USEFUL INFO

Work Force Criteria

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Terms and Conditions

1.     REGISTRATION OF PLACE OF WORK UNDER SECTION 63A OF THE EMPLOYMENT ACT 1955

                         I.     Employers are obligated under Section 63A of the Employment Act 1955 to register their place of work with the Human Resources Department, Peninsular Malaysia.

                       II.     To register, an employer shall,

                      III.     apply manually at the nearest Human Resources office, or 

                      IV.     access the website at http://www.mohr.gov.my and complete the Workplace Registration Form online.

                       V.     The Registration Number and Letter of Verification in respect of Registration of Place of Work will be issued.

                      VI.     An employer must fill up the registration number in the space provided and attach a copy of the Letter of Confirmation of Registration.

                    VII.     Example of Registration No : 1100107799

2.     FOREIGN WORKERS COMPENSATION INSURANCE SCHEME (SPPA)

                         I.     Under the Workersâ€?Compensation Act 1952, an employer must ensure that a legitimately hired foreign worker is insured with any one of the insurance companies appointed to the panel of the Foreign Workers Compensation Insurance Scheme (SPPA).

                       II.     Insurance companies listed in the panel of the Foreign Workers Compensation Insurance Scheme as at 31^st July 2005 are:

a)     Malaysian Assurance Alliance Berhad

b)     Lonpac Insurance Bhd

c)     Mayban General Assurance Berhad

d)    Kurnia Insurans (Malaysia) Berhad

e)     Allianz General Insurance Malaysia Berhad

f)      Takaful Nasional Sdn Berhad

g)     Syarikat Takaful Malaysia Berhad

h)    Malaysia National Insurance Berhad

i)      Berjaya General Insurance Berhad

j)      Tahan Insurance Malaysia Berhad

                      III.     In the case of fresh applications, an employer must procure coverage for the worker to be brought in from any one of the insurance companies listed in the panel of Foreign Workers Compensation Insurance Scheme. A copy of the temporary cover note must be attached.

                      IV.     In the case of a supplementary application by an employer the SPPA insurance policy in respect of the foreign worker under current employment must be annexed together with the Temporary SPPA Insurance Cover Note.

                       V.     An employer dealing with more than one insurance company must make separate entries in the columns provided.

3.     CERTIFICATE FROM THE HUMAN RESOURCES DEPARTMENT TO THE EFFECT THAT THE EMPLOYER HAS AVAILED HIMSELF OF THE JOB CLEARING SYSTEM (JCS) TO RECRUIT WORKERS LOCALLY

                         I.     The Job Clearing System (JCS) is a computer generated service that is handled by the HRD to assist job seekers in finding jobs and to assist employers in recruiting workers from among the locals. Either party may utilise this service on-line via its URL http://www.mohr.gov.my/jcs.

                       II.     In order to obtain the Certificate of Registration, an employer must have advertised the relevant vacancy with the JCS either on-line or by calling at the nearest HRD office.

                      III.     The HRD will issue a Letter Verifying Registration with JCS upon being satisfied either that the employer has through this service made every effort to recruit workers locally or that 30 days have elapsed since the employer’s registration with JCS.

4.     CERTIFICATE OF REGISTRATION OF FOREIGN WORKER UNDER SECTION 60K OF THE EMPLOYMENT ACT 1955 (Required when applying for additional foreign workers)

                         I.     Under this section, an employer must register legitimately employed foreign workers with the Human Resources Department, Peninsular Malaysia.

                       II.     To effect registeration, an employer must –

a. call personally at the nearest HRD office to manually fill in the Foreign Workers Registration Form under  Section 60K of the Employment Act 1955, or 

b. download the Foreign Workers Registration Form under Section 60K of the Employment Act 1955 from the website at http://www.mohr.gov.my, fill in the form manually and submit it to the nearest HRD office.

                      III.     A Certificate of Registration of Foreign Worker under Section 60K will be issued upon the HRD receiving the saidform. A copy of the certificate must be annexed.

         5.     CONTRACT OF SERVICE FOR SAME JOB CATEGORY:

                         I.     The Contract of Service must embody the terms and conditions currently applicable to local as well as foreign workers for the same job category.

                       II.     For example: Contract of Service for Local Production Operators and Contract of Service for Foreign Production Operators.

                      III.     The Contract of Service that must be annexed are as follows:

1.                  applicable to existing local workers

2.                  applicable to existing foreign workers
(Required  in case of applications for more foreign labour workers)   

6.     INFORMATION ON CURRENTLY EMPLOYED WORKERS OF ALL CATEGORIES

Under the Employment Act 1955 an employer must maintain a Register and a database in respect of hired workers.

7.     INDUCTION COURSES FOR FOREIGN WORKERS BROUGHT IN (NOT APPLICABLE TO FOREIGN WORKERS FROM INDONESIA)        
The National Vocational Training Council (MLVK) of the Ministry of Human Resources issues the list of foreign workers who successfully completed and passed the Induction Course for Foreign Workers conducted in their respective countries of origin. Only foreign workers who have passed the Induction Course and recognised by the MLVK will be allowed to be brought in to work in Malaysia.

8.     FOREIGN WORKERS ORIENTATION COURSE IN MALAYSIA

(Required for applications for additional foreign workers)

                         I.     The Orientation Course is compulsory for all foreign workers legitimately employed between 1^st January 2004 to the present. Conducting the Orientation Course is a prerequisite for employers applying for additional foreign workers.

                       II.     Employers wishing to conduct the Orientation Course must notify the HRD of their intention to do so by notifying the date, venue and essential details of their employees attending. The Orientation Course Module consists of matters relating to the immigration laws, crime, work and Malaysian culture.

                      III.     The HRD will issue the Foreign Workers Orientation Course Verification Letter to employers whose foreign workers have successfully completed the course.

DURATION THE FOREIGN WORKERS ARE ALLOWED TO WORK

Foreign workers are allowed to work for only a period of 3 years and their permit may be extended from year to year until the fifth year at the request of the employers.

EXTENSION AFTER THE FIFTH YEAR

After the fifth year, employers may apply to extend the work permit of their foreign workers who are considered skilled workers. However, the skills of a foreign worker are determined through a test conducted by the National Vocational Training Council (NVTC) at the Ministry of Human Resources, which will enable the foreign worker concerned to work in this country for a period exceeding five years.

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The Fees and Charges  

The Fees and Charges are compulsory by the Malaysian Government Law that required for the employment of foreign workers and yearly renewal. The payment shall be made to “Ketua Pengarah Imigresen Malaysia�by Banker’s Draft. Other Fees required payable to “Fomema Sdn Bhd�for the workers Medical Examination of RM 180.00 per worker for Male and RM 190.00 per worker for Female respectively. Insurance Guarantee and Foreign Workmen Compensation Scheme are also compulsory under the Worker’s Compensation Act 1952. These charges are subjected to the Employer’s preference of Bank or Insurance panel’s services.

Fees charged above as per worker

Effective 1st April 2009, The Government Levy shall be paid by the employer every year and not to be deducted from the employee's salary. Other Fees shall be also borne by the Employer.

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