HR Ministry says it's not responsible for policing labour outsourcing

The Human Resources Ministry said the Labour Department, which comes under the ministry, does not have the jurisdiction to act against companies that outsource migrant workers to third-party employers.

Migrant labour outsourcing is the practice where companies register as employers, but instead supply the workers to others for a fee. This practice is condemned by rights advocates for perpetuating forced labour.

The ministry also said the Labour Department has not pursued any legal action against such companies.

“For the issue of outsourcing, there have been no convictions of companies because the matter does not fall under the Private Employment Agencies Act 1981 (Act 246).

“And it does not fall under the jurisdiction of the Labour Department,” it said in a written reply to Malaysiakini.

The ministry did not clarify which department or ministry was responsible to address the issue or whether such a practice was not allowed in the employment of migrant workers in Malaysia.

The ministry was responding to questions asked by Malaysiakini, following its exposé on the trafficking of migrant workers by unlicensed labour agents.

Malaysiakini’s investigation exposed the practice of modern-day slave trading, where traffickers sell workers to desperate employers while pocketing fees from employers and perpetual commissions on the worker’s hourly wages.

The recruitment and management of migrant workers in Malaysia are jointly handled by the Human Resources Ministry and Home Ministry.

Industry veterans said relaxed conditions for labour imports led to an oversupply and a trafficking racket, but the Human Resources Ministry denied this, stressing that thorough checks were still in place.

95 companies probed, 3 prosecuted

Even though it could not probe outsourcing practices, the ministry said it did investigate companies that conducted migrant worker recruitment activities without a licence.

Since 2019, three cases have been prosecuted, resulting in two convictions amounting to a fine of RM21,000. The other case is ongoing in Selangor, it said.

“Out of 95 companies investigated, 43 have been recommended to have their quota approvals revoked due to non-compliance of approval conditions and violations or various acts,” the ministry said.

It is unclear if the companies mentioned were licensed or unlicensed labour agencies, and whether the job placement involved migrant workers only or included the local labour force as well.

Under Act 246, companies carrying out recruitment and placement activities without a licence are liable to a fine not exceeding RM200,000 or imprisonment for a term not exceeding three years, or both.

Rescue of jobless migrants

Hundreds of workers who arrived early this year, especially from Bangladesh and Nepal, found themselves stranded for months without employment.

Highlighting its efforts to address their plight, the ministry said it rescued 572 jobless migrant workers, primarily from the manufacturing and cleaning sectors.

However, it clarified that the ministry was not involved in finding jobs for them.

The ministry also clarified that only licenced employment agencies are authorised by Act 246 to recruit and place migrant workers,

“The act specifically pertains to private employment agencies conducting the recruitment of foreign workers to Malaysia, while government agency activities (in job placements) are not subject to this act,” it said. - Mkini