IMPACT – MEDIUM
What is the change? Starting Aug. 1, authorities will start implementing new policies and reinforcing existing regulations for work passes, including all categories of employment passes and professional visit passes.
What does the change mean? Notably, employers will no longer be able to include allowances when calculating the minimum salary for work permit eligibility. In the past, this was allowed on a discretionary basis. The rules also add stricter requirements for certain nationalities applying under the new employment permit category III.
Background: The new rules affect foreign workers applying for regular employment passes (category I), employment passes for a contract term of less than two years and meeting the minimum salary (category II), and employment passes for foreign nationals hired for a limited duration and earning less than the normal wage (category III, created last year).
The summary of new regulations is as follows:
Categories I & II
Professional Visit Pass
BAL Analysis: Although some of the policies have been in place for some time, the authorities are emphasizing strict reinforcement of all rules moving forward.
This alert has been provided by the BAL Global Practice group and our network provider located in Malaysia. For additional information, please contact your BAL attorney.
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