PRELIMINARY
Short title and application
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EMPLOYMENT (RESTRICTION) ACT 1968 is Malaysia Act, cited as Act 796 1968, currently marked in force and first recorded in 1968.
Opening note
Part I
Short title and application
In this Act, unless the context otherwise requires—
“Director General” means the Director General of Labour appointed under subsection 3(1);
“employer” means any person who has entered into a contract of service to employ another person as an employee and includes the agent, manager or factor of the first-mentioned person and the word “employ” with its grammatical variations and cognate expressions, shall be construed accordingly;
Act 796
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Act 796
“Minister” means the Minister charged with the responsibility for human resources;
“authorized person” means a person authorized by the Director
General for the purposes of this Act;
“employment permit” means an employment permit issued under section 7;
“business” includes any form of trade, commerce, craftsmanship, calling, profession or other activity carried on for the purpose of gain.
Officers
The Minister may appoint such number of employment officers as he may consider necessary or expedient for the purposes of this Act.
An employment officer appointed under subsection (2) shall be under the direction and control of the Director General.
Part II
NON-CITIZENS OF MALAYSIA
Application of Part II
The Yang di-Pertuan Agong may by order amend or add to the Schedule.
Employment (Restriction)
7
Restrictions of employment of non-citizens
No person shall employ in Malaysia any non-citizen referred to in the Schedule unless there has been issued in respect of that non-citizen a valid employment permit.
Subsection (1) shall have effect notwithstanding any other written law or any term or condition of any contract or agreement.
For the purposes of this section, any person found performing any act normally performed by an employee in any place of employment shall be deemed to have been employed under a contract of service by the employer of that place of employment.
Application for employment permits and renewal of employment permits
Any person who desires to renew an employment permit shall make an application to the Director General or any authorized person in such form as may be prescribed.
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Act 796
Issuance and renewal of employment permits
The Director General may at any time vary or add to any terms, conditions or restrictions in an employment permit.
The Director General may in his discretion at any time and without assigning any reason refuse to issue or to renew an employment permit or cancel or suspend an employment permit.
Any person aggrieved by a decision of the Director General under subsection (1), (2) or (3) may, within twenty-one days from the date of such decision, appeal to the Minister whose decision shall be final and shall not be subject to appeal or review in any court.
Particulars of new employment of non-citizens
An employer shall, before employing any non-citizen referred to in the Schedule, furnish the Director General with particulars of such employment and of such non-citizen in such form as may be prescribed.
Termination of employment of non-citizens
Every employer referred to in subsection (1) who terminates the services of an employee or ceases to employ such employee pursuant to subsection (1) or for any other reasons shall notify the Director General in writing within fourteen days of such termination or cessation.
The termination of the services of an employee pursuant to subsection (1) shall not be—
the subject matter of a trade dispute or of conciliation proceedings or any method of redress whether under any written law or not.
Validity of employment permits
Employment (Restriction)
An employment permit shall unless sooner cancelled or suspended be valid for a period of not exceeding two years.
Onus of truth of application
The onus of proving the truth of the contents of an application for an employment permit under section 6 shall be on the person who makes the application.
Part III
Registration of non-citizens
The Yang di-Pertuan Agong may by notification in the
Gazette specify the class or classes of non-citizens or the category or categories of employment or business to whom or to which subsection (1) shall apply.
Subject to subsections (1) and (2), every non-citizen shall apply for registration in the prescribed form to the Director
General.
The Director General shall keep and maintain a register of persons registered under this Part.
The register to be kept and maintained by the Director
General under subsection (4) shall be in such form as may be prescribed.
Part IV
Power of entry and request for production of documents, etc.
An employment officer may—
require any person, whom he has reason to believe to be in possession of any document or information relevant to the carrying out of this Act, to produce any such document or to give such information; or
question any person or require any person by notice in writing to attend at such time and at such place as may be stated in such notice in regard to any document or information which, in the opinion of the employment officer, is relevant to the carrying out of this Act, and which he believes to be in such person’s possession or knowledge.
Employment (Restriction)
11
Loss of employment permits
A replacement employment permit may be issued by the
Director General or authorized person in place of the employment permit which has been lost, destroyed or defaced.
Where a person referred to in subsection (1), after notifying the loss of his employment permit, recovers possession of such employment permit he shall forthwith notify the Director General or authorized person of such recovery.
Where any person referred to in subsection (1) recovers possession of his employment permit after he has been issued with a replacement employment permit under subsection (2), he shall forthwith return the employment permit so recovered for cancellation.
Any person who finds or comes into possession of an employment permit other than his own shall forthwith deliver it to the Director General or any authorized person, or to the nearest police station, or post office.
False information
Any person who makes any statement or furnishes any information to the Director General or any employment officer or any authorized person under this Act or any rules made under this Act which he knows or has reason to believe to be false in any material particular or omits any particular which he knows or has reason to believe is a material particular shall be liable to a fine not exceeding one thousand ringgit or to imprisonment for a term not exceeding one year or to both.
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Act 796
Custody and surrender of employment permits
When an employment permit has been cancelled or has expired the person in respect of whom the employment permit was issued shall forthwith surrender the employment permit to the Director General or any authorized person.
Penalties
Any person who forges, alters or tampers with any employment permit commits an offence and shall, on conviction, be liable to a fine not exceeding one thousand ringgit or to imprisonment for a term not exceeding six months or to both.
Every omission or neglect to comply with, and every act done or attempted to be done contrary to the provisions of this
Act or of any regulations made under this Act, or any breach of the conditions and restrictions subject to or upon which an employment permit is issued under this Act, shall be an offence against this Act and the offender shall, on conviction, be liable, if no penalty is expressly provided, to a fine not exceeding one thousand ringgit or to imprisonment for a term not exceeding six months or to both and, in the case of a continuing offence, to a further fine not exceeding one hundred ringgit a day:
Provided that no person shall be convicted under this section by reason only of the failure to comply with paragraph 13(2)(a)
if within forty-eight hours after being so required he produces or gives the document or information in his possession.
Employment (Restriction)
13
Effect of contravention of section 9
Where in respect of the employment of a non-citizen there has been a contravention of section 9, such non-citizen shall not by reason only of such a contravention be deemed to be employed under an illegal contract of employment.
Exemption
members of any visiting force within the meaning of any law for the time being in force regulating visiting forces present in Malaysia;
persons duly accredited as diplomatic or consular representatives to Malaysia;
persons upon whom the immunities and privileges referred to in the Schedule to the Diplomatic Privileges (Vienna
Convention) Act 1966 [Act 636] and in the Schedule to the
Consular Relations (Vienna Convention) Act 1999 [Act 595]
have been conferred under those Acts;
private servants or other employees of persons referred to in paragraphs (a), (b) and (c) being employees recruited for such employment from the country of the visiting force or the country which the person referred to in paragraph (b) or (c) represents in Malaysia;
officers of any international organization declared by the Yang di-Pertuan Agong under section 3a of the
Diplomatic Privileges (Vienna Convention) Act 1966; and
The Yang di-Pertuan Agong may by order exempt any person or class of persons from any or all of the provisions of this Act.
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Act 796
Regulations
The Minister may make regulations generally for the carrying out of the provisions of this Act, and such regulations may—
prescribe such fees or charges as may be necessary for the purposes of this Act;
prescribe the forms of register, applications and permits or other forms to be kept, used or issued;
provide for the procedure of replacement of lost or mutilated employment permits;
provide for the manner in which and the places at which application for employment permits shall be made;
provide for the information and documents to be furnished for the purposes of applications for employment permits;
provide for the taking and recording of photographs of persons applying for employment permits;
provide for the making of corrections and alterations in the register and employment permits;
require the submission of any return by any person relating to the employment of non-citizens to whom Part II have been applied in such form as may be prescribed;
prescribe any act or omission in contravention of any such regulation shall be an offence; and
provide generally for the purpose of giving effect to this
Act.
Employment (Restriction)
[Section 4]
CLASS OR CLASSES OF PERSONS AND CATEGORY OR
CATEGORIES OF EMPLOYMENT
Every non-citizen employed in any business, industry or undertaking, including any Department of the Federal Government or State Government, any local authority and any statutory body.
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Act 796
Act 796
(Revised—2017)
Particulars under paragraphs 7(ii) and (iii) of the Revision of
Laws Act 1968 [Act 1]
LIST OF AMENDMENTS
Amending law
Short title
In force from
P.U. (A) 221/1969
Essential (Modifications of Employment
(Restriction) Act, 1968) Regulations,
1969 01-07-1969
P.U. (A) 222/1969
Employment (Restriction) (Schedule)
Order, 1969 01-07-1969
P.U. (A) 209/1970
Employment (Restriction) (Schedule)
Order, 1972 01-07-1970
P.U. (A) 67/1972
Employment (Restriction) (Schedule)
(Order) 1972 10-03-1972
Act A117
Employment (Restriction) (Amendment)
Act 1972 04-04-1972
LIST OF LAWS OR PARTS THEREOF SUPERSEDED
No.
Title
Act 353
Employment (Restriction) Act 1968
Employment (Restriction)
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Act 796
(Revised—2017)
LIST OF SECTIONS AMENDED
Section
Amending authority
In force from 3
Act A117 04-04-1972 5
Act A117 04-04-1972 5
P.U. (A) 209/1970 01-07-1970
Act A117 04-04-1972 9
Act A117 04-04-1972 11
Act A117 04-04-1972 20
Act A117 04-04-1972
P.U. (A) 222/1969 01-07-1969
P.U. (A) 67/1972 10-03-1972
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Act 796
Act 796
(Revised—2017)
LIST OF AMENDMENTS MADE BY THE COMMISSIONER OF
LAW REVISION UNDER SECTION 6 OF THE REVISION OF
LAWS ACT 1968 [ACT 1]
Provision
Particulars of amendments
Authority for amendment
Table of contents
Arrangement of sections altered paragraph 6(1)(vii)
Throughout the
Act
1. Word “Director General”
substituted for “Commissioner”
paragraph 6(1)(xvii)
2. Words “non-citizen” and
“non-citizens” substituted for
“person not being a citizen”
and “persons not being citizens”
respectively paragraphs 6(1)(iii) and
(xxi)
Long title
Words “such non-citizen”
substituted for “such person”
paragraphs 6(1)(iii) and
(xxiv)
Effective date
Semicolon substituted for comma paragraph 6(1)(xvi)
Enacting clause
Omitted subparagraph 6(1)(i)(f)
subsection 1(2)
Word “applies” substituted for
“shall apply”
paragraph 6(1)(iii)
section 2
1. I n t e r p r e t a t i o n s e c t i o n rearranged according to the national language text with consequential alterations made subparagraphs 6(1)(iv)(a)
and paragraph (xxiv)
2. In the definition of “employer”—
a. word “another” substituted for “any other”;
paragraph 6(1)(xv)
Employment (Restriction)
19
Provision
Particulars of amendments
Authority for amendment
b. words “the first-mentioned”
substituted for “such first mentioned”
paragraphs 6(1)(xvi) and
(xxiv)
3. In the definition of “Minister”, word “human resources”
substituted for “labour”
paragraphs 6(1)(iii) and
(xvii)
4. The definition of ‘“Director
G e n e r a l ”
m e a n s t h e
Director General of Labour appointed under subsection 3 ( 1 ) . ’ s u b s t i t u t e d f o r
‘“Commissioner” means the
Commissioner of Employment appointed under subsection 3(1);’
paragraphs 6(1)(iii),
and (xvii)
4. The definition of “appointed date” omitted subparagraph 6(1)(i)(aa)
subsection 3(1)
1. Words “the Yang di-Pertuan
Agong shall appoint” substituted for “there shall be appointed by Yang di-Pertuan Agong”
paragraphs 6(1)(iii) and
(xxiv)
2. Words “Director General of Labour” substituted f o r “ C o m m i s s i o n e r o f
Employment”
paragraph 6(1)(xvii)
3. Words “Deputy Director
General of Labour” substituted for “Deputy Commissioner of
Employment”
paragraph 6(1)(xvii)
4. W o r d s
“ A s s i s t a n t
Commissioners for Labour”
substituted for “Assistant
Commissioners”
paragraph 6(1)(xvii)
paragraph 5(1)(a)
Words “such non-citizen”
substituted for “such person”
paragraphs 6(1)(iii) and
(xxiv)
paragraph 5(1)(b)
Word “non-citizen” substituted for “latter person”
paragraphs 6(1)(iii) and
(xxiv)
subsection 5(2)
Word “of” before the word “any”
omitted paragraphs 6(1)(iii) and
(xxiv)
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Act 796
Provision
Particulars of amendments
Authority for amendment subsection 5(3)
Comma inserted after the word
“section”
paragraph 6(1)(xvi)
section 7
In the shoulder note, word
“Issuance” substituted for “Issue”
paragraphs 6(1)(iii) and
(xxiv)
section 8
Words “such non-citizen”
substituted for “such person”
paragraphs 6(1)(iii) and
(xxiv)
section 9
Omitted subparagraph 6(1)(i)(aa)
section 10
Renumbered as section 9
paragraph 6(1)(xii)
paragraph 10(1)(a)
Omitted subparagraph 6(1)(i)(aa)
paragraph 10(1)(b)
Transposed into subsection 9(1)
after the words “the Director
General” with consequential alterations made paragraphs 6(1)(xiii),
and (xxiv)
subsection 10(2)
Words “whatsoever,” omitted paragraphs 6(1)(xvi)
and (xxi)
section 11
Renumbered as section 10
paragraph 6(1)(xii)
section 12
Renumbered as section 11
paragraph 6(1)(xii)
section 13
Renumbered as section 12
paragraph 6(1)(xii)
subsection 13(2)
Comma after the word “business”
omitted paragraph 6(1)(xvi)
subsection 13(3)
Comma inserted after the word
“(2)”
paragraph 6(1)(xvi)
section 14
Renumbered as section 13
paragraph 6(1)(xii)
section 15
Renumbered as section 14
paragraph 6(1)(xii)
subsection 15(1)
Words “the matter” substituted for “the same”
paragraphs 6(1)(iii)
and (xxiv)
subsection 15(3)
1. Words “referred to in subsection (1),” substituted for
“aforesaid”
paragraphs 6(1)(xvi)
and (xxi)
2. Comma inserted after the words
“his employment permit”
paragraph 6(1)(xvi)
subsection 15(4)
Words “referred to in subsection
” substituted for “aforesaid”
paragraphs 6(1)(xvi)
and (xxi)
section 16
1. Renumbered as section 15
paragraph 6(1)(xii)
Employment (Restriction)
21
Provision
Particulars of amendments
Authority for amendment
2. Word “of” before the words
“any rules” omitted paragraph 6(1)(xv)
3. Words “under this Act”
substituted for “thereunder”
paragraph 6(1)(xxiv)
4. Word “either” omitted paragraph 6(1)(xxi)
5. Word “to” inserted before the word “both”
subparagraph 6(1)(iv)(b)
section 17
Renumbered as section 16
paragraph 6(1)(xii)
section 18
Renumbered as section 17
paragraph 6(1)(xii)
subsection 18(1)
1. Comma after the word “person”
omitted paragraph 6(1)(xvi)
2. Words “section 12” substituted for “section 13”
paragraph 6(1)(xix)
3. Words “commits an offence and shall,” substituted for
“shall be guilty of an offence and shall”
subparagraph 6(1)(iv)(b)
4. Comma after the word
“conviction” inserted subparagraph 6(1)(iv)(b)
5. Word “to” inserted before the word “both”
subparagraph 6(1)(iv)(b)
subsection 18(2)
1. Word “commits” substituted for “shall be guilty of”
subparagraph 6(1)(iv)(b)
2. Comma inserted after the words
“shall” and “conviction”
subparagraph 6(1)(iv)(b)
3. Word “for” substituted for “to”
after the word “imprisonment”
subparagraph 6(1)(iv)(b)
4. Word “to” inserted before the word “both”
subparagraph 6(1)(iv)(b)
subsection 18(3)
1. Words “the provisions of”
inserted after the words
“contrary to”
paragraph 6(1)(xxiv)
2. Words “under this Act”
substituted for “thereunder”
paragraph 6(1)(xxi)
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Act 796
Provision
Particulars of amendments
Authority for amendment
3. Words “on conviction, be liable, if no penalty is expressly provided,” substituted for “if no penalty is expressly provided, be liable on conviction”
subparagraph 6(1)(iv)(b)
and paragraphs 6(1)(iii),
and (xvi)
4. Word “to” inserted before the word “both”
subparagraph 6(1)(iv)(b)
subsection 18(3) -
proviso
Words “paragraph 13(2)(a)”
substituted for “paragraph 14(2)
”
paragraph 6(1)(xix)
section 19
1. In the shoulder note, words
“section 9” substituted for
“section 10”
paragraph 6(1)(xix)
2. Renumbered as section 18
paragraph 6(1)(xii)
3. Words “section 9” substituted for “section 10”
paragraph 6(1)(xix)
4. Words “such non-citizen”
substituted for “such person”
paragraphs 6(1)(iii) and
(xxiv)
section 20
Renumbered as section 19
paragraph 6(1)(xii)
paragraph 20(1)(a)
1. Word “visiting forces”
substituted for “Visiting
Forces”
paragraph 6(1)(iii)
2. Semicolon substituted for full stop paragraph 6(1)(xvi)
paragraph 20(1)(b)
Semicolon substituted for full stop paragraph 6(1)(xvi)
paragraph 20(1)(c)
1. Wo r d s “ t h e S c h e d u l e ”
substituted for “Part II or
Part III of the First Schedule”
paragraph 6(1)(xxi)
2. Words “Diplomatic Privileges
(Vienna Convention) Act 1966
[Act 636] and in the Schedule to the Consular Relations
(Vienna Convention) Act 1999 [Act 595] have been conferred under those Acts”
substituted for “Diplomatic and
Consular Privileges Ordinance 1957 [Ord. 53 of 1957] have been conferred under that
Ordinance”
paragraph 6(1)(xix)
Employment (Restriction)
23
Provision
Particulars of amendments
Authority for amendment paragraph 20(1)(d)
1. Word “visiting force” substituted for “Visiting Force”
paragraph 6(1)(iii)
2. Semicolon substituted for full stop paragraph 6(1)(xvi)
paragraph 20(1)(e)
1. Word “organization” substituted for “organisation”
paragraph 6(1)(xxiv)
2. Words “section 3a” substituted for “section 4”
paragraph 6(1)(xix)
3. Words “Diplomatic Privileges
(Vienna Convention) Act 1966”
substituted for “Diplomatic and
Consular Privileges Ordinance 1957”
paragraph 6(1)(xix)
4. Word “and” inserted at the end of paragraph (e)
paragraph 6(1)(iii)
subsection 20(2)
Word “order” substituted for
“Order”
paragraph 6(1)(xxiv)
section 21
Renumbered as section 20
paragraph 6(1)(xii)
paragraph 21(i)
Words “the provisions of”
omitted paragraph 6(1)(xxi)
paragraph 21(j)
Word “and” inserted after the word “offence;”
paragraph 6(1)(iii)
Words “undertaking,” substituted for “undertaking whatsoever”
paragraphs 6(1)(xvi)
and (xxi)
KUALA LUMPUR