Staying abreast of employment compliance laws is one of the trickiest aspects of expanding your business to a new country. From deciding the most effective recruitment channels to familiarizing yourself with local hiring practices and designing a solid onboarding program, there’s a lot to learn before you can officially establish your business in Malaysia.
Recruiting in Malaysia
Today, job portals are an important part of the recruiting process in Malaysia. They’re becoming more prevalent as they offer speed, convenience, and a wide pool of candidates. It is important to note that the Malaysian national employment portal, MyFutureJobs, requires job positions to be listed for a minimum of 30 days before they can be offered to expatriates.
Some of the most common online job portals include:
- JobStreet
- WOBB
- SlingApp
- Adnexio
You can also advertise in your industry’s trade publication if you’re looking for specialized talent. Newspaper ads can also provide results, but you’ll need time to draft the ads, schedule interviews, check references, and screen candidates.
There are currently no restrictions related to conducting background checks in Malaysia. However, employers must comply with the relevant data protection laws.
Laws against discrimination in Malaysia
In Malaysia, employers can specify certain requirements in job postings as long as they are relevant to the role. If the specified requirements are unrelated to the position, you could face fines or penalties for discrimination. There are legal prohibitions against discrimination on the grounds of religion, race, or gender.
How to hire employees in Malaysia
For a successful hiring venture in Malaysia, companies should start with a sound employment contract. Keep in mind that this agreement should be written.
When employing individuals for durations exceeding 1 month, companies need to write a contract that includes a variety of terms such as:
- Work hours
- Benefits
- Termination requirements
- Salary
Malaysia employment laws
The legal framework of the Malaysian employment and industrial relations ecosystem is generally provided by the Employment Act 1955 and the Industrial Relations Act 1967.
The Employment Act sets out minimum statutory benefits and entitlements that apply to any individual that enters into a contract of service, with the exception of the sections in relation to overtime payments and termination benefits, which do not apply to employees whose monthly wages exceed RM4,000.
According to Malaysia’s labor laws, the standard workweek consists of 40 hours (8-hour days). Standard business hours in the country are 9 a.m. to 5 p.m., Monday through Friday. For every 6 days an employee works, companies must grant 1 rest day. Overall work hours per week cannot exceed more than 45, and any extra hours are subject to overtime.
Onboarding in Malaysia
There is no one-size-fits all method for onboarding employees. However, there are specific measures that can help set new hires up for success:
- Review the employment contract before the employee’s first day.
- Introduce new hires to key team members.
- Develop a buddy program or designate someone from your HR team to guide employees on their first days on the job.
Grow globally with G-P.
G-P never forgets that behind every hire is a human being. That’s why we’ve backed our fully customizable suite of global employment products with our robust team of HR and legal experts, so we can remain at your side, ready to support you as you build your global teams. With the #1 Global Growth Platform™, you have the recruitment tools and services you need to find your perfect full-time or contract match.
Contact us today to learn more about how we can help you recruit, hire, and onboard anyone, anywhere.
