PRIVATE EMPLOYMENT AGENCIES ACT 1981

This Act shall not apply to the Federal Government and

State Governments.

Interpretation

in respect of Peninsular Malaysia, the Director General of Labour appointed under subsection 3(1) of the

Employment Act 1955 [Act 265];

in respect of Sabah, the Director of Labour appointed under subsection 3(1) of the Labour Ordinance

[Sabah Cap. 67]; or

in respect of Sarawak, the Director of Labour appointed under subsection 3(1) of the Labour Ordinance

[Sarawak Cap. 76];

“employer” means any person who engages a private employment agency to recruit an employee for himself;

“fee” means the fee as specified in the First Schedule;

“job seeker” means a person who is registered with a private employment agency for the purpose of looking for an employment or is offered an employment or has accepted an offer of employment, but not including a non-citizen;

“labour officer” means the officer appointed under subsection 3(2)

of the Employment Act 1955, subsection 3(1a) of the Labour

Ordinance [Sabah Cap. 67] or subsection 3(1a) of the Labour

Ordinance [Sarawak Cap. 76], as the case may be;

“licence” means a licence granted under section 9a;

“Minister” means the Minister charged with responsibility for human resources;

“money guarantee” means a guarantee in the form of cash or financial guarantee issued by a licensed bank under the Financial

Services Act 2013 [Act 758] or a licensed Islamic bank under the

Islamic Financial Services Act 2013 [Act 759] but not including a licensed international Islamic bank, which is deposited pursuant to section 14c;

Private Employment Agencies 7

“prescribed” means prescribed by the Minister by regulations made under this Act;

“private employment agency” means a body corporate which is incorporated under the Companies Act 2016 [Act 777] and is granted a licence under this Act to carry on recruiting activity;

“recruiting” means activities which have been carried on by any person, including advertising activities, as intermediaries between an employer and a job seeker to—

offer to look for an employment, offer an employment or obtain an employment, for a job seeker; or

offer to look for an employee, offer an employee or obtain an employee, for an employer.

Functions and powers of the Director General

to administer and regulate all matters relating to the licensing of a private employment agency;

to regulate all matters relating to the recruiting activity carried on by a private employment agency including issuing a written direction;

to collect, receive, utilize or forfeit money guarantee deposited by a private employment agency;

to direct a private employment agency to submit any information and documents relating to the private employment agency and its activities;

to require submission of any information by a private employment agency to assist the Director General in the performance of his functions; and

to do anything incidental to any of his functions under this Act.

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The Director General shall have the powers to do all things necessary or expedient for or in connection with the performance of his functions under this Act.

Delegation of functions and powers of the Director General 4a.  (1)  Subject to subsection (2) and any limitation as may be prescribed by the Minister, a labour officer may exercise all the function and powers conferred upon the Director General under this Act and every function and power so exercised shall be deemed to have been exercised for the purposes of this Act.

A labour officer shall not exercise any of the functions and powers of the Director General under this Act unless he is in possession of an authority card signed by the Director General authorizing him to exercise such functions and powers.

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Private Employment Agencies 9

Application for a licence

The application shall be accompanied by the processing fee as specified in the First Schedule.

Upon receiving an application under subsection (1), the

Director General may require the applicant to provide further particulars, information or documents as he thinks necessary.

If any particulars, information or documents required under subsection (3) are not provided by the applicant within the time determined by the Director General, the application shall be deemed to have been withdrawn without prejudice to a fresh application being made by the applicant.

If an application under subsection (1) is withdrawn at any time before the application is approved or refused, the processing fee paid under subsection (2) shall not be refunded.

Compliance with conditions imposed on licence application

the applicant is a body corporate incorporated under the

Companies Act 2016—

with minimum paid-up capital as specified in the

Second Schedule; and

at least fifty-one per cent of the total shares of the company are held by citizens of Malaysia;

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the director of the company, who is named in the application form who is in charge of the affairs of the private employment agency—

is a citizen of Malaysia;

is not an undischarged bankrupt; and

has not been convicted of any offence under any written law in relation to anti-trafficking in persons and forced labour;

the applicant has suitable premises for carrying on recruiting activity as determined by the Director General; and

the applicant shall have the words “Agensi Pekerjaan”

precede the name of the company.

Notwithstanding subsection (1), the Director General may impose any other conditions as he thinks necessary.

Grant of or refusal to grant licence 9a.  (1)  Upon receiving and having considered the application for a licence under section 8, the Director General may grant or refuse to grant a licence.

The Director General shall issue to the applicant a written notice of his decision whether to grant or refuse to grant a licence under subsection (1).

If the application under subsection (1) is approved, the applicant shall, within thirty days from the date of the notice under subsection (2), pay the licence fee as specified in the First

Schedule and deposit the money guarantee as specified in the

Second Schedule for the purposes of granting the licence.

If the applicant fails to pay the licence fee and money guarantee within thirty days as specified under subsection (3), the Director General may refuse to grant the licence without prejudice to a fresh application being made by the applicant.

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Power to impose conditions 9b. Subject to this Act, the Director General may impose any conditions as he thinks necessary upon granting a licence under section 9a and may amend the conditions imposed.

Duration of licence

granting of the licence; or

renewal of the licence, as the case may be.

Renewal of licence

The Director General may, after giving consideration to the application for the renewal of licence under subsection (1)—

renew the licence, with or without conditions; or

refuse to renew the licence.

If the Director General renews the licence, he shall notify the applicant of his decision by written notice and the applicant shall, within thirty days from the date of the notice, pay the licence fee as specified in the First Schedule and deposit the money guarantee as specified in the Second Schedule.

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The Director General shall refuse the application for the renewal of licence if—

the application is made after the expiry of the licence;

the application is not made in accordance with subsection (1);

the applicant fails to remedy the contravention or take the corrective action within the period as may be specified by the Director General pursuant to subsection 11a(6);

or

the applicant fails to comply with any of the provisions of this Act or any regulations made under this Act.

If the renewal of licence is refused under paragraph (2)(b), the Director General shall notify the applicant of his decision by written notice.

An application under subsection (1) may be withdrawn at any time before the application is approved or refused but the fee paid under subsection (1) shall not be refunded.

The Director General may consider any application to renew the licence which is received after the specified period under subsection (1) but before the expiry of the licence.

If the Director General renews the licence under subsection (7), a processing fee as specified in the First Schedule at double the rate shall be imposed for the purpose of the renewal.

Suspension or revocation of licence 11a.  (1)  The Director General may, by written notice to a private employment agency and without any compensation, suspend or revoke a licence granted under this Act if he is satisfied that the private employment agency—

has contravened or failed to comply with any of the provisions of this Act or any regulations made under this Act;

Private Employment Agencies 13

has failed to comply with any conditions imposed by the

Director General;

has been convicted of an offence under this Act or the director of the private employment agency has been detained under any written law in relation to anti-trafficking in persons and forced labour;

has wound up or otherwise dissolved;

has failed to comply with any written directions issued by the Director General under this Act;

has induced the granting of the licence by a false representation of fact;

has used the licence granted under this Act for an unlawful purpose; or

has ceased to carry on recruiting activities.

The Director General shall not suspend or revoke a licence unless he is satisfied that, after giving the private employment agency an opportunity to make any representation in writing as to why the licence should not be suspended or revoked within the period specified in the written notice, the licence should be suspended or revoked.

After the expiry of the period specified in the written notice and after considering the representation made under subsection (2), the Director General shall decide whether or not to suspend or revoke the licence.

The Director General shall inform a private employment agency of his decision under subsection (3) by written notice.

The private employment agency shall after receipt of the written notice on the suspension or revocation under subsection (4)—

advertise the notice of cessation of operation in at least one national language newspaper having nationwide circulation;

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display the notice of cessation of operation in a conspicuous space at the private employment agency’s premises; and

publish in the private employment agency’s website continuously on the cessation of operation, if any.

If a licence has been suspended under subsection (3), the

Director General shall require the private employment agency to remedy the contravention or to take corrective action within the period as specified by the Director General.

If the Director General is satisfied that the private employment agency has failed to remedy the contravention or take corrective action as required under subsection (6), the Director General shall revoke the licence of the private employment agency.

A private employment agency may, within twenty-one days from the date of receipt of a revocation notice from the Director

General, appeal to the Minister.

If a licence—

has been revoked, the licence shall have no effect from the date of revocation and the private employment agency shall within fourteen days from the date of revocation of the licence, surrender the licence to the Director

General; or

has been suspended, the licence shall have no effect during the period of suspension.

Place of business to be as stated in licence

Any private employment agency which contravenes subsection

commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit.

Replacement of licence 13a.  (1)  If the licence of a private employment agency is lost, destroyed or damaged, the private employment agency shall apply for a copy of the licence from the Director General in such form and manner as determined by the Director General.

The application under subsection (1) shall be accompanied by the processing fee for replacing the licence as specified in the

First Schedule.

Any private employment agency which contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit.

Assignment or transfer of licence 13b.  (1)  A private employment agency shall not assign or transfer any licence granted under this Act to any person unless with the prior written approval of the Director General.

Any private employment agency which contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Rent or lease of licence 13c.  (1)  A private employment agency shall not rent out or lease any licence granted under this Act to any person.

Any private employment agency which contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

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Identification document 13d.  (1)  A private employment agency which has been granted a licence under section 9a shall apply to the Director General, in such form and manner as determined by the Director General, for an identification document of its employees who carry out recruiting activities.

The private employment agency shall give the identification document to its employees who carry out recruiting activities.

The Director General may impose any condition for the purpose of granting an identification document to the private employment agency.

Any private employment agency which contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit.

Any employee of a private employment agency who fails to produce an identification document when required while carrying out any recruiting activity commits an offence and shall, on conviction, be liable to a fine not exceeding two thousand ringgit.

If an identification document is lost, destroyed or damaged, the private employment agency shall apply for a replacement of the identification document to the Director General and the application shall be accompanied by the processing fee as specified in the First Schedule.

Any private employment agency which contravenes subsection

commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit.

Establishment of branch 13e.  (1)  A private employment agency which intends to establish a branch shall make an application to the Director General for a licence to carry out recruiting activities in the branch.

The conditions as specified under section 9 shall apply for the application of licence under this section.

Every application of licence for establishment of the branch shall be made to the Director General in such form and manner

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as determined by the Director General and shall be accompanied by the processing fee as specified in the First Schedule.

The Director General shall issue the applicant a written notice of his decision whether to grant or refuse to grant a licence under subsection (1).

If the application under subsection (1) is approved, the applicant shall, within thirty days from the date of the notice under subsection (4), pay the licence fee as specified in the First

Schedule and deposit the money guarantee as specified in the

Second Schedule.

If the applicant fails to pay the licence fee and money guarantee within thirty days as specified under subsection (5), the Director General may refuse to grant the licence without prejudice to a fresh application being made by the applicant.

Any private employment agency which contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for three years or to both.

Application for changing category of licence 13f.  (1)  A private employment agency may apply to the Director

General to change its category of licence in accordance with the categories of licences as specified in the Second Schedule in such form and manner as determined by the Director General and the application shall be accompanied by the processing fee as specified in the First Schedule.

The Director General may, after considering the application made under subsection (1), approve or refuse the application.

If the Director General approves such application under subsection (2), the Director General shall issue a written notice to the applicant, and within a period of thirty days from the date of a written notice, the applicant shall pay the licence fee as specified in the First Schedule and deposit the money guarantee as specified in the Second Schedule.

If the applicant fails to pay the licence fee and money guarantee within thirty days as specified under subsection (3), the Director General may refuse to grant the licence without prejudice to a fresh application being made by the applicant.

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If the Director General refuses the application under subsection (2), the Director General shall notify the applicant by a written notice of his decision.

Notice of cessation of operation 13g.  (1)  A private employment agency which intends to cease operation at any time before the date of the expiry of the licence or does not intend to renew the licence shall, within the period of at least sixty days from the date of cessation of operation—

submit a written notice to the Director General;

advertise the notice of cessation of operation once in at least one daily national language newspapar nationwide;

display the notice of cessation of operation in an appropriate and conspicuous area of the premises of the private employment agency until the last date of the operation;

and

publish the notice of cessation of operation on its website continuously until the date of cessation, if any.

Any private employment agency which contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a period not exceeding two years or to both.

Fees for services

(Deleted by Act A1554).

Registration fee 14a.  A private employment agency may impose registration fee as specified in the First Schedule on any job seeker for all

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categories of employment within or outside Malaysia upon the registration of the job seeker with the private employment agency.

Placement fee 14b.  (1)  A private employment agency may impose placement fee as specified in the First Schedule on any job seeker or non-citizen employee upon the acceptance of an offer of employment by them.

The placement fee imposed under subsection (1) may be paid by an employer of the job seeker or non-citizen employee.

If the placement fee is paid in accordance with subsection (2), no placement fee shall be demanded by the private employment agency from the job seeker or non-citizen employee.

Money guarantee 14c. Upon the grant of a licence by the Director General under section 9a, a private employment agency shall deposit a money guarantee to the Director General in accordance with the category of licence as specified in the Second Schedule.

Utilization of money guarantee by the Director General 14d.  (1)  The Director General may, upon giving prior notice to the private employment agency, utilize the money guarantee deposited under this Act for the purpose of ensuring the responsibilities of the private employment agency to the job seeker, non-citizen employee or the employer has been fulfilled.

If the Director General uses the money guarantee under subsection (1), the private employment agency shall issue additional deposit in the form of money guarantee so that the total sum of the money guarantee shall be maintained at all times to be of the value as specified in the Second Schedule after receiving the notice for additional deposit from the Director General.

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If the private employment agency fails to deposit the additional money guarantee within the period specified in the notice referred to in subsection (2) issued by the Director General, the Director General may issue a notice to suspend the private employment agency’s licence.

If the private employment agency fails to deposit the additional money guarantee within the period as specified in the suspension notice, the Director General shall revoke the private employment agency’s licence.

Return of money guarantee 14e.  (1)  The Director General may return a money guarantee to a private employment agency, subject to any deduction, upon a written application from the private employment agency when—

the private employment agency has ceased operation;

the licence of the private employment agency has been revoked; or

the licence of the private employment agency has expired and no application for renewal of licence has been made by the private employment agency.

The Director General may impose any terms and conditions on the private employment agency upon receiving the application under subsection (1) for the purpose of approval.

Upon the approval of the application under subsection (2), the money guarantee shall be returned within ninety days to the private employment agency from the date of the approval.

Notwithstanding subsection (2), the Director General may, return the money guarantee to a private employment agency as soon as possible where there is a change in the category of licence of the private employment agency.

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Forfeiture of money guarantee 14f.  (1)  If a private employment agency has ceased operation or its licence has been revoked or has expired, the private employment agency shall claim its money guarantee within twelve months from the date of the cessation of operation or expiration of licence.

If the private employment agency fails to claim its money guarantee within the period specified in subsection (1), the Director

General shall, by notification in the Gazette, notify the relevant private employment agency that their money guarantee will be forfeited after the expiration of three months from the date of the Gazette.

The money guarantee which is forfeited under subsection (2) shall be paid into the Federal Consolidated Fund.

15–17.  (Deleted by Act A1554).

Advertisement

the licence number; and

correct information relating to the advertisement.

Any private employment agency which contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment not exceeding one year or to both.

Preparation, maintenance and keeping of records

records of registration of job seekers;

records of registration of employers;

records of vacancies of employment;

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records of placement of job seekers and for non-citizen employees;

records of fees collected; and

any other records as may be required by the Director

General.

A private employment agency shall keep the records for a period of not less than six years from the date after it is recorded.

A private employment agency shall submit all the records under subsection (1) if the Director General, by written direction, requires the private employment agency to submit such records.

A private employment agency which contravenes subsection (1), (2) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding twenty thousand ringgit.

Notification of change in information furnished 19a.  A private employment agency shall notify the Director

General in writing of the occurrence of any material change in any information furnished to the Director General in relation to-

information relating to all the records under section 19;

the director who is named in the application form who is in charge of the affairs of the private employment agency; and

any other information or a written explanation as required by the Director General, in respect of any information furnished by the private employment agency.

The Minister may, after considering the appeal under subsection (1), confirm, reverse or vary the decision of the

Director General.

For the avoidance of doubt, an appeal made under subsection (1), does not suspend the decision being appealed against.

Power to make regulations

Without prejudice to the generality of subsection (1), regulations may be made for all or any of the following purposes:

prescribing any matter which is required under this Act to be prescribed; or

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prescribing a fine not exceeding two hundred and fifty thousand ringgit for the contravention of or failure to comply with any of the provisions of any regulations made under this Act.

Power to amend Schedules 27a.  The Minister may, by order published in the Gazette, amend any of the Schedules.

Offences and penalties

imposes or receives personally or through another person, for his services, any amount greater than the fee as specified in the First Schedule;

knowingly deceives any job seekers, employers or non-citizen employees by giving false information; or

contravenes any provisions of this Act or any subsidiary legislation made under this Act, commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding one year or to both.

that the offence was committed without his knowledge, consent or connivance; and

that he had taken all reasonable precautions and exercised due diligence to prevent the commission of the offence.

Prosecution

any offence under this Act and any regulations made under the Act that may be compounded;

the criteria for compounding such offence; and

the method and procedure for compounding such offence.

The Director General may, with the consent in writing of the

Public Prosecutor, compound any offence, except offences under subsections 7(2), 13b(2), 13c(2), 13e(7), 13g(2), 18(2) and section 28 committed by any person under this Act or any regulations made under this Act and prescribed to be a compoundable offence by making a written offer to the person suspected to have committed the offence to compound the offence upon payment to the Director General of such amount of money not exceeding fifty per centum of the amount of maximum fine for that offence within such time as may be specified in his written offer.

An offer under subsection (2) may be made at any time after the offence has been committed but before any prosecution for it has been instituted.

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If the amount specified in the offer is not paid within the time specified in the offer or such extended time as the Director

General may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

Where an offence has been compounded under subsection

, no prosecution shall be instituted in respect of the offence against the person to whom the offer to compound was made, and any document or thing seized in connection with the offence may be released by the Director General, subject to such terms as he thinks fit.

All sums of money received by the Director General under this section shall be paid into and form part of the Federal

Consolidated Fund.

Private Employment Agencies 27

First Schedule

[Sections 8, 9a, 11, 13a, 13d, 13e, 13f, 14, 14a, 14b, 28]

Types of Fee

Total Fee

For establishment of private employment agency

Licence Fee

RM500

Processing Fees

Application for licence

Renewal of licence

Application for licence for a branch

Replacement of licence

Application for changing category of licence

Identification document

Replacement of identification document

RM300

RMl00

RM50

RM50

Fee imposed on job seeker or non-citizen employee

Registration Fees

Fee imposed for r e g i s t r a t i o n o f all categories of employment within

Malaysia to a job seeker, the registration to be valid for all categories of employment for a period of twelve months.

RM30 and below

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Types of Fee

Total Fee

Fee imposed for r e g i s t r a t i o n o f all categories of employment outside

Malaysia to a job seeker, the registration to be valid for all categories of employment for a period of six months.

RM50 and below

Placement Fees

Job seeker who is employed within

Malaysia

Job seeker who is employed outside

Malaysia

Non-citizen employee who is employed within Malaysia

Not more than 25% of the basic wages for the first monthly wages

Not more than 25% of the basic wages for the first monthly wages

Not more than one month of the basic wages for the first monthly wages

Private Employment Agencies 29

Second Schedule

[Sections 8, 9, 9a, 11, l3e, l3f, 14c, 14d]

Category of Licence

Paid-up capital

Money

Guarantee

Money

Guarantee to establish a new branch

Licence A—

Job placement for a job seeker within Malaysia

RM50,000

RM5,000

RM5,000

Licence B—

Job placement for a job seeker within and outside

Malaysia, and foreign domestic servant within

Malaysia

RM30,000

Licence C—

Job placement for a job seeker within and outside

Malaysia, and non-citizen employee within Malaysia

RM250,000

RM250,000

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Act 246

LIST OF AMENDMENTS

Amending law

Short title

In force from

P.U. (A) 213/1981

Private Employment

Agencies (Amendment)

Order 1981 24-07-1981

Private Employment

Agencies (Amendment)

Act 2005 05-09-2005

Act Al554

Private Employment

Agencies (Amendment)

Act 2017 01-02-2018

Private Employment Agencies 31

Act 246

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from 2

Act A1554 01-02-2018 3

Act A1554 05-09-2005 01-02-2018 4

Act A1554 05-09-2005 01-02-2018 4a

Act A1554 01-02-2018 5

Act A1554 01-02-2018 6

Act A1554 01-02-2018 7

Act A1554 01-02-2018 8

Act A1554 01-02-2018 9

Act A1554 01-02-2018 9a

Act A1554 01-02-2018 9b

Act A1554 01-02-2018 10

Act A1554 01-02-2018 11

Act A1554 01-02-2018 11a

Act A1554 01-02-2018 13

Act A1554 01-02-2018 13a

Act A1554 01-02-2018 13b

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Section

Amending authority

In force from 13c

Act A1554 01-02-2018 13d

Act A1554 01-02-2018 13e

Act A1554 01-02-2018 13f

Act A1554 01-02-2018 13g

Act A1554 01-02-2018 14

Act A1554 01-02-2018 14a

Act A1554 01-02-2018 14b

Act A1554 01-02-2018 14c

Act A1554 01-02-2018 14d

Act A1554 01-02-2018 14e

Act A1554 01-02-2018 14f

Act A1554 01-02-2018 15

Act A1554 01-02-2018 16

Act A1554 01-02-2018 17

Act A1554 01-02-2018 18

Act A1554 01-02-2018 19

Act A1554 01-02-2018 19a

Act A1554 01-02-2018 20

Act A1554 01-02-2018 21

Act A1554 01-02-2018 22

Act A1554 01-02-2018 24

Act Al554 01-02-2018 25

Act Al554 01-02-2018 26

Act Al554 01-02-2018 27

Act Al554 01-02-2018

Private Employment Agencies 33

Section

Amending authority

In force from 27a

Act Al554 01-02-2018 28

Act Al554 01-02-2018 29

Act Al554 01-02-2018 30

Act A1554 01-02-2018 31

Act A1554 01-02-2018 32