Gov't Allows Rehiring of Foreign Workers, but with Conditions

Human Resources Minister Datuk Seri M. Saravanan stated that employers are permitted to rehire retrenched foreign workers. Still, they must give priority to Malaysian workers in filling job vacancies.

He said foreign workers could also be rehired in industries which have not received encouraging response from Malaysian workers. But, the rehiring of foreign workers is subject to specific conditions. 

In a statement, Saravanan said that only foreign workers who are still in Malaysia, with valid work permits can be rehired, in the same industry that they have worked before. 

The minister said that employers should also make sure that the foreign workers who they want to re-employ have undergone Covid-19 screening. He added that employers can access the MYEG website at www.myeg.com.my to see the list of foreign workers that have been tested for Covid-19. 

The construction, plantation and agriculture sectors are the only sectors that are allowed to hire foreign workers.

He also reiterated numbers of retrenched workers. As of July 2020, the Human Resources Ministry found that 67,068 Malaysian workers and 4,753 foreign workers have been laid off.

The minister said the government had taken several steps, including introducing the hiring incentive and training assistance programme or PenjanaKerjaya starting June 15 to help retrenched workers.

On June 22, Saravanan announced the ministry's decision to suspend foreign workers' intake until the end of this year to increase employment opportunities for Malaysians. But, several private employment agencies responded to that announcement by urging the ministry to review the decision.

Recently, the Human Resources Ministry announced that the government had decided that only three sectors will be allowed to hire foreign workers. The three areas are the construction, plantation and agriculture sectors. The restriction aims to cut the nation's dependence on foreign workers.

The Human Resources minister also revealed that some employers terminate their workers without notifying the Labour Department. 

The minister cited Section 63 of the Employment Act 1955, which clearly stated that employers who carry out retrenchment, be it permanent or temporary retrenchment, voluntarily and also salary reduction, must fill an employment notification Retrenchment Form (PK Form) and send it to the Labour Office at least thirty (30) days before termination or salary reduction.

Any employer who fails to comply with this matter is committing an offence according to Section 63 of the Employment Act 1955 and shall be liable, on conviction, to a fine not exceeding RM10,000 for each offence.

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Source: New Straits Times

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