As someone who has had firsthand experience with recruiting foreign workers in Malaysia, I can attest to the importance of understanding the recruitment process. For those who are new to this process, it may seem daunting and overwhelming. However, gaining a clear understanding of what the process entails and its significance can help ease the stress and ensure a successful outcome.
In this part of the article, we will discuss the definition of the recruitment process and its importance. Factoring in the numerous regulations and requirements, it’s crucial to approach the recruitment process thoughtfully and strategically.
Definition of foreign worker recruitment process in Malaysia
The process of recruiting foreign workers in Malaysia involves various stages. It commences with obtaining a letter from the Department of Labour, JTKSM, followed by submitting applications for foreign worker quotas to MOHR and MOHA. Additionally, employers are required to pay levies, obtain insurance policies and a security bond.
Next, employers may choose to outsource recruitment to authorized agencies that follow the legal procedures and guidelines set by authorities. The selected agency may then hire sub-agents to facilitate the recruitment process.
Finally, employers are obligated to follow guidelines regarding VDR application process, FOMEMA Sdn Bhd Medical Examination Monitoring Agency assessment, Visitor Pass (Temporary Employment) or VP (TE) application processes post-employment selection.
Importance of understanding the foreign worker recruitment process
Understanding the foreign worker recruitment process is crucial for companies seeking to hire foreign workers in Malaysia. A comprehensive understanding of the various steps involved in the process can help ensure compliance with regulations and prevent costly mistakes. Moreover, businesses need to keep themselves updated with the latest changes in policies and procedures related to foreign worker recruitment in order to adjust their strategies accordingly.
In addition to a general understanding of the recruitment process, it is important for businesses to pay attention to specific details such as quota applications, levy payments, and visa applications. These factors can significantly affect a company’s ability to recruit foreign workers, and failure to comply with regulations or meet documentation requirements can result in fines or even legal action.
It should be noted that the recruitment process can be complex and time-consuming, which is why businesses often outsource this task to specialized recruitment agencies. However, it is still important for companies to have a basic understanding of the process so they can monitor and supervise agency activities.
To ensure success in hiring foreign workers in Malaysia, businesses must also beware of potential future changes in policies and procedures related to recruitment. As these changes may affect the entire hiring process from start until finish, companies that are well-versed on these updates will have an advantage over those who aren’t adequately informed.
As someone who has been involved in foreign worker recruitment in Malaysia, I know firsthand how complex the process can be. The pre-recruitment process, in particular, can be a daunting task for many employers. In this part of the article, we will explore the necessary steps involved in the pre-recruitment process. These include:
- Obtaining a letter from Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM)
- Applying for a foreign worker quota from both the Ministry of Human Resources (MOHR) and the Ministry of Home Affairs (MOHA)
- Navigating the intricacies of levy payment, insurance policies, and security bond
Understanding these steps is crucial for any employer looking to bring foreign workers into Malaysia to meet their workforce needs.
Letter from Jabatan Tenaga Kerja Semenanjung Malaysia
The process of recruiting foreign workers in Malaysia requires obtaining a ‘Letter from Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM)’ before applying for the necessary quotas and permits. This letter is issued by the JTKSM to companies that meet certain requirements, such as being registered with the Companies Commission of Malaysia or having a tax identification number. It confirms that the company is eligible to apply for foreign worker quotas and is required to be submitted along with other supporting documents during the application process.
Once the Letter from JTKSM has been obtained, companies can proceed with applying for foreign worker quotas from the Ministry of Human Resources (MOHR) and Ministry of Home Affairs (MOHA). The quotas are determined based on various factors, including the industry sector, type of work, and the company’s employment history. In addition to obtaining permits and approvals, companies also need to make levy payments, obtain insurance policies for their workers, and provide a security bond.
Outsourcing to recruitment agencies is preferred during this process as they are familiar with local laws and regulations, making it easier for companies to navigate through legal complexities. Sub-agents also play a significant role in sourcing potential candidates and ensuring compliance throughout the recruitment process.
It is important to note that visa applications require approval from relevant authorities like Visa With Reference (VDR) application process’ within company-sponsored programs. Foreign Workers’ Medical Examination Monitoring Agency (FOMEMA) Sdn Bhd needs to be consulted during post-recruitment medical examinations, while Visitor Pass (Temporary Employment) or VP (TE)’ application process needs authorization.
It should be noted that going through this lengthy process could have potential advantages and disadvantages to businesses operating in Malaysia. Based on current trends in these recruitments coupled with recent legislation changes at MOHR jurisdictional levels which tend towards general idiosyncrasies subject only to few standards state-wide; without credible disputes resolution systems(Dispute resolution institutions in most cases, are mostly time-consuming, expensive and may not bring a win-win solution to the parties involved), an astute company leader must carry out due diligence before embarking on this process.
Applying for a foreign worker quota from the Ministry of Human Resources
To apply for a foreign worker quota from the Ministry of Human Resources (MOHR), employers in Malaysia must first obtain a letter from Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM) confirming their need for foreign workers. Employers can then submit their application through the online Foreign Workers Application System (SPPA) or manually at the nearest MOHR office. The application requires several supporting documents, including company registration, business license, and evidence of financial standing. Once approved, employers must pay the prescribed quota fee to secure their allocated quota for foreign workers.
It is worth noting that quotas are subject to periodic reviews and may be reduced or suspended if there are any breaches in compliance with labor laws. Therefore, employers are advised to maintain good standing with regulatory bodies and ensure timely renewal of licenses and permits to avoid jeopardizing their ability to hire foreign workers.
In addition, employers should familiarize themselves with the latest policies and requirements set by MOHR as changes may occur unexpectedly. Maintaining an ongoing relationship with MOHR personnel may help employers stay updated on policy changes and resolve any issues quickly.
To avoid discrepancies or misunderstandings in applying for a foreign worker quota from MOHR, employers should seek legal assistance from reputable consultancies or lawyers specializing in immigration law. Such information can potentially save time and money while ensuring compliance with all legal obligations.
Employers who do not comply with these guidelines risk facing penalties, fines, or additional time-consuming processes that will delay obtaining a foreign worker quota. Therefore, understanding this process is important before starting recruitment efforts.
Applying for a foreign worker quota from the Ministry of Home Affairs
Recruitment agencies are preferred when outsourcing the recruitment process to manage the application process with greater efficiency. In Malaysia, many reputable recruitment agencies specialize in providing workers across various industries. Sub-agents play an important role in identifying potential candidates by providing comprehensive background checks.
It is essential to track the Visa With Reference (VDR) application process after successful candidate selection and apply for medical checks through Foreign Workers’ Medical Examination Monitoring Agency (FOMEMA) Sdn Bhd. The Visitor Pass (Temporary Employment) or VP(TE) application process follows suit.
To expedite quota approvals from MOHA, employers should ensure that applications adhere to state-specific guidelines and timeline requirements. Moreover, it would be best if employers worked closely with recruitment agencies or lawyers experienced in processing live-in domestic maid work permit applications as these require additional legal support that can help streamline this complex application process.
Levy payment, insurance policies, and security bond
Foreign worker recruitment in Malaysia requires the fulfilment of various legal obligations, including Levy Payment, Insurance Policies, and Security Bond. These obligations ensure the protection of employers and foreign workers in case of any untoward incidents.
To understand these legal obligations better, we have created a table to help you navigate through them with ease.
|Levy Payment||An obligation where employers must pay a monthly levy for each foreign worker that they hire. This fee varies depending on the sector and skill level of the employee.|
|Insurance Policies||Employers are required to purchase insurance policies for their foreign workers. These policies cover hospitalisation, surgical expenses, and repatriation expenses.|
|Security Bond||An obligation requiring employers to provide a security bond as an additional guarantee against default by the foreign worker. The bond amount is based on the nationality of the employee and ranges from RM500 to RM2500 per worker.|
It is important to note that these legal obligations ensure that both employers and employees are protected against any liabilities.
It is advisable for employers to keep themselves updated with current policies related to Levy Payments, Insurance Policies, and Security bonds. Non-compliance or failure to fulfil these requirements can result in hefty fines or even imprisonment.
Navigating the recruitment process can be overwhelming. However, outsourcing to recruitment agencies is a popular option due to their expertise in handling the complexities of the recruitment process. In Malaysia, recruitment agencies play a crucial role in connecting foreign workers with potential employers. To gain a better understanding of the recruitment process, it’s important to examine the recruitment agencies in Malaysia and the role that sub-agents play in the process. Let’s take a closer look at these sub-sections.
Why outsourcing to recruitment agencies is preferred
Recruiting foreign workers in Malaysia requires compliance with strict regulations and procedures set by the government. Therefore, outsourcing the recruitment process to authorized agencies is preferred to ensure a smooth and hassle-free process. These agencies have extensive knowledge of the legal framework, can handle paperwork efficiently, and can provide end-to-end support throughout recruitment.
In addition, outsourcing minimizes costs as it eliminates the need for an in-house HR team to handle the potentially complex and time-consuming process. Agencies also maintain good relationships with various authorities that may be needed during recruitment. This increases speed and efficiency in obtaining approvals from relevant departments.
Another advantage of outsourcing is the guarantee of accessing a pool of pre-screened candidates that meet employment criteria set by Malaysian law, reducing uncertainty in candidate selection.
Outsourcing recruiters work hand-in-hand with sub-agents, who act as intermediaries connecting employers to pools of potential employees across various geographic locations and fields. After identifying suitable candidates, recruiters conduct thorough interviews, medical checkups, and other necessary checks before finalizing employment contracts on behalf of their client organizations.
Partnering with a reputable agency like ACCES Employment Services ensures that employers are compliant with all regulatory requirements while saving time and resources throughout the recruitment process.
Recruitment agencies in Malaysia
Recruitment agencies facilitate the process of identifying candidates with the necessary skills and qualifications required by the employer.
They also assist in coordinating interviews between employers and shortlisted candidates.
In addition, recruitment agencies manage the legal requirements and paperwork involved in obtaining work visas and permits for foreign workers.
It is worth noting that almost all recruitment agencies in Malaysia perform these functions primarily to comply with government regulations. These regulations are intended to protect both employers and employees. Indeed, since violation of these regulations could lead to fines or suspension of operations, most Malaysian employers opt to delegate this responsibility to recruitment agencies.
However, not all recruitment agencies operate at the same level of efficiency or effectiveness. It is advisable for employers seeking to engage their services must do a background check on their history, reputation, and reliability through online research or by consulting with industry experts.
Role of sub-agents in the recruitment process
Sub-agents play a vital role in the foreign worker recruitment process in Malaysia by bridging the gap between recruitment agencies and employers. These sub-agents act as intermediaries, assisting with initial processing, documentation and follow-up communication. They also provide essential services such as translation services for foreign workers’ documents and language assistance during interviews.
In addition to connecting with potential employees and verifying their credentials, sub-agents can assist in checking work permits, visas and ensuring the compliance of government guidelines. Sub-agents are known for their regional connections that allow them to find potential employees from remote areas.
It is important to note that the use of sub-agents comes with extra fees that have to be accounted for in overall recruitment costs.
As someone who has gone through the process of hiring foreign workers in Malaysia, it’s important to understand the post-recruitment process. After hiring foreign workers, there are several steps that employers in Malaysia need to take to ensure that their workers are legally allowed to work and to monitor their health.
In this section, we will dive into the Visa With Reference (VDR) application process, which is required for foreign workers to enter Malaysia. We’ll also take a look at the Foreign Workers’ Medical Examination Monitoring Agency (FOMEMA) Sdn Bhd and the required medical exam for foreign workers. Finally, we’ll discuss the Visitor Pass (Temporary Employment) or VP (TE) application process, which is necessary for any foreign worker who needs to leave and re-enter Malaysia for work purposes.
Visa With Reference application process
For foreign workers to work in Malaysia, they need to go through a visa with reference (VDR) application process. This process involves obtaining permission from the Malaysian immigration authorities to enter the country for work purposes. Here is a step-by-step guide on how to go through this process:
- Approval from the Immigration Department – The applicant’s employer needs to get approval from the Immigration Department of Malaysia before applying for a VDR. This can be done online or by submitting an application form at the nearest immigration office.
- Applying for a VDR – Once the employer receives approval, they can submit an application for a VDR at any Malaysian embassy or consulate abroad. The completed form and supporting documents must be submitted to the embassy or consulate along with fees and charges.
- Wait for Processing – After submission, embassy officials will process and review the application before issuing it on approval.
It is essential to note that all foreign worker visas are temporary and subject to renewal as required by Malaysian immigration laws.
One important aspect of this process is that employers have been given online access to track all stages of their applications. All relevant information regarding VDR applications must be submitted within 30 days so that authorities don’t reject them.
Foreign Worker Recruitment Process in Malaysia can take between two weeks and six months depending upon situations like document verification and issuing visa processes.
Foreign Workers’ Medical Examination Monitoring Agency Sdn Bhd
Foreign workers in Malaysia are required to undergo a medical examination as a part of the post-recruitment process before they begin working. The responsibility for overseeing this process falls on the foreign workers’ medical examination monitoring agency (FOMEMA) Sdn Bhd, which is tasked with ensuring that all foreign workers receive their medical examinations and subsequent health screenings before they begin working.
FOMEMA plays a crucial role in ensuring the health and safety of both the foreign workers and Malaysian citizens. The agency is responsible for verifying that each worker undergoes thorough medical testing, including tuberculosis (TB) screening and tests for other infectious diseases. FOMEMA also verifies that each worker has purchased the necessary insurance policies required to work in Malaysia.
One unique aspect of FOMEMA’s role is that it requires employers to submit documentation proving that their foreign workers have undergone regular health check-ups throughout their employment. This requirement helps ensure that any potential health issues are detected early and addressed promptly.
Employers must comply with FOMEMA’s guidelines to obtain a valid work permit for their foreign workers. Failure to comply with FOMEMA’s guidelines can result in significant fines or even deportation of the foreign worker.
Visitor Pass or VP application process
The process of applying for a Visitor Pass (Temporary Employment) or VP (TE) is an essential step in the recruitment of foreign workers in Malaysia. This pass allows the worker to legally work in Malaysia for a specific period, depending on the duration specified by their employer. Below is a 3-step guide on the process.
- Employers must submit a completed application form to the Jabatan Imigresen Malaysia (JIM) and provide the necessary documents, including passport copies of the workers, employment contract, and their medical reports from FOMEMA.
- Once submitted, JIM will assess the application and may request additional information from employers before approving or denying it. If approved, employers will need to obtain an Approval Letter for Immigration Clearance before arranging for travel arrangements which includes flight tickets, accommodation arrangements etc needed.
- Upon arrival in Malaysia, workers must undergo a medical screening and file for Student Pass endorsement at any designated Malian Immigration office during or within 7 working days after arriving in Malaysia.
Pro Tip: Applying early is highly recommended as it can take time to get approval and secure all necessary documents required for your workers to work legally in Malaysia.
Looking back at my research on the foreign worker recruitment process in Malaysia, I can confidently conclude that it has both advantages and disadvantages. On one hand, the ease of recruitment processes makes it attractive for industries with labor shortages. However, the possibility of migrant worker exploitation cannot be ignored. In addition, the constantly evolving regulations regarding migrant worker recruitment raises concerns for future recruitment processes. As I wrap up my research, I can’t help but wonder what the future outlook holds and what potential changes may come in the recruitment process.
Future outlook and potential changes in the recruitment process.
Considering the ever-evolving and dynamic nature of recruitment processes, staying up-to-date with the future outlook and potential changes in the foreign worker recruitment process in Malaysia is important.
One possible change that should be closely monitored is increasing visa costs due to a possible revision to current visa policies. Led by Malayan Minister of Human Resources Datuk Seri Richard Riot Jaem, there have been recent calls for increases in levies, which could lead to higher costs for hiring foreign workers.
Aspects of Malaysian economic policy that would impact future developments are also noteworthy with significant changes expected with the country’s aging population and decreasing number of new workers.
There is likely to be an increased emphasis on industries with high local yields such as manufacturing and tourism among others. This may result in tighter quota applications for certain sectors such as those low-paying or manual jobs and more permissive for highly-skilled job opportunities.
Additionally, it may be beneficial to prioritize involvement in various cooperative initiatives between Malaysia and its partners across regions such as bilateral labor agreements. At present, MOHR collaborates actively with partner countries such as Indonesia, Cambodia, Vietnam, Nepal, Laos People Democratic Republic (PDR), Philippines, Thailand and India which had resulted in efficient cooperation both ways through regulation compliance harmonization efforts.
It is crucial not to ignore the significance of technological advancements happening globally thus keeping ourselves informed about adoption trends technologies locally can help applicants better understand the incumbent qualification requirements facilitating swifter processing times particularly within recruiting practices.
There have been a few cases where unimplemented policies have created market imbalances where some industries struggled more than others; however, knowing historical insights like this can help anticipate risks during any industry transition phases caused by regulation updates or other events associated with workforce demands or constraints that emerge from evolving global economic realities.
FAQs about Foreign Worker Recruitment Process In Malaysia
What is the Employment Act and how does it affect the foreign worker recruitment process in Malaysia?
The Employment Act of 1955 was amended in 2012, formalising the practice of outsourcing foreign workers through recruitment agencies rather than hiring them directly. Work permits are now attached to the recruitment agents rather than the companies to which the foreign workers are outsourced under this system. This arrangement allows companies to avoid collective bargaining agreements and to hire workers for specific periods before returning them to the recruitment agency.
What is the role of the Ministry of Human Resources (MOHR) and Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM) in the foreign worker recruitment process in Malaysia?
To hire foreign workers, companies must first obtain a letter from JTKSM, confirming that they cannot hire Malaysian workers. With this letter, the company can then apply to MOHR for a foreign worker quota. If approved by the Ministry, the company can apply to the Ministry of Home Affairs (MOHA) for the Ministry’s foreign worker quota, usually through the Foreign Workers Centralized Management System (FWCMS). After approval, the company must pay the workers’ levy, necessary insurance policies, and a security bond.
Why do Malaysian companies prefer to use outsourcing agencies when recruiting foreign workers?
Internalising the recruitment process of foreign workers is logistically challenging and economically inefficient for companies. Instead, they enter into a contract with a recruitment outsourcing agency, which locates foreign worker candidates from the source country and becomes the workers’ direct employers. The agency typically uses agents based in the targeted countries who rely on informal sub-agents to facilitate the process as intermediaries between prospective workers. This arrangement makes recruitment more manageable and cost-effective for companies.
What is the role of the outsourcing agency in the foreign worker recruitment process?
The outsourcing agency becomes the foreign workers’ direct employer and is responsible for securing their services. They use agents based in targeted countries to find worker candidates and sub-agents to facilitate the process as intermediaries between prospective workers. They help with paperwork, passport applications, bank account opening, medical examinations, and transportation to the airport for future migrant workers. They may also act as guarantors for workers who require credit in some cases.
What is the role of the Foreign Workers Medical Examination Monitoring Agency (FOMEMA) Sdn Bhd in the foreign worker recruitment process in Malaysia?
Once the workers have arrived in Malaysia, they have 30 days to undergo a medical examination by FOMEMA. The employer usually arranges the medical examination. After the workers have received medical clearance, the employer can apply for a temporary employment pass known as the Visitor Pass (Temporary Employment) or VP (TE). Once they have the VP (TE), the workers can begin working in Malaysia.
What is required for foreign workers to legally work in Malaysia?
Foreign workers must follow the foreign worker recruitment process outlined by MOHR and MOHA. They must undergo a medical examination by FOMEMA and receive medical clearance before the employer can apply for a temporary employment pass known as the VP (TE). Once they have the VP (TE), they can begin working in Malaysia.