Private Employment Agencies Act 1981

Original Language Title: Private Employment Agencies Act 1981

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Laws of Malaysia Act 246 Reprinting employment agency Act 1981 Contains all amendments to 1 January 2006 published by the Commissioner of law revision, under the authority of Law Revision Act 1968 2008 Act 246 tiny 1 5/28/08 9:35:43 PM 2 laws of Malaysia Act 246 private employment agency Act, 1981 date of Assent............... February 12, 1981, the date of publication in the Gazette............ February 19, 1981 Act 246 tiny 2 5/28/08 9:35:43 PM private employment agency 3 laws of Malaysia Act 246 of the Act employment agency 1981 arrangement of sections section 1. short title 2. Application and exception 3. interpretation 4. Appointment of officers 5. All officers shall be public servants 6. Public servants protection 7. the requirement to obtain a licence 8. Application for a licence 9. Conditions to be met for the granting of a licence 10. form and duration of licence 11. renewal of licence 12. Public Affairs shall be mentioned in the licence 13. display of licence 14. Fees for services 15. The placement of prejudicial public interest 16. endorsement for recruitment for work abroad 17. Restrictions on registration or recruitment of 18. advertising 19. maintain record of 20. 21 statement. the power to enter and inspect premises 22. employment agencies are deemed to be a public place 23. the authority to issue instructions 24. Disposal of bonds 25. Cancellation of license Act 246 tiny 3 5/28/08 9:35:43 PM 4 laws of Malaysia Act 246 26. appeal 27. Regulations 28. error 29. various offences 30. offences by a group 31. Prosecution 32. Penalties Schedule Act Section 246 tiny 4 5/28/08 9:35:43 PM private employment agency 5 laws of Malaysia Act 246 private employment agency Act, 1981 an act to regulate private employment agency in malaysia.
[1 January 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 employment agency Act, 1981.
application and exception 2. (1) this Act shall apply throughout malaysia.
(2) the Minister may by order published in the Gazette and subject to any conditions imposed by it, exempt from all or any part of this Act an area, occupation, organization or class of persons.
interpretation 3. In this Act, unless the contents of the lines require other meanings — "employment agency" means — (a) an employment agency which is carried out with the purpose of searching for profit, that is to say any person, company, institution, agency or other establishment acting as Act 246 tiny 5 5/28/08 9:35:43 PM 6 laws of Malaysia Act 246 of the mediator for the purpose of employment for a worker or provide an employee for an employer with a view to obtaining either directly or indirectly any interest from in terms of money or other things either employer or employee; This term does not include newspapers or other publications unless they are published solely or mainly for the purpose of acting as an intermediary between employers with employees;
(b) an employment agency which is not carried out with the purpose of searching for profit, namely placement service a company, institution, agency or other organization, although not carried out with the purpose of acquiring any interest in terms of money or something else, charge a fee in, regular contribution or any other charges either employers or employees for the above services;
"prescribed" means prescribed by the Minister;
"fees" means the fees in any manner whatsoever for services rendered;
"advertisement" shall include a notification, circular, pamphlet or a document and an announcement made orally or in any other manner which issued or transmitted light or sound;
"Director General" means the Director General of labour;
"licence" means a licence issued under this Act;
"employer" means a person to employ an employee and includes an agent, Manager or factor that employer;
"Minister" means the Minister responsible for labour and manpower;
Act 246 tiny 6 5/28/08 9:35:43 PM private employment agency 7 "employee" means any person who works to earn rental and wages, whether as apprentices or not, and includes any person seeking such work;
"general release" means any delivery that is used by the employment agency to advertise.
appointment of officers 4. (1) the Minister may appoint a Director General and several other officers for the purpose of carrying out the provisions of this Act.
(2) subject to such limitations, if any, as may be prescribed by regulations made under this Act, an officer who is appointed under subsection (1) shall perform all the duties charged and may exercise all of the powers given to the Chief Director by this Act and every obligation undertaken such and such power carried out shall be deemed to have been implemented and carried out the successful completion for the purposes of this Act.
all officers shall be public servants 5. All officers appointed under section 4 shall be deemed to be public servants for the purposes of the Penal Code [Act 574].
protection of public servants 6. There are no any suit can be made against a person public servants for anything done or not done by him in good faith without gross negligence and for the purpose of exercising any power or performing any duty assigned or charged by this Act.
Tiny 7 Act 246 5/28/08 9:35:43 PM 8 laws of Malaysia Act 246 needs get a licence 7. (1) No person shall conduct a private employment agency except under the authority of a valid licence issued by the Director-General: provided, however, that it shall not violate the provisions of this section if a person who has been doing private employment agency before a specified date and who has applied for a licence under this Act within the time allowed by subsection 8 (2) continued to conduct until its application for the license was decided.
(2) the authority of a licence issued under this Act shall not release a person from compliance with the provisions of any other written law in force at the time.
application for a licence 8. (1) every application for a licence shall be in the prescribed form and shall be accompanied by a license fee as set out in the schedule to this Act.
(2) every person who carries on the business of an employment agency at a specified date shall apply to the Director-General for a licence within one month after that date.
conditions to be met for the granting of a licence 9. None of the licence to carries on the business of an employment agency may be granted unless — (a) if the arrangement is to be carried out by an individual, it is a Malaysian citizen;
(b) if the arrangement is to be carried out by a partnership, the partner is Malaysian;
(c) if the arrangement is to be carried out by a company, the bulk of the capital shares of the company held by Malaysian;
Act 246 tiny 8 5/28/08 9:35:43 PM private employment agency 9 (d) the person responsible for the managing and every employee or agent that his duties be related to managing that — (i) is someone who has good behavior;
(ii) is not a person of the bankrupt that has not been discharged; and (iii) is not convicted of an offence and sentenced to imprisonment for more than one year or a fine of more than two thousand dollars;
(e) any premises which are suitable for doing it;
(f) individuals or partnerships or companies that want to conduct it undertakes that such arrangements will be carried out in order and morality;
(g) an individual, firm or company is binding on a bond with the Director General, with two sureties, a total sum of money determined by the Minister in the schedule to this Act. the Minister may fix the amount of money separately for jobs in malaysia and overseas jobs and may at any time change the bond specified in the schedule; and (h) such other conditions as may be prescribed for the purposes of this section have been met.
Form and duration of licence 10. every licence shall be in the prescribed form and, unless otherwise cancelled in advance, shall be in force for a period of twelve months from the date it was issued.
Renewal of licence 11. Application for renewal of a licence must be submitted at least two months before the expiration date of the license and shall be in such form and manner as may be prescribed by the Minister.
Act 246 tiny 9 5/28/08 9:35:43 PM 10 laws of Malaysia Act 246 public affairs shall be mentioned in the licence 12. licensed employment agency shall exercise its conduct in a place as mentioned in the licence and cannot change public affairs without written permission in advance from the Director General.
Display license

13. a licensed employment agency licences shall display in a place easily visible in the premises where the business of running.
Fees for services 14. (1) none of the private employment agency can charge for the services rendered other fees or in excess of the fee specified in the schedule and for every fee received a receipt shall be issued.
(2) the Minister may, by order published in the Gazette amend the fees specified in the schedule.
the placement of prejudicial public interest 15. None of the private employment agency can deploy or intended to put any person in any employment that is prejudicial to the public interest or knowingly send, redirect or lead someone to a place for the purpose of pornography.
endorsement for taking to work out State 16. (1) a licence issued under subsection 7 (1) may be endorsed by the Director-General for the purpose of taking people living in malaysia to work abroad provided that a bond as may be prescribed in the schedule to this Act, deposited with the Director General.
Act 246 tiny 10-5/28/08 9:35:43 PM private employment agency 11 (2) an endorsement is valid for the same period as the original license.
(3) before registering or taking someone living in malaysia to work abroad, a private employment agency shall give to the Director General the following details: (a) the name and address of the prospective employer;
(b) satisfactory evidence of specific orders for the employee by the employer or employers abroad;
(c) the category or categories of jobs and the number of workers required in respect of each category;
(d) limitations and conditions of employment offered;
(e) the proposed employment agreement that will be signed by prospective employees and employers; and (f) any other information as may be required by the Director General.
(4) the Director may give directions and impose such conditions as it thinks fit with regard to the State of the labour market locally and internationally available.
restrictions on registration or acquisition 17. the Minister may, by order published in the Gazette, prescribe that an employment agency can not sign up or take any person living in malaysia for a particular category or occupational categories including jobs for overseas acquisition.
Ad 18. (1) none of the private employment agency can advertise in a general release unless the advertisement contains — (a) the licence number; and Act 246 tiny 11 5/28/08 9:35:44 PM 12 laws of Malaysia Act 246 (b) proper information regarding the vacancy, the eligibility and limits and conditions of employment.
(2) any employment agency contravening subsection (1) is guilty of an offence under this Act.
Maintain record of 19. every employment agency shall maintain — (a) record on registration showing the name, address, identity card number and qualifications of the employees;
(b) of the vacancy and all aspects regarding the vacancy, i.e. number of vacancy, the eligibility of the candidate you want, the name and address of the employer who told the vacancy, place of employment where there is a vacancy and the limitations and conditions of employment;
(c) record on worker;
(d) record on fees collected; and (e) any other records as may be required by the Director General from time to time.
statement 20. the Director-General may at any time through written instructions require an employment agency that sends him in the manner and period specified in the instructions — (a) a statement in respect of any or all records required to be maintained under section 19;
(b) a notification of change of any person responsible for the agency or taken by or is an agent of the Agency;
(c) a statement of registration and placement of persons for employment abroad;
Act 246 tiny 12 5/28/08 9:35:44 PM private employment agency 13 (d) a statement of megandungi any other particulars as may be required by him in connection with the business of the Agency; and (e) any written information or briefings as required by it in respect of an item set out in a statement sent by the Agency.
the power to enter and inspect premises 21. (1) the Director General or any officer authorized in writing by the successful completion of the Director-General shall have power to enter at any reasonable time any premises suspected with reasonable is being used without a licence for the purposes of an employment agency or if it has reasonable grounds to believe that the private employment agency arrangement is contrary to this Act and should check the premises to make any investigation it considers necessary in respect of any matter within the provisions of this Act.
(2) at the time of inspection under this section, the Director-General may — (a) raise questions with respect to the business of the employment agency to a person responsible for the Agency and to any others that his evidence might may deem necessary, and everyone that is legally bound to answer that question as far as possible correctly;
(b) require the person responsible for it showing him all or any record required to be kept under this Act;
(c) seize or take copies of any records shown to it under paragraph (b); and (d) seize any records or documents in the Agency's premises or in the possession of any person found in such premises if the Director-General believes that an offence under this Act has been committed.
Act 246 tiny 13 5/28/08 9:35:44 PM 14 laws of Malaysia Act 246 (3) a person may refuse to comply with any request or instruction of authorized officer acting or purporting to act under this Act if the officer refuses on request to declare its identity or its powers, as the case may be.
(4) any person who obstruct or interfere with the Director General or an officer authorized in writing by the successful completion of the Director-General in the exercise of any power or perform any duty granted under this Act commits an offence.
employment agencies are deemed to be public areas 22. for the purposes of section 21 small offences Act 1955 [Act 336], every employment agency shall be deemed to be a public place.
the authority to issue instructions 23. the Director General may issue to a private employment agency any direction as he may deem necessary for the purpose of ensuring that the travel agency in accordance with the provisions of this Act, and any agencies which issued any such instructions shall be bound by them within the period specified in the instructions.
disposal of bonds 24. the Director-General shall use his discretion to dispose of bonds stored under paragraph 9 (g) to settle claims that may arise in connection with the arrangement.
cancellation of licence 25. (1) the Director General may revoke a licence if it is satisfied that the licensee — (i) has violated any provision of this Act or any regulations made thereunder or act 246 tiny 14 5/28/08 9:35:44 PM private employment agency 15 any bond or undertaking made by the holder of a licence under this Act; or (ii) has been convicted of an offence under this Act; or (iii) was not complied with any instructions issued by the Director General to the licensee under this Act; or (iv) have given in an application, or in any statement, or in a written information or description submitted by the holder of a licence under this Act, any particulars known to the licensee that is false or untrue: provided that the Director-General shall give the notice to the licensee not less than two weeks on the proposed cancellation stating the reason and the licensee can give reason why the cancellation should not be done.
(2) where an application for renewal of a licence or a licence has been revoked and no appeal is made against the refusal or cancellation, licensee shall forthwith deliver the licence to the Director General and if it fails to do so he commits an offence under this Act.
appeal 26. Any person aggrieved by the decision of the Director General under this Act may, within thirty days of the notification of such decision, appeal in writing to the Minister whose decision be final and shall not be questioned in any Court of law.
regulations 27. the Minister may by notification in the Gazette make regulations — (a) in respect of all matters authorized by this Act so prescribed; and Act 246 tiny 15 5/28/08 9:35:44 PM 16 laws of Malaysia Act 246 (b) for the purposes of wages or give effect to the principles and provisions of this Act.
error 28. every person who — (a) contravenes any of the provisions of this Act or any regulations made thereunder; or

(b) give any statement, information or briefings in writing containing such particulars which he knows is false and not true, commits an offence under this Act.
various offences 29. A licensee who — (a) charge or accept personally or by someone else, for his service, any sums that are greater than the prescribed fees; or (b) knowingly and intentionally deceive any employee by giving false information, commits an offence under this Act.
offences by a group 30. If an offence under this act committed by a group of people, then — (a) if the group is a body corporate, every Director of the body corporate shall be deemed to be guilty of that offence; and (b) if the group is a partnership, each partner shall be deemed to be guilty of the offence Act 246 tiny 16 5/28/08 9:35:44 PM 17 private employment agency, provided, however that no person or partner of such Director shall be deemed to be guilty of an offence under this Act if it is proved that the offence was committed without his knowledge and that he has conducted all due diligence to prevent the occurrence of the offence.
prosecution 31. His trial for an offence against this Act or of any regulations made thereunder shall not be instituted or carried out except by or on behalf of the public prosecutor or by a police officer not below the rank of Inspector.
32 penalty. (1) any person guilty of an offence under section 7 shall, on conviction, to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding three years or to both.
(2) any person guilty of an offence under section 15 shall, on conviction, to a fine not exceeding four thousand ringgit or to imprisonment for a term not exceeding two years or to both.
(3) a person who commits an offence under section 18 shall, on conviction, to a fine not exceeding three thousand ringgit or to imprisonment for a term not exceeding one year or to both.
(4) any person who commits any offence under this Act shall, on conviction, if there are no other specific penalty provided for under this Act, to a fine not exceeding two thousand ringgit or to imprisonment for a term not exceeding six months or to both.
Act 246 tiny 17 5/28/08 9:35:44 PM 18 laws of Malaysia Act 246 table (i) license fee............... rm25 (ii) (iii) bonds (i) Local Employment bond cash............ guaranteed bonds............
(ii) Employment Overseas cash bonds............ guaranteed bonds............
Registration fees (i) fees for the registration of all local employment category, the registration shall be valid for a variety of employment and for a period of 12 months ... ... more
(ii) the fees for the registration of all categories of jobs abroad, valid registration for a variety of jobs...... rm1, 000 rm5, 000 rm5, 000 to rm10, 000 is not more than rm12 not more than rm20 (iv) Placement Fees (i) fees for local settlement (ii) fees for overseas placement of not more than 20% of the initial month salary not more than 25% initial months salary provided that if employers have to pay the Agency for services rendered , these jobs will not be liable to pay any costs during placement.
246. tiny 18 Act 5/28/08 9:35:44 PM private employment agency 19 laws of Malaysia Act 246 of the Act employment agency 1981 List Amendment law short title force amend from P.u. (a) 213/1981 Order employment agency 24-07-1981 private (Amendment) 1981 a1246 Act employment agency Act 05-09-2005 private (Amendment) Act 246 tiny 19 5/28/08 9:35:44 PM 20 laws of Malaysia Act 246 laws of Malaysia Act 246 of the Act employment agency 1981 list of Section amended Section power to amend with effect from 3rd Act a1246 05-09-2005 4 Act a1246 05-09-2005 table P.u. (a) 213/1981 24-07-1981 Act 246 tiny 20 5/28/08 9:35:44 PM