PRIVATE EMPLOYMENT AGENCIES ACT 1981

Private Employment Agencies LAWS OF MALAYSIA REPRINT Act 246 PRIVATE EMPLOYMENT AGENCIES ACT 1981 As at 1 October 2018 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 2018 1 2 Act 246 Laws of Malaysia PRIVATE EMPLOYMENT AGENCIES ACT 1981 Date of Royal Assent ... ... ... ... 12 February 1981 Date of publication in the Gazette ... ... 19 February 1981 Latest amendment made by Act A1554 which came into operation on ... ... ... 1 February 2018 ... Previous Reprints First Reprint ... ... ... ... ... 2001 ... ... ... ... ... 2006 Second Reprint Private Employment Agencies LAWS OF MALAYSIA Act 246 PRIVATE EMPLOYMENT AGENCIES ACT 1981 ARRANGEMENT OF SECTIONS Section 1. Short title 2. Application 3. Interpretation 4. Functions and powers of the Director General 4a. Delegation of functions and powers of the Director General 5. (Deleted) 6. Protection against suits and legal proceedings 7. Requirement for licence 8. Application for a licence 9. Compliance with conditions imposed on licence application 9a. Grant of or refusal to grant licence 9b. Power to impose conditions 10. Duration of licence 11. Renewal of licence 11a. Suspension or revocation of licence 12. Place of business to be as stated in licence 13. Display of licence 13a. Replacement of licence 13b. Assignment or transfer of licence l3c. Rent or lease of licence l3d. Identification document 3 4 Laws of Malaysia Section 13e. Establishment of branch 13f. Application for changing category of licence 13g. Notice of cessation of operation 14. Fees for services 14a. Registration fee 14b. Placement fee 14c. Money guarantee 14d. Utilization of money guarantee by the Director General 14e. Return of money guarantee 14f. Forfeiture of money guarantee 15–17. (Deleted) 18. Advertisement 19. Preparation, maintenance and keeping of records 19a. Notification of change in information furnished 20. (Deleted) 21. Powers of enforcement, inspection and investigation 22. (Deleted) 23. Power to issue directions 24–25. (Deleted) 26. Appeal 27. Power to make regulations 27a. Power to amend Schedules 28. Offences and penalties 29. (Deleted) 30. Offence by body corporate 31. Prosecution 32. Power to compound offences First Schedule Second Schedule Act 246 Private Employment Agencies 5 LAWS OF MALAYSIA Act 246 PRIVATE EMPLOYMENT AGENCIES ACT 1981 An Act to regulate private employment agencies in Malaysia. [1 August 1981, P.U. (B) 427/1981] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: Short title 1. This Act may be cited as the Private Employment Agencies Act 1981. Application 2. (1) This Act shall apply throughout Malaysia. (2) This Act shall not apply to the Federal Government and State Governments. Interpretation 3. In this Act, unless the context otherwise requires— “advertisement” shall include any notice, circular, pamphlet, invitation or information which has been disseminated, published 6 Laws of Malaysia Act 246 or displayed in relation to recruiting activities by any means or form including oral or written communication by means of print, electronic or any other media; “Director General” means— (a) in respect of Peninsular Malaysia, the Director General of Labour appointed under subsection 3(1) of the Employment Act 1955 [Act 265]; (b) in respect of Sabah, the Director of Labour appointed under subsection 3(1) of the Labour Ordinance [Sabah Cap. 67]; or (c) in respect of Sarawak, the Director of Labour appointed under subsection 3(1) of the Labour Ordinance [Sarawak Cap. 76]; “employer” means any person who engages a private employment agency to recruit an employee for himself; “fee” means the fee as specified in the First Schedule; “job seeker” means a person who is registered with a private employment agency for the purpose of looking for an employment or is offered an employment or has accepted an offer of employment, but not including a non-citizen; “labour officer” means the officer appointed under subsection 3(2) of the Employment Act 1955, subsection 3(1a) of the Labour Ordinance [Sabah Cap. 67] or subsection 3(1a) of the Labour Ordinance [Sarawak Cap. 76], as the case may be; “licence” means a licence granted under section 9a; “Minister” means the Minister charged with responsibility for human resources; “money guarantee” means a guarantee in the form of cash or financial guarantee issued by a licensed bank under the Financial Services Act 2013 [Act 758] or a licensed Islamic bank under the Islamic Financial Services Act 2013 [Act 759] but not including a licensed international Islamic bank, which is deposited pursuant to section 14c; Private Employment Agencies 7 “prescribed” means prescribed by the Minister by regulations made under this Act; “private employment agency” means a body corporate which is incorporated under the Companies Act 2016 [Act 777] and is granted a licence under this Act to carry on recruiting activity; “recruiting” means activities which have been carried on by any person, including advertising activities, as intermediaries between an employer and a job seeker to— (a) offer to look for an employment, offer an employment or obtain an employment, for a job seeker; or (b) offer to look for an employee, offer an employee or obtain an employee, for an employer. Functions and powers of the Director General 4. (1) The Director General shall have the following functions: (a) to administer and regulate all matters relating to the licensing of a private employment agency; (b) to regulate all matters relating to the recruiting activity carried on by a private employment agency including issuing a written direction; (c) to collect, receive, utilize or forfeit money guarantee deposited by a private employment agency; (d) to direct a private employment agency to submit any information and documents relating to the private employment agency and its activities; (e) to require submission of any information by a private employment agency to assist the Director General in the performance of his functions; and (f) to do anything incidental to any of his functions under this Act. 8 Laws of Malaysia Act 246 (2) The Director General shall have the powers to do all things necessary or expedient for or in connection with the performance of his functions under this Act. Delegation of functions and powers of the Director General 4a. (1) Subject to subsection (2) and any limitation as may be prescribed by the Minister, a labour officer may exercise all the function and powers conferred upon the Director General under this Act and every function and power so exercised shall be deemed to have been exercised for the purposes of this Act. (2) A labour officer shall not exercise any of the functions and powers of the Director General under this Act unless he is in possession of an authority card signed by the Director General authorizing him to exercise such functions and powers. 5. (Deleted by Act A1554). Protection against suits and legal proceedings 6. No action, suit, prosecution or any other proceeding shall lie or be brought, instituted or maintained in any court against the Government, the Minister, the Director General or any labour officer in respect of any act, neglect or default done or omitted by it or him in good faith, in such capacity. Requirement for licence 7. (1) No person shall carry on any recruiting activity unless he has been granted a licence under this Act. (2) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both. Private Employment Agencies 9 Application for a licence 8. (1) An applicant for a licence under this Act shall submit an application made in accordance with the category of licence as specified in the Second Schedule to the Director General in such form and manner as may be determined by the Director General. (2) The application shall be accompanied by the processing fee as specified in the First Schedule. (3) Upon receiving an application under subsection (1), the Director General may require the applicant to provide further particulars, information or documents as he thinks necessary. (4) If any particulars, information or documents required under subsection (3) are not provided by the applicant within the time determined by the Director General, the application shall be deemed to have been withdrawn without prejudice to a fresh application being made by the applicant. (5) If an application under subsection (1) is withdrawn at any time before the application is approved or refused, the processing fee paid under subsection (2) shall not be refunded. Compliance with conditions imposed on licence application 9. (1) The Director General may approve an application for a licence made pursuant to section 8 if the applicant complies with the following conditions: (a) the applicant is a body corporate incorporated under the Companies Act 2016— (i) with minimum paid-up capital as specified in the Second Schedule; and (ii) at least fifty-one per cent of the total shares of the company are held by citizens of Malaysia; 10 Laws of Malaysia Act 246 (b) the director of the company, who is named in the application form who is in charge of the affairs of the private employment agency— (i) is a citizen of Malaysia; (ii) is not an undischarged bankrupt; and (iii) has not been convicted of any offence under any written law in relation to anti-trafficking in persons and forced labour; (c) the applicant has suitable premises for carrying on recruiting activity as determined by the Director General; and (d) the applicant shall have the words “Agensi Pekerjaan” precede the name of the company. (2) Notwithstanding subsection (1), the Director General may impose any other conditions as he thinks necessary. Grant of or refusal to grant licence 9a. (1) Upon receiving and having considered the application for a licence under section 8, the Director General may grant or refuse to grant a licence. (2) The Director General shall issue to the applicant a written notice of his decision whether to grant or refuse to grant a licence under subsection (1). (3) If the application under subsection (1) is approved, the applicant shall, within thirty days from the date of the notice under subsection (2), pay the licence fee as specified in the First Schedule and deposit the money guarantee as specified in the Second Schedule for the purposes of granting the licence. (4) If the applicant fails to pay the licence fee and money guarantee within thirty days as specified under subsection (3), the Director General may refuse to grant the licence without prejudice to a fresh application being made by the applicant. Private Employment Agencies 11 Power to impose conditions 9b. Subject to this Act, the Director General may impose any conditions as he thinks necessary upon granting a licence under section 9a and may amend the conditions imposed. Duration of licence 10. Every licence granted under section 9a or renewed under paragraph 11(2)(a), unless the licence is suspended or revoked, shall be valid for a period of twenty-four months from the date of— (a) granting of the licence; or (b) renewal of the licence, as the case may be. Renewal of licence 11. (1) Application for renewal of licence shall be submitted by the applicant to the Director General together with the processing fee as specified in the First Schedule at least sixty days before the expiry date and shall be in such form and manner together with any document and information as determined by the Director General. (2) The Director General ma