Observation (CEACR) - adopted 2020, published 109th ILC session (2021)

Migration for Employment Convention (Revised), 1949 (No. 97) - Malaysia - Sabah (Ratification: 1964)

Article 6(1)(a) of the Convention. No less favourable treatment. Foreign worker levy. In its previous comments, the Committee had noted that in several sectors, an annual foreign worker levy was to be paid to the Immigration Department and that there was an ambiguity as to whether this levy could be deducted from the workers’ wage. The Committee notes that in its report, the Government indicates that: (1) on 1 January 2018, a policy was introduced to give effect to the Government’s intention that all levies imposed on the hiring of foreign workers shall be borne by employers; and (2) a Steering Committee on the Multi-tier Levy was established to examine the impact of the levy system. Recalling that the deduction of levies from the wages of foreign workers may result in unfavourable treatment of these workers as compared to nationals, contrary to Article 6(1)(a) of the Convention, the Committee asks the Government to indicate what is: (i) the current legal situation in light of the new policy introduced in 2018 and the expected results from these changes (ii) the exact role of the newly established Steering Committee on the Multi-tier Levy and how it relates to this intention; and (iii) the outcome of the examination conducted by the Steering Committee on the deduction of the levies.

Article 6(1)(b). No less favourable treatment. Social security benefits. In its previous comments, the Committee urged the Government to adopt measures to end the differences in treatment between nationals and foreign workers with respect to the payment of social security benefits, and in particular with regard to compensations in cases of industrial injuries. In this regard, the Committee notes the conclusions adopted in 2018 by the Committee on the Application of Standards (CAS) of the International Labour Conference on the application of the Equality of Treatment (Accident Compensation) Convention, 1925 (No. 19), by Malaysia Peninsula and Sarawak. The Committee notes with satisfaction the information provided by the Government that foreign workers are now covered under the Employees’ Social Security Act.

The Committee is raising other matters in a direct request addressed directly to the Government.