Saturday, May 12, 2012

Insure all foreign workers

Foreign workers make up a big part of Malaysia's labour workforce in a number of industrial sectors including construction, manufacturing, food and beverage and others. The Malaysian government has made it compulsory for foreign workers to have insurance coverage.

Beginning May 14, the Labour Department will begin to trace and penalise employers who have not provided insurance coverage for their foreign workers. Employers who fail to provide insurance coverage can be charged under Section 26 (6) of the Act, which carries a maximum two years’ jail, a fine of up to RM20,000 or both.

Government records show only 1.2 million workers out of 1.8 millions workers in the country are covered by insurance leaving more than 600,000 yet to be provided with insurance coverage.

The Labour Department takes the failure to insure foreign workers very seriously. Currently, 28 insurance providers were approved by the department.

Source: The Star..Insure all foreign workers

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