Panel to review proposal to deduct salary first - Kula - Labour Law Blog

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Dec 17, 2018

Panel to review proposal to deduct salary first - Kula

A technical committee will be formed to look into the proposal to deduct 20% of foreign workers’ basic salaries to be parked under Socso.

Human Resources Minister M. Kulasegaran yesterday assured that the committee would look into the proposal holistically and revert to him with their findings on Jan 29.

He said should the committee from the National Labour Advisory Council (NLAC) concur with his proposal, he would begin consulting the foreign missions and his counterparts in the source countries.

“At this stage, it is only my proposal and if the committee says no, then it is a no.

“I have to get their approval, then the NLAC has to formally approve it before I take it to the ambassadors and my counterparts.

“It has to also get the approval from the Cabinet, the Dewan Rakyat and Senate.

“These are challenges, but I think it will work out well for the foreign workers.

“The money that will be returned to them will include interests,” he said after chairing an NLAC meeting in Parliament here yesterday.

He said amendments to the Employment Act 1955 and Employees’ Social Security Act 1969 were needed to cater to the new development.

He said foreign workers were a vulnerable group and a helping hand should be extended to them.

“These foreign workers are mostly from the B40 group or below. I think it’s incumbent upon us to ensure that when they want to return, they have something to take home,” he added.

Kulasegaran said it would also provide a check and balance against delinquent employers who defaulted paying their foreign workers’ salaries.

Malaysian Employers Federation president Tan Sri Azman Shah Haron, who was present at the meeting, assured that foreign workers’ views will be taken into account.

“At the moment, this is just a suggestion. It still needs to be debated and examined at all angles by the technical committee.

“As for the foreign workers, I’m sure they will be represented by the unions,” he added.


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