THE proposal for employers to obtain a certificate of accommodation (CA) from the Labour Department before getting worker passes is impractical and will affect business continuity, said the Malaysian Employers Federation (MEF) today.

MEF president Syed Hussain Syed Husman said the proposal by the Immigration Department will also delay economic recovery.

He was referring to the proposal that employers first obtain a CA before a temporary foreign worker permit (PLKS) can be issued or renewed.

Immigration director-general Khairul Dzaimee Daud said this is to ensure employers comply with the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446).

“Speedy approval for PLKS by the Immigration Department is of paramount importance, to enable companies to plan their operations to meet demands for products and services from clients,” said Syed Hussain.

He said instead of a CA, a letter of undertaking by companies to comply with Act 446 should be sufficient as a prerequisite requirement for approval of the permit.

“In the event such companies fail to comply with the undertaking, appropriate action may be taken against them.”

Syed Hussain said there is a lack of coordination between local authorities, relevant authorities and the Labour Department on matters relating to approval of worker accommodations.

This lack of coordination has made it hard for employers to obtain a certificate of completion and compliance from local authorities and CA from the Labour Department, he added.

Syed Hussain suggested the setting up of a one-stop centre comprising local authorities, the Immigration Department, Labour Department and relevant departments to speed up the PLKS approval process.

“The approach by the Immigration Department, Labour Department and relevant departments should facilitate rather than prohibit or restrict employers from doing business.”

He said employers face challenges to meet Act 446 – implemented during the Covid-19 pandemic – such as high cost and limited time.

“The authorities should give adequate time for businesses to stabilise and gradually comply with the full requirements of Act 446.

“We thank the government for engaging with industry groups at various platforms and hope our views and recommendations will be considered positively.”

Last week, Human Resources Minister M. Saravanan had in Parliament said the country is facing a labour shortage crisis.

He said now is not the time to raise the fines for employers who fail to comply with Act 446. – October 3, 2021.