Malaysia is one of Asia's biggest employers of foreign labour. But recently, cases of deaths, abuse and forced labour have come to light. What is going on? Who is protecting these migrant workers?
Just how much of a change in the legislation could this entail? Human Resources specialist of the Universiti Teknologi MARA (UiTM) Business Management Faculty, and author of "Malaysian Employment Law Practices", Professor Maimunah Aminuddin,
explains, "Hiring is already easy, one can choose to hire or not to hire
on any basis. The only thing which is likely to be affected is termination benefits.
It is also perhaps telling that termination benefits have not been implemented
in Sabah and Sarawak, a possible indication of likely amendments to the EA later
this year."
<P>Professor Maimunah elaborates, "Perhaps employers
are concerned because the courts have given dismissed workers startling quantum
of damages in the last five years or so, including forward wages. However, these
cases have very singular facts, and unusual compensation has not been granted
to workers retrenched. Generally, the Industrial Courts have been very reasonable
in their awards, according the usual method of quantifying compensation. However,
the Industrial Courts come under the auspices of the Industrial Relations Act
1967, not the EA, which means any concerns from employers arising from these cases
are misplaced."</P><P>Labour Law specialist, Deputy Dean of University of
Malaya (UM) Law Faculty, Associate Professor Sharifah Suhana Syed Ahmad, also
agrees, with regret, that termination benefits are likely to be affected in the
proposed changes to the EA. She says, "I am unable to view labour as a commodity.
It would be encouraging if employers changed their mindset, and consider the human
dimension. There are many imponderables involved when workers are retrenched,
not just loss of wages. What about loss of face? Loss of estimation among peers
and oneself? There’s a lot more at stake when you’re dealing with people, it’s
not just a matter of cutting costs."</P><P>The exact changes to the EA has
not been reported so far. However, establishing a retrenchment fund, initially
supported by both the Malaysian Employers Federation (MEF), who has since withdrawn
its support of the fund, and the Malaysian Trades Union Congress (MTUC), is a
safety precaution proposed by Human Resources Minister, Datuk Seri Dr. Fong Chan
Onn.</P><P>Associate Professor Sharifah Suhana says, "When you do something
like this [making it easier for employers to retrench workers], there really is
no choice in the matter. If things become more "flexible", there must
be safety nets. The retrenchment fund could be one of the safety nets, there might
be need for others."</P><P>This safety net is not without its own potential
perils. Professor Maimunah points out a number of unresolved issues: whether both
employer and employee are to contribute; how much to give to those retrenched;
how to prevent abuse; who is to run the fund; how to strike a balance between
preventing abuse and tying up withdrawals with too much red tape. She offers,
"I would suggest a fixed percentage of lost salary for a fixed number of
months. To me, it makes most sense for the Social Security Organisation (Socso)
to administer the fund, since it has all the experience, compared to other similar
bodies. A separate organisation would mean duplication of work."</P><P>However,
perhaps there is a silver lining in the approaching dark cloud for workers covered
by the EA. Amidst whispers of an impending economic downturn, establishing a retrenchment
fund now is timely, especially in light of the current performance of the ringgit
against the US dollar, its strongest since it was de-pegged seventeen months ago.</P><P>It’s
about time the EA is amended. Malaysia doesn’t have a comprehensive employment
or labour code, covering all details of the workplace, including sexual harassment.
With an extensive and standardised overhaul and update of all employment legislation,
perhaps, the Malaysian worker might have something to look forward to when the
EA is amended next.</P><P><I><BR>Daniel is a writer who wishes he could spend
all his time travelling. Views: feedback@thesundaily.com</I></P><P><I>Source:
http://www.sun2surf.com/article.cfm?id=16714</I>
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