What new approval is required for employers hiring foreign workers?

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Employers Must Obtain Director-General Approval to Hire Foreign Workers

Under the amended Employment Act 1955, employers are now required to secure approval from the director-general of the Department of Labour Peninsular Malaysia (JTKSM) before they can hire foreign workers. This new stipulation is a key component of the legislative changes aimed at enhancing labour standard compliance. The amendment, specifically Section 60K (4), serves as a preliminary screening mechanism.
Requirement for Director-General Approval

The revised Employment Act 1955 mandates that any employer seeking to engage foreign labour must first obtain explicit permission from the director-general of JTKSM. This approval process is designed to ensure that businesses adhere to established labour standards before being permitted to employ individuals from overseas. This measure is part of broader amendments that align with International Labour Organisation (ILO) conventions.
Purpose of Initial Screening

Section 60K (4) of the amended Act functions as an initial screening process. Its primary objective is to verify that employers have a demonstrable history of complying with labour regulations. By implementing this screening, authorities aim to prevent companies with poor labour practices from hiring foreign workers, thereby promoting a more equitable and regulated employment environment.
Enforcement of Amended Act

The enforcement of these amendments to the Employment Act 1955 commenced on January 1, 2023. This date followed a previous postponement from September 1, 2022, after industry calls for an extended deferral period. The Human Resources Minister, V. Sivakumar, affirmed the implementation, highlighting the importance of the amendments, many of which are based on ILO conventions.

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What new approval is required for employers hiring foreign workers?

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