Yes, you can terminate the employment of a foreign worker if only he/she breaches any of the terms in the employment contract. In this case, you need to apply for Check-Out Memo (COM) for the worker and he/she must immediately return to their home country at their own expense.

In case the Employer terminates his/her employment before contract completion due to the company’s own reasons, the Employer shall pay the basic salary of remaining contract months and return them to their home country at the company’s own expense.

A foreign worker can work in Malaysia on a 2 plus 1 year work permit. They are able to work in Malaysia up to 10 years (Depending on Sector approved by the Immigration Department and the employee’s decision to extend).

The said worker will be treated just as a Local worker in that they must be covered by Foreign Workmen Compensation Scheme (FWCS) and Foreign Workers Hospitalization & Surgical (FWHS). In the case where they are injured on the job, the FWCS & FWHS must be renewed on yearly basis upon work permit renewal.

The employer can pay the foreign worker a set rate of pay for the duration of the employment contract. This can be specified in the employment contract that would be signed by both the worker and the employer prior to commencement of employment.

This is fully dependent on the sector of employment and the Approval from the Ministry of Home Affairs and Immigration Department of Malaysia. If the worker is filling a position that is deemed necessary by the National Vocational Training Council (MLVK), then this process is quite simple and quick. This has to be done 4 months before the workers work permit expiration in order to obtain the certificate.

However, if the worker is filling a position that is deemed not to be in the National Vocational Training Council’s category, then, currently, the worker must leave the country for a period of 2-4 months cooling period in between his/ her work permit.

The foreign worker will receive a work permit that will clearly identify your company name and address as the only place of employment, for the specified duration of time (1 year), and this is the only legal place and company that the employee can work for. If they were to attempt to work for another company then this act is illegal and the worker would face immediate deportation. Furthermore, it is also illegal for a company to employ a foreign worker without the correct work permit. Work permits are issued specific to the terms of the employment contract and conditions set out by the host company.

However, Outsourcing Work Permits may only be permitted to work to other company if there is a contract signed and stamped with the Outsourcing Company.

The Employer is obligated to:

• Cover round trip transportation and accommodation costs.
• To arrange for the workers to undergo for Medical check-up (FOMEMA) upon their arrival and 2 months before their yearly work permit renewal. The (FOMEMA) is required for upon arrival till the workers 3rd year work permit renewal only.
• To ensure that the Workers Work Permit being renewed 1 month before their expiry.
• All Government Fees are not deducted from the workers salary throughout the workers employment contract.
• Ensure Foreign Workmen Compensation Scheme insurance (FWCS) and Foreign Workers Hospitalization & Surgical (FWHS) are covered during the duration of employment.
• In situations where the employment duration is longer than 12 months (for example – 24 months), the employer may be required and strongly recommended to review and adjust the wage rate the foreign worker will receive after each 12 month period.
• To Register the workers with the Labour Department of Malaysia within 14 days upon arrival and within 14 days after departure.
• Demonstrate continued efforts to recruit and train Local Workers.
• Pay the return ticket back to country of origin upon completion of employment contract.