Employment Agency Issues

What do you need to know?

In Malaysia, it is illegal under section 12(1)(f) of the Passports Act 1966 for an employer to keep their MDW’s passport. One of the few situations when an employer is allowed to keep an MDW’s passport is when they are renewing their MDW’s visa. However, generally, an MDW should always have access to her passport.

There are many reasons why an employer might want to keep their MDW’s passport. Some may believe that their MDW will run away if she has her passport. Some employers might want to keep their MDW’s passport for ‘safe keeping’ to make sure it does not get lost or damaged.

The reason it is important for an MDW to keep her passport is so that she is able to freely move around without restriction. A passport is also a form of identification, so if an MDW does not have access to her passport, it might be hard for her to prove her identity. For example, if an MDW is in an abusive or dangerous employment situation, it is important that she has access to her passport so that she can immediately leave the employer’s house and seek help. The passport will provide her with a way to leave Malaysia and also proves her identity.

The Department of Labour (JTKSM) is responsible for licensing employment agencies that hire MDWs to work in Malaysia. The Department of Labour website provides a list of all licensed private employment agencies. Before dealing with an employment agency, you may wish to check if the agency is licensed to operate legally.

In Malaysia, the Private Employment Agencies Act 1981 (No. 246) regulates recruitment agencies and fees. Under this law, employment agencies cannot charge a fee that is more than one month’s of basic wages of a worker.

For an MDW from the Philippines and a country that does not have an existing government-to-government memorandum of understanding with the Federal Government of Malaysia, the maximum amount of recruitment fee cannot be more than the MDW’s one month of basic wages.

It is possible that sometimes an MDW will get into a dispute or have an issue with their employer. It is also common that the MDW and the employer will ask the employment agency to resolve the dispute. If you have a dispute or issue with your employer, you may wish to contact a lawyer or NGO for help with communicating with the employment agency, as it is important to protect yourself and better understand your rights.

  • Document any overcharging incidents you encounter. You may report the violation to the Department of Labour, whether you are in Peninsular Malaysia, Sabah, or Sarawak
  • Do not pay money to an agency if you do not understan what the fee is for or if it is correct to charge the fee.

Resources:

Department of Labour Sarawak

Department of Labour Sabah

Embassy of the Philippines, Malaysia

North South Initiative

Department of Labour Peninsular Malaysia