Minister of Human Resources V. Sivakumar through a press conference held today (August 22), has urged employers in Malaysia to ensure that the payment of wages to all their employees whether local or foreign must be paid through bank accounts.
This is in line with the provisions under Section 25 and 25(A) of the Employment Act 1955 [Act 265].
Payment of wages in cash or check can only be done at the request of the employee himself and with permission from the Director General of the Department of Labor of Peninsular Malaysia as stated under Section 25A(1) of the same act.
Any employer who does not make salary payments through the bank account as stipulated is considered to have committed an offense and if convicted may be fined not more than Ringgit Malaysia Fifty Thousand (RM50,000.00) for an offence.
This call was made following the emergence of the issue of forced labor through allegations that there are a few workers, especially foreign workers, who are not paid wages or wages are paid late and given in cash. It is common knowledge that workers not being paid wages or being paid late is one of the 11 elements of forced labor outlined by the International Labor Organization (ILO).
The ministry stated that the employers’ compliance with the payment of wages through this bank will be one of the mechanisms that allow the Government to monitor the activities of the employers and it will to some extent be a bulwark to reduce allegations regarding the issue of forced labour.
In fact, according to the Minister of Human Resources, compliance with the act in force is very important for employers, especially those involved in the export of goods.
Employers accused of engaging in forced labor will face sanctions and their products will not be allowed to enter the importing country’s market. This will lead to a significant loss. In fact, the image of the company and even the country will be bad on the international stage. Things like this are to be avoided.
Accordingly, the ministry urges employers to continue to comply with all enforced acts. In fact, enforcement activities by all departments and agencies under the ministry will continue to be implemented in accordance with the legislation under the assigned jurisdiction. This enforcement needs to be done continuously to ensure that the welfare of the workers is preserved and the harmony of the country’s labor continues to be strengthened and eradicate any forced labor practices in the country.
