Employer Alert: New Updates on Hiring Foreign Workers in Malaysia

Recently, the Expatriate Services Division (ESD) announced that the Department of Labour Peninsular Malaysia (Jabatan Tenaga Kerja Semenanjung Malaysia - JTKSM) has enhanced the initial approval process for hiring foreign workers under Section 60K of the Employment Act, 1955 (EA). They have upgraded the Integrated Foreign Worker Management System (ePPAx) with improved modules and new functions, including the multi-tiered levy (MTL). 

Key Points for Employers on the Updates:

• Mandatory Approval: Employers must obtain prior approval before hiring any foreign workers including expatriates. This applies to all non-citizen employees.
• Streamlined Processes: Impact Employment Pass (EP) and Professional Visit Pass (PVP) application and processes of initial approval in hiring foreign workers. 
• Non-applicable: This process does not apply to renewals of EP, Temporary Employment Visit Pass (PLKS), or other passes.
• Validity Period: Section 60K approval is valid for 12 months, requiring careful workforce planning within this timeframe to ensure compliance.
• Additional Enhancements: Employers can use the ePPAx system to report the new employment and termination of foreign workers to JTKSM.
• More details on the announcement can be found here.

Employer’s Obligations to JTKSM under Sections 60K and 60KA of the EA:

1. Obtain the JTKSM approval letter prior to the submission of applications to the ESD to hire foreign workers, including expatriates (Section 60K(1) of the EA).
2. Notify JTKSM of the employment of foreign workers within 14 days from the date of employment (Section 60K(3) of the EA).
3. In the case of termination of employment of a foreign workers (Section 60KA of the EA):
   • Notify JTKSM within 30 days of the termination of service if initiated by the employer.
   • Notify JTKSM within 14 days of the termination of service if initiated by the foreign employee.

Facing Challenges Complying with JTKSM’s Requirements?

We offer comprehensive support in securing work permits for your expatriates, obtaining JTKSM's approval, and ensuring timely and accurate notifications to JTKSM regarding the details of foreign employees and their terminations.

Contact us today for expert support!