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Section 18

New sections 14a, 14b, 14c, 14d, 14e and 14f

of Private Employment Agencies (Amendment) Act 2017

Amendment ActIn forceProvision 18 of 36
Section 18

The principal Act is amended by inserting after section 14

the following sections:

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

(2)

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

(3)

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

Private Employment Agencies (Amendment)

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responsibilities of the private employment agency to the job seeker, non-citizen employee or the employer has been fulfilled.

(2)

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.

(3)

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.

(4)

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—

(a)

the private employment agency has ceased operation;

(b)

the licence of the private employment agency has been revoked; or

(c)

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

(2)

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.

(3)

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.

(4)

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.

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.

(2)

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.

(3)

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

Fund.”.