The Story

Rahman came to Malaysia from Bangladesh in hopes of a better life. He signed a contract promising him a construction job with a salary of RM1,500, accommodation, and transport. When he arrived, the reality was different. His salary was often delayed, deductions were made for “fees” he did not understand, and his working hours stretched beyond 12 hours a day. When he complained, his supervisor shouted: “If you don’t like it, go back to your country!”

Rahman felt trapped. His passport was kept by the employer, and he feared losing his job or being deported if he raised his voice. He saw Malaysian colleagues taking medical leave with ease, while foreign workers like him were told to keep working or risk dismissal. Despite giving his sweat and strength to build Malaysia’s infrastructure, Rahman wondered: Why is it so much harder for foreign workers to get fair treatment?

The Law

Malaysia relies heavily on foreign workers in construction, plantations, manufacturing, services, and domestic work. In principle, labour law protections apply to all workers, whether local or foreign. But in practice, enforcement gaps and vulnerabilities make fair treatment harder for migrants.

1. Employment Act 1955 (Act 265)

• The Act applies to all employees under a contract of service, including foreign workers.
• This means foreign workers are legally entitled to:
  • Minimum wage (RM1,500 under the 2022 Order).
  • Overtime pay (1.5x, 2x, or 3x depending on rest days/public holidays).
  • Rest days, annual leave, and sick leave.
  • Maternity protection for female employees.
• Section 24 restricts unlawful deductions from wages. Employers cannot arbitrarily cut salaries for “fees” without legal basis.

2. Industrial Relations Act 1967

• Protects employees from unfair dismissal.
• In theory, foreign workers can lodge complaints under Section 20 if dismissed without just cause.
• In practice, many fear retaliation, contract termination, or loss of work permits before their case is resolved.

3. Passports and Mobility

• It is unlawful under Malaysian law for employers to retain employees’ passports. The Immigration Act requires employees to carry valid permits, but passports remain the worker’s property.
• Yet, many employers still keep passports, limiting workers’ freedom.

4. SOCSO and EPF Coverage

• As of 2019, foreign workers are covered under SOCSO (Social Security Organisation) for workplace accidents and invalidity benefits, replacing the older Foreign Worker Compensation Scheme.
• Foreign workers are not required to contribute to EPF, though voluntary contributions are possible. This reduces their long-term savings security.

5. ILO and International Standards

• Malaysia is a member of the International Labour Organization (ILO) and has ratified several conventions, including the Forced Labour Convention.
• However, not all migrant worker protections under ILO standards have been fully incorporated into domestic law.

Why Fair Treatment Is Harder in Practice

Despite legal protections, foreign workers like Rahman face unique vulnerabilities:

1. Dependence on Employers for Work Permits

• A foreign worker’s legal status in Malaysia is tied to their employer. Losing a job may mean losing the right to stay.
• This dependency discourages workers from complaining or seeking justice.

2. Language and Awareness Barriers

• Many migrant workers do not speak Bahasa Malaysia or English fluently.
• They may not fully understand their contracts, rights, or complaint procedures.

3. Passport Retention and Mobility Restrictions

• When employers hold passports, workers cannot leave abusive workplaces or even seek medical treatment freely.
• Though unlawful, enforcement remains weak.

4. Fear of Retaliation

• Workers who complain risk being blacklisted, terminated, or sent home.
• Legal processes take time, and most workers cannot afford to remain unemployed while waiting for justice.

5. Discrimination in Practice

• Some employers treat locals and foreigners differently in wages, leave approvals, or medical benefits, even though the law makes no distinction.

6. Recruitment Debt

• Many foreign workers arrive heavily indebted after paying recruitment agencies. This makes them more vulnerable, as losing a job means financial ruin.

Lessons

For Employees (Foreign Workers):

1. Know your rights. You are entitled to minimum wage, overtime pay, rest days, sick leave, and SOCSO coverage.
2. Keep documents. Save payslips, contracts, and evidence of deductions. These will support claims if disputes arise.
3. Seek help. The Jabatan Tenaga Kerja (JTK) and NGOs like Tenaganita or MTUC assist foreign workers in lodging complaints.
4. Do not surrender your passport. Even if pressured, the passport is your property. Report unlawful retention to authorities.

For Employers:

1. Fair treatment applies equally. Foreign workers are covered by the same labour laws as locals. Discrimination is not only unfair but unlawful.
2. Do not withhold passports. Provide proper facilities for safekeeping if needed, but allow employees to hold their own documents.
3. Respect dignity. Migrant workers contribute enormously to Malaysia’s economy. Treating them as lesser undermines both ethics and productivity.
4. Avoid exploitative deductions. Recruitment or levy costs should not be unfairly shifted onto workers.

For Policymakers and HR Regulators:

1. Strengthen enforcement. Laws already protect foreign workers, but weak enforcement allows abuse. More labour inspectors and stricter penalties are needed.
2. Improve complaint systems. Provide multilingual support so workers understand their rights and can lodge complaints without fear.
3. Reform recruitment. Ensure transparent, ethical recruitment processes to prevent debt bondage.
4. Consider equal EPF coverage. Migrant workers contribute years of service. Allowing or mandating EPF contributions could provide greater fairness.

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Conclusion

So, why is it harder for foreign workers to get fair treatment? The answer lies not in the absence of law but in the gap between law and practice.

The Employment Act 1955 and related laws do cover foreign workers. They are entitled to minimum wage, overtime pay, rest days, sick leave, and accident protection. The Industrial Relations Act 1967 also shields them from unfair dismissal.

Yet, in reality, many foreign workers are trapped by dependence on employers, language barriers, debt, and fear of retaliation. Their rights exist on paper but are difficult to enforce.

For employees like Rahman, the lesson is to know their rights and seek help from authorities and NGOs. For employers, the lesson is to recognise that fairness is not just a legal duty but also a moral one. For policymakers, the lesson is that true justice requires not just laws but strong enforcement, awareness campaigns, and systemic reform.

Foreign workers are not invisible—they are the backbone of many industries in Malaysia. The real test of fairness is not how we treat those with power, but how we treat those most vulnerable. The law is there, but it must be made real.

In short: Fair treatment for foreign workers is not just a legal requirement—it is a measure of Malaysia’s dignity as a nation.