EMPLOYMENT (RESTRICTION) ACT 1968

Employment (Restriction) LAWS OF MALAYSIA Act 796 EMPLOYMENT (RESTRICTION) ACT 1968 (Revised—2017) REVISED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 2017 1 2 Laws of Malaysia Act 796 EMPLOYMENT (RESTRICTION) ACT 1968 Revised up to … … … Date of publication in the Gazette of this revised edition … … 1 November 2017 … 15 November 2017 Date appointed for coming into operation of this revised edition pursuant to paragraph 6(1)(xxiii) of the Revision of Laws Act 1968 [Act 1] … … … … 15 November 2017 First enacted in 1968 as Act of Parliament No. 36 of 1968 PREVIOUS REVISION First Revision … … … 1988 (Act 353 w.e.f. 3 November 1988) Employment (Restriction) 3 LAWS OF MALAYSIA Act 796 EMPLOYMENT (RESTRICTION) ACT 1968 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. Short title and application 2. Interpretation 3. Officers Part II RESTRICTIONS OF EMPLOYMENT OF NON-CITIZENS OF MALAYSIA 4. Application of Part II 5. Restrictions of employment of non-citizens 6. Application for employment permits and renewal of employment permits 7. Issuance and renewal of employment permits 8. Particulars of new employment of non-citizens 9. Termination of employment of non-citizens 10. Validity of employment permits 11. Onus of truth of application 4 Laws of Malaysia Act 796 Part III REGISTRATION Section 12. Registration of non-citizens Part IV GENERAL 13. Power of entry and request for production of documents, etc. 14. Loss of employment permits 15. False information 16. Custody and surrender of employment permits 17. Penalties 18. Effect of contravention of section 9 19. Exemption 20. Regulations SCHEDULE Employment (Restriction) 5 LAWS OF MALAYSIA Act 796 EMPLOYMENT (RESTRICTION) ACT 1968 An Act to provide for the restriction of employment in certain business activities in Malaysia of non-citizens and the registration of such non-citizens and for matters connected therewith. [1 July 1969; P.U. (B) 141A/1969] PART I PRELIMINARY Short title and application 1. (1) This Act may be cited as the Employment (Restriction) Act 1968. (2) This Act applies throughout Malaysia. Interpretation 2. In this Act, unless the context otherwise requires— “Director General” means the Director General of Labour appointed under subsection 3(1); “employer” means any person who has entered into a contract of service to employ another person as an employee and includes the agent, manager or factor of the first-mentioned person and the word “employ” with its grammatical variations and cognate expressions, shall be construed accordingly; 6 Laws of Malaysia Act 796 “Minister” means the Minister charged with the responsibility for human resources; “authorized person” means a person authorized by the Director General for the purposes of this Act; “employment permit” means an employment permit issued under section 7; “business” includes any form of trade, commerce, craftsmanship, calling, profession or other activity carried on for the purpose of gain. Officers 3. (1) For the due administration of this Act, the Yang di-Pertuan Agong shall appoint a Director General of Labour, a Deputy Director General of Labour and such number of Assistant Commissioners for Labour as may be deemed necessary. (2) The Minister may appoint such number of employment officers as he may consider necessary or expedient for the purposes of this Act. (3) An employment officer appointed under subsection (2) shall be under the direction and control of the Director General. Part II RESTRICTIONS OF EMPLOYMENT OF NON-CITIZENS OF MALAYSIA Application of Part II 4. (1) This Part shall apply only to the class or classes of persons or the category or categories of employment or business as may be specified in the Schedule. (2) The Yang di-Pertuan Agong may by order amend or add to the Schedule. Employment (Restriction) 7 Restrictions of employment of non-citizens 5. (1)(a) No non-citizen referred to in the Schedule shall be employed in any business in Malaysia or accept employment in any business in Malaysia unless there has been issued in respect of such non-citizen a valid employment permit. (b) No person shall employ in Malaysia any non-citizen referred to in the Schedule unless there has been issued in respect of that non-citizen a valid employment permit. (2) Subsection (1) shall have effect notwithstanding any other written law or any term or condition of any contract or agreement. (3) For the purposes of this section, any person found performing any act normally performed by an employee in any place of employment shall be deemed to have been employed under a contract of service by the employer of that place of employment. Application for employment permits and renewal of employment permits 6. (1) Every non-citizen referred to in the Schedule shall before commencing any employment or business described in that Schedule apply for an employment permit to the Director General and the application shall be in such form and shall contain such particulars as may be prescribed. (2) An employment permit may on the expiry of its period of validity be renewed. (3) Any person who desires to renew an employment permit shall make an application to the Director General or any authorized person in such form as may be prescribed. 8 Laws of Malaysia Act 796 Issuance and renewal of employment permits 7. (1) Upon receipt of an application for an employment permit or an application for renewal of an employment permit under section 6, the Director General or any authorized person may in his discretion issue an employment permit in such form as may be prescribed or renew such employment permit and may impose such terms, conditions and restrictions as he may think fit. (2) The Director General may at any time vary or add to any terms, conditions or restrictions in an employment permit. (3) The Director General may in his discretion at any time and without assigning any reason refuse to issue or to renew an employment permit or cancel or suspend an employment permit. (4) Any person aggrieved by a decision of the Director General under subsection (1), (2) or (3) may, within twenty-one days from the date of such decision, appeal to the Minister whose decision shall be final and shall not be subject to appeal or review in any court. Particulars of new employment of non-citizens 8. An employer shall, before employing any non-citizen referred to in the Schedule, furnish the Director General with particulars of such employment and of such non-citizen in such form as may be prescribed. Termination of employment of non-citizens 9. (1) Notwithstanding any written law or any term or condition of any contract or agreement, an employer of an employee in any of the category or categories of employment or business described in the Schedule shall terminate the services of that employee within thirty days of his being notified in writing by the Director General that the employment permit issued in respect of that employee has been cancelled, suspended or not renewed under subsection 7(3). Employment (Restriction) 9 (2) Every employer referred to in subsection (1) who terminates the services of an employee or ceases to employ such employee pursuant to subsection (1) or for any other reasons shall notify the Director General in writing within fourteen days of such termination or cessation. (3) The termination of the services of an employee pursuant to subsection (1) shall not be— (a) capable of negotiation by a trade union representing the person affected; or (b) the subject matter of a trade dispute or of conciliation proceedings or any method of redress whether under any written law or not. Validity of employment permits 10. (1) Subject to subsections 7(2) and (3), an employment permit issued under this Part shall unless otherwise specified be valid only in respect of the particular employment and the employer specified therein. (2) An employment permit shall unless sooner cancelled or suspended be valid for a period of not exceeding two years. Onus of truth of application 11. The onus of proving the truth of the contents of an application for an employment permit under section 6 shall be on the person who makes the application. Part III REGISTRATION Registration of non-citizens 12. (1) Subject to any exemption which may be granted under this Act, every non-citizen of the class or classes or in the category or categories of employment or business as may be specified in the notification under subsection (2) shall be registered under this section. 10 Laws of Malaysia Act 796 (2) The Yang di-Pertuan Agong may by notification in the Gazette specify the class or classes of non-citizens or the category or categories of employment or business to whom or to which subsection (1) shall apply. (3) Subject to subsections (1) and (2), every non-citizen shall apply for registration in the prescribed form to the Director General. (4) The Director General shall keep and maintain a register of persons registered under this Part. (5) The register to be kept and maintained by the Director General under subsection (4) shall be in such form as may be prescribed. Part IV GENERAL Power of entry and request for production of documents, etc. 13. (1) An employment officer may if he has reason to believe that an offence under this Act has been or is being committed in any premises other than premises solely used as a dwelling place without warrant enter such premises. (2) An employment officer may— (a) require any person, whom he has reason to believe to be in possession of any document or information relevant to the carrying out of this Act, to produce any such document or to give such information; or (b) question any person or require any person by notice in writing to attend at such time and at such place as may be stated in such notice in regard to any document or information which, in the opinion of the employment officer, is relevant to the carrying out of this Act, and which he believes to be in such person’s possession or knowledge. Employment (Restriction) 11 Loss of employment permits 14. (1) When an employment permit has been lost, destroyed or defaced, a person in respect of whom the employment permit has been issued shall forthwith report the matter to the Director General or any authorized person and shall apply for a replacement employment permit. (2) A replacement employment permit may be issued by the Director General or authorized person in place of the employment permit which has been lost, destroyed or defaced. (3) Where a person referred to in subsection (1), after notifying the loss of his employment permit, recovers possession of such employment permit he shall forthwith notify the Director General or authorized person of such recovery. (4) Where any person referred to in subsection (1) recovers possession of his employment permit after he has been issued with a replacement employment permit under subsection (2), he shall forthwith return the employment permit so recovered for cancellation. (5) Any person who finds or comes into possession of an employment permit other than his own shall forthwith deliver it to the Director General or any authorized person, or to the nearest police station, or post office. False information 15. Any person who makes any statement or furnishes any information to the Director General or any employment officer or any authorized person under this Act or any rules made under this Act which he knows or has reason to believe to be false in any material particular or omits any particular which he knows or has reason to believe is a material particular shall be liable to a fine not exceeding one thousand ringgit or to imprisonment for a term not exceeding one year or to both. 12 Laws of Malaysia Act 796 Custody and surrender of employment permits 16. (1) An employment permit issued in respect of a pe