31 Dec 2018
MALAYSIA: 20% of Overseas Workers’ Salaries to be Retained by Employers Pending Contract Completion
Companies should hold back 20% of the basic salary payments accruing to overseas staff pending completion of their contracted employment periods, according to a new advisory notice issued by the country’s Human Resources Ministry (HRM). The move is intended to reduce the financial losses resulting from foreign workers skipping the country while still having outstanding work commitments. The proposal is currently under consideration by the Labour Advisory Council, with no date yet announced for its formal adoption.
In a related move, the overseas worker recruitment process is set to migrate to a wholly-online system. This will see the HRM responsible for handling all applications, while the Ministry of Home Affairs will have the final say on individual approvals and rejections.