Job losses have been one of the most significant impacts of the Covid19 pandemic. In an effort to address the increasing unemployment rate amongst Malaysians and to prioritize the hiring of locals, the Human Resources Ministry on 26 October 2020 announced a requirement for employers to advertise job vacancies to Malaysians on the MYFuturejobs portal first, as part of the application process of hiring foreign employees.
When will this take effect?
This was intended to take effect on 1 November 2020, but due to overwhelming feedback from employers and stakeholders, it was pushed to 1 January 2021 through the announcement of the Ministry of Human Resources on 10 November 2020.
Who does it apply to?
All employers in all sectors intending to hire any foreign employees, whether foreign workers or expatriate need to obtain a MyFutureJobs recommendation.
Employers applying to renew an existing expatriate’s Employment Pass will also have to obtain the MYFutureJobs Recommendation approval. An exemption may be given for skilled expatriates with monthly salary of RM10,000 and above.
What are the requirements and the procedure involved?
- Employers must advertise any job vacancies on the MYFutureJobs portal (https://www.myfuturejobs.gov.my/) for a minimum of 30 days before making an application to hire a foreigner.
- The vacancies advertised on the MYFutureJobs portal must contain the following information: job title, salary offered, role and responsibilities and the required qualification, be it academic, skill or experience.
- Within 3 days from the date of advertisement, employers must complete and submit the MYFutureJobs Recommendation For Foreign Worker and Expatriate Application (PAPD Form), which is an online form.
- Interview sessions with potential candidates must be conducted within 30 days from the date of advertisement. These interviews are conducted by the employer and there is no requirement for a representative from the Social Security Organisation to be present during the interviews.
- At end of the 30 days, employers must complete and submit a Hiring Outcome Report setting out all interviews conducted for the job vacancy and their outcomes.
- The respective application will then be presented to the either Expatriates Placement Committee (JPPD) and/or the Local & Foreign Workers Placement Committee (JPPAPT) for approval.
- Employers hiring an unskilled foreign employee will also have to be registered with and apply through the “Sistem Pengurusan Pekerja Asing Bersepada (ePPAX)”.
Are there any exemptions?
Yes. Employers hiring for posts which are difficult to source in Malaysia can apply to be exempted from having to advertise the vacancy and from holding interviews.
Employers can apply for an exemption by completing the PAPD Form and submitting an appeal letter to SOCSO setting out the positions, number of vacancies and salary offered and the justification.
Can a rejection be appealed against?
Yes. Employers can submit an appeal against rejected applications through the ePPAX system or directly to the Committee Secretariat of the Department of Labour, Peninsular Malaysia (JTKSM).
Where can I get more information?
Please visit https://www.myfuturejobs.gov.my/ or contact SOCSO directly for more information.
NB: This article is updated as of the date of publication stated above. As this situation is novel and the government’s response to the outbreak is continuously developing, this article may not necessarily include updates or developments after this date. In situations of doubt, you are advised to check for updates directly with the government authorities.
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This article was written by Donovan Cheah and Yan Nie Th’ng. Donovan has been named as a Recommended Lawyer for Labour and Employment by the Legal 500 Asia Pacific 2017, 2018, 2019 and 2020, and he has also been recognised by Chambers Asia Pacific and Asialaw Profiles for his employment law and industrial relations work.
Donovan & Ho is a law firm in Malaysia. Our practice areas include employment law, dispute resolution, tax advisory and corporate advisory. Have a question? Please contact us.
