2.

0 LAW AND REGULATION OF FORINGN WORKERS FOR MALAYSIA

In Malaysia, employee will regulate a few law and the main applicable legislations in Malaysia.
For example is Employment Act 1955 (Act 265), Employees Provident Fund Act 1991 (Act 452),
Industrial Relations Act 1967 (Act 177), Workmens Compensation Act 1952 (Act 273),
Immigration Act 1959/63 (Act 155), Employment (Restriction) Act 1968 (Act 353), Employment
(Restriction) (Employment Permit) Regulations 1969.
To work at Malaysia, foreign employee must be going through two stages which are
application for a post and application for employment pass. We can call application for
Employment Permit or Pass. Firstly is application for a post. The first stage is for a company to
submit its application for expatriate posts. There are six authorized bodies or agencies appointed
by the Malaysian Government to evaluate and approve the expatriate posts and they are
Malaysian Industrial Development Authority (MIDA), Multimedia Development Corporation
(MDeC), and Public Service Department (PSD), Central Bank of Malaysia (BNM), Securities
Commission (SC) and Expatriate Committee (EC). For Expatriate Committee (EC) will be
assigned for employment in private and public sectors other than MIDA, MDeC, PSD, BNM and
SCs jurisdiction.
For a second step are applications for employment pass. An employment pass is issued to the
expatriate to enable him to stay and work legally in Malaysia. Before the employment pass can
be issued, the employment of the foreign worker must be approved by the Expatriate Committee
or the relevant regulatory agency. An employment pass is valid for a period of not exceeding two
years (section 11(2) of the Employment (Restriction) Act 1968). A temporary employment pass
is for unskilled or semi-skilled workers in the manufacturing, agriculture, construction and
services fields. If the employee terminated without reasonable courses, workman can make
complain at Director General for Industrial Relations and will be under section 20 (1) of the
industrial act 1967. The representations may be filed within sixty (60) days of the dismissal at the
office of the Director General nearest to the place of employment from which the workman was
dismissed.
Tax for to the foreign workers will levied if his stay not more than 182 days in a year, he
is deemed to be a non-resident and the tax rates is 25 percent, he cannot enjoy the relief. If they

stay in Malaysia less than sixty day, then any income, fee, commissions or bonus received will
not be taxed. If the foreign employees stay is more than 182 days in a year, then he is a resident.
A resident will be taxed at graduated rate of 0% to 25% and the rate of which depends on his
chargeable income. The foreign employee will also enjoy the tax incentives that will reduce his
net taxable income considerably.

Registerati
on

Whitening

Forgivenes
s

Monitoring

Enforceme
nt

Deportatio
n

This program from ministry, they call is 6P. This diagram shows the process rule and
regulation for the foreign worker in Malaysia. Almost the foreign workers does not comply rules
and regulation, ministry of Malaysia tightening law and regulation with respect to immigrants.
The first stage of the registrations implemented for the purpose of registering illegal immigrants
in Malaysia. From this method, the employers of illegal immigrants the opportunity to obtain
information, other than personal records and biometric data PATI is a core element for the
rational implementation of this program. This action is in line with the Government's initiative to
establish a comprehensive database of every foreigner in Malaysia, enabling the monitoring
process to be implemented more effectively, including efforts to involve the solution in
addressing issues of identity and document fraud that had been easily faked by no biometric
records. For a seconds step is whitening. Whitening is a process which serves to filter out any
illegal immigrants who are registered.
If the foreign worker qualifies set for working in the appropriate field, the employee will
be given to employers who qualified in accordance with the priorities and fields that have been
set by the ministry or regulatory agency. Forgiveness, where illegal immigrants who do not
appear to be bleached or immigrants who voluntarily choose to return to their home countries
will each be pardoned and allowed to return home on their own costs without any form of action.
However, forgiveness is limited to illegal immigrants who commit immigration offenses.

Monitoring to be implemented before the integrated enforcement operations against illegal

immigrants implemented on a large scale throughout the country. This initiative will be driven
through the inspection to the employer's premises to advise other at the same time explaining the
implications of legal action if found to protect workers are illegal immigrants who are not
registered with the 6P program. Enforcement fifth stage which is the stage where integrated
enforcement operations will be carried out on a large scale and moved in order to detect and
arrest illegal immigrants and employers identified remains committed immigration offenses.
Lastly is deportation of illegal immigrants who have been captured through the
integrated enforcement operations to be subject to litigation before expelled from the country.
Due to the cost of the eviction process is incurred with the provisions of the Government, any
illegal immigrants who were expelled will equally be blacklisted from permission to re-enter the
country.