KUALA LUMPUR – Blacklisting employers who fail to provide jobs or pay wages to their foreign workers without a proper investigation is unfair, an employers’ group has said of the decision to punish companies over non-existent jobs.
Malaysian Employers’ Federation (MEF) president Datuk Syed Hussain Syed Husman said some employers may genuinely be unable to provide employment or pay salaries due to reasons beyond their control.
Instead, he suggested that employers facing financial difficulties should receive assistance to sustain their businesses, rather than being subjected to penalties and blacklisting.
“Employers that bring in foreign workers are duty-bound to provide work or pay their wages. It would not be fair to the foreign workers if they were not provided work or pay.
“However, such action (the government’s decision to blacklist) will likely cause such employers to cease business and existing employees to lose their jobs.
“The government needs to investigate and find out the reason why the company is not able to provide work or pay and then only decide whether to blacklist them or not allow them to renew their foreign workers’ Temporary Work Visit Pass (PLKS),” he told Scoop.
Syed Hussain was asked about the home and human resources ministries’ decision to blacklist an employer in Pengerang, Johor, which had brought in foreign workers but did not employ them.
The company has been blacklisted from applying for new migrant labourers, as well as from renewing temporary working passes for existing workers.
The company’s deceit came to light after 171 Bangladesh nationals with valid work permits were filmed walking en masse to a police station to lodge reports last month, claiming that they had been in the country for over three months but their agents had yet to find them any jobs.
Syed Hussain also suggested that an equitable formula be crafted for situations in which the initial employer, who brings in foreign workers but cannot provide employment, is compensated by the second employer for costs associated with bringing in the workers.
“It is a known fact that the costs of hiring legal foreign workers can be very expensive, with the total cost of hiring between RM20,000 and RM25,000 per worker.
“However, the government is mooting a penalty of RM30,000 if employers fail to provide jobs to foreign workers. It would be a better win-win situation if the government could come up with this formula,” Syed Hussain added.
He was referring to the proposal by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani to fine employers up to RM30,000 per worker brought in but not given a job.
Syed Hussain also recommended the government consider exploring alternative measures to support companies that are genuinely facing challenges.
“One viable option is to permit the transfer of foreign workers’ quotas to employers in sectors experiencing shortages, particularly in industries like plantations and agriculture.
“Under the transfer of quotas mechanism, when one sector reaches full capacity, employers have the option to transfer both quotas and workers to other sectors,” he said.
On January 16, Home Minister Datuk Seri Saifuddin Nasution Ismail and Human Resources Minister Steven Sim announced that foreign workers will be allowed to move to new employers who needed workers in certain sectors such as plantations and agriculture.
This will also allow foreign workers to cross sectors and find jobs, especially if the foreign worker quota in some sectors is already filled. – January 18, 2024
