Page 12 - BPAReport

14. A committee chaired by MOHR will manage the enforcement actions to safeguard the
integrity of the NFWMS. It will comprise all agencies with roles in regulating foreign
workers. The subcommittee will also engage with state and local authorities who have a role
in safeguarding the welfare, health and safety aspects of foreign workers. A primary objective
of enforcement activities is to understand the root causes for the existence of undocumented
workers and strive to reduce their numbers.

15. The Independent Committee is strongly against the use of PLKS workers for
businesses that outsource labour. However, the Independent Committee recognises that firms
that are engaged in the businesses involved in outsourced service functions are legitimate and
should be permitted to employ PLKS workers on their payroll.

16. The Independent Committee recommends that the maximum length of continuous
stay of a PLKS worker should not exceed 10 years. A PLKS worker can be reemployed after
the return to the source country for a period of 3 months; and can be reemployed for a further
maximum period of 10 years subject to the age restriction for re-commencement of
employment. Levy payments will follow the multi-tier levy system. The current policy which
allows for an additional 3 year stay with a higher levy rate should be discarded.

17. The Independent Committee recommends that the policy over the past few years to
freeze the hiring of foreign workers in selected subsectors of services should be abrogated
immediately. Instead the hiring of foreign workers in these subsectors should immediately be
restored.

18. The Independent Committee welcomes the recent Government measures to grant
access of foreign workers to SOSCO for work accidents coverage and for the initiative to
enact new legislation to improve their accommodation facilities. The Committee recommends
that consideration also be given for further improvements in the health and accident coverage,
outside of the work context.

19. The Independent Committee recommends that it be mandatory that all foreign
workers and employers of foreign workers contribute to the Employees Provident Fund (EPF)
and that contributions by foreign workers and employers be the same as paid by local
workers and employers for local workers. This would be a better proposal than the deduction
of 20% of wages of foreign workers contemplated by Government, which should be
discarded. Arrangements for participation of foreign workers in the Employment Insurance
Scheme (EIS) should be considered. These actions will further equalise the workers’ safety
net provisions with Malaysian workers so as to be consistent with international norms.

20. A PLKS and other foreign worker complaints mechanism should be established. This
mechanism must be accessible to all foreign workers and confidentiality must be strictly
assured. A foreign worker seeking redress for any grievance relating to employment must be
given the time and opportunity to complete the established process and not be forcefully
repatriated.

21. The Independent Committee recommends that MOUs to be negotiated or reviewed
with source countries should have standardised core coverage and definitions. It is important
that all stages of the process and the associated charges and fees are covered and to state that

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