Lawyerment Quick Link - Homepage - Free Email - Message Boards - LawCrawler - Legal News - Legal Dictionary - Lawyers Jokes - Lawyers Directory - Newsletters - Legal Guide - Refer A Friend - Interesting Facts - Library - Downloads - >> more
|Legal Subjects > Employment Law > Hiring
HOW DO I EMPLOY A FOREIGN WORKER ?
The following guidelines are applicable for employment of foreign worker other than Indonesian 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 by submitting 5 copies of the KDN/PA.1/98 (Pin.1) form for manufacturing sector and KDN/PA.2/98 (Pin.4) form for agricultural sector.
These forms must be sent to the Ministry of Home Affairs in Kuala Lumpur.
If you do not receive a reply within 5 weeks after your submission, you are required to contact the Ministry of Home Affairs.
After approval has been obtained, you will then proceed to the Immigration Department to apply for Visit pass (Temporary Employment) or Pass Lawatan Kerja Sementara (PLKS).
To apply for Visit Pass (Temporary Employment), you must submit
For domestic servant the following documents are to be submitted :
Upon successful application, the Immigration Department will inform the Embassy of home country of the worker. The Embassy will then issue a VDR to the foreign worker.
After entering Malaysia, the worker is required to carry out a medical examination during a period of 1 to 2 months using the format issued by the Immigration Department and must be carried out at FOMEMA. The Immigration Department will then issue a Visit Pass (Temporary Employment) to the employer.
In Sabah, Sarawak and Federal Territory of Labuan, approval need not be obtained from the Ministry of Home Affairs but a license and approval quota to employ foreign workers must be obtained from the Department of Labour and Committee of Foreign Workers respectively.
Once the license and recruitment quota have been obtained, the employer is required to apply for Visit Pass (Temporary Employment) at the nearest Immigration Department. The documents required to submit such application are the same for application of Visit Pass (Temporary Employment) in Peninsular Malaysia.
An annual levy on foreign worker will be imposed to ensure that foreign worker is employed only when essential. The rates of levy on foreign worker involved in the agricultural sector and domestic servant are RM360 per year or RM30 per month and workers in the other sectors is RM50 per month. There will be a processing fee of RM10 for agricultural sector and domestic servant and RM50 for other sectors.
For renewal of the Visit Pass (Temporary Employment) for foreign workers, the following documents must be submitted to the nearest state Immigration Department :
For domestic servant the following documents are to be submitted for renewal of the Visit Pass (Temporary Employment) :
Social Security Organization (SOCSO) only covers Malaysian workers and permanent resident, thus employer and foreign workers need not contribute to SOCSO. Foreign workers are covered by the Workmen's Compensation Act 1952.
Effective from 1st August 1998, all foreign workers earning less than RM2,500 per month are required to contribute 11% of their monthly wages to the Employees Provident Fund while the employers are required to contribute RM5 per employee per month.
However, domestic servants who are employed to work in or connected with work in a private residence, including a gardener and valet and who are paid from the private account of the employer are exempted from making the compulsory contribution.