Malaysia warns employers to follow levy policy

Malaysian employers who force their foreign workers pay employment levy imposed by the government could be cited under the country’s Free Act 1951, according to Deputy Human Resources Minister Ismail Abd Muttalib.
Kuala Lumpu​r (VNA) – Malaysian employers who force theirforeign workers pay employment levy imposed by the government could be citedunder the country’s Free Act 1951, according to Deputy Human Resources MinisterIsmail Abd Muttalib.

The ministry has made it clear in thepast that employers were legally bound to commit to the Employers Undertakingdocument, which they signed before they were permitted to hire foreign workers,the Malaysia-based New Straits Times reported.

Aside from the levy obligation,Malaysian employers must also adhere to other conditions when employing foreignworkers.

The minister asked foreign workers to report to the ministry if theirbosses demand them to pay the levy themselves.

Those who fail to do so would beasked to refund the amount deducted from their workers’ wages back to them andthe department would invoke Section 24 of the Employment Act 1995.

The levy system was introduced on January 1 this year to improve themanagement of foreign workers, including limiting their employment to 15percent of the country’s total workforce by 2020.

The new levy policy was initiallyscheduled to come into effect in early 2017 but was delayed for one year afterappeals by employers.

The levy for foreign workers imposedby Malaysia’s Immigration Department on manufacturing, construction andservices sectors is fixed at 1,850 MYR per year (453 USD), while that foragriculture and forestry sectors is 640 MYR (nearly 157 USD).-VNA
VNA

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