Page 45 - BPAReport

levy because they value the services and experience of the worker in question. However,
other employers have protested at what they considered to be an unjustified decision without
satisfactory explanations.

Levy payment

47 The levy rates are different for Peninsula Malaysia, Sabah and Sarawak. Furthermore,
they also differ across sectors where workers are deployed. Over the years, obligation for the
levy payment has alternated between employers and employees. Between 2012 and 2017 the
annual levy was paid by employees. In 2018, this policy was changed again and employers
must now pay the levy. As is to be expected, employers were unhappy with this change as
they claim it will add to cost. They were even more unhappy with the decision to apply a
RM10,000 levy rate for extension of a worker beyond 10 years.

48. To add to their distress, starting from 2018 employers must make a full upfront levy
payment for all approved new foreign workers before they can begin the process for
recruiting the new employees in the source country. This gives rise to several issues because
if the employers later decide on the basis of need to recruit less than the approved number of
workers they will face difficulties in a getting a timely reimbursement. The reimbursement
process by the immigration department is complicated and prolonged. A similar situation
arises when a newly arrived foreign worker fails the mandatory medical check and must be
repatriated.

4.10 Abuse and mistreatment of foreign workers

Restriction to one employer and approved sector

49. A PKLS foreign worker can only be employed in the business entity and sector, for
which approval has been granted. There is no available mechanism to permit the worker from
switching employer nor the approved sector for work. It is largely known, that this is one of
the reasons which has caused PKLS workers to become undocumented workers either
because they find themselves in an employer abusive situation or cannot tolerate the
conditions in the sector in which they are employed. In addition, the worker might have been
the victim of human smugglers or traffickers disguised as recruitment agents and offered an
employment different from what was originally agreed.

Accommodation

50. It is compulsory for employers to provide accommodation for foreign workers which
comply with the minimum standard guidelines enforced by the MOHR. These guidelines in
force since January 2016, are applicable to all sectors, except for the plantation and
construction sectors which are covered by different regulations. However, compliance
continue to be not well regulated and living conditions especially in construction sites
continue to be abysmal. Local government and authorities have an enforcement role in this
regard, but have not taken up the tasks. Also many accommodations provided continue to
exhibit overcrowding conditions, inadequate sanitary services, in locations giving rise to
conflicts with Malaysians and unduly removed from the workplace.

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