director General of Labor has been expanded in light of the amended EA, with employers now being required to notify and furnish the Director General of Labor with the particulars relating to the foreign employee within 14 days from the date of employment. 

   

Employers are also required to notify the Director General of Labor of the termination of foreign employees within 30 days of the termination, regardless of their monthly salary or nature of work.

   

Failure of employers in complying with the prior approval constitutes an offence under the EA. Sanctions include fines not exceeding RM100,000 or imprisonment for a term not exceeding five years, or both.