Firms OK with worker housing policy, but worry about costs
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PUTRAJAYA’S intention of providing better welfare and protection for workers will see resistance from some companies due to the costs involved, said employers.
They told The Malaysian Insight that they would rather offer allowances to employees instead of accommodation as per the Workers’ Minimum Standard of Housing and Amenities (Amendment) Bill 2019.
The amendment stipulates that employers in all sectors provide accommodation to workers. However, it is not compulsory.
At present, only the mining and plantation industries provide worker accommodation, but the government hopes that the new policy will attract more high-tech investments to Malaysia.
Malaysia SME Association president Michael Kang, while praising the new provisions, said the added costs may cause employers to opt to give allowances to employees from out of state instead.
“Employees who receive allowances will have to solve their own accommodation issue. Generally, some factories provide accommodation to workers, or give allowances. After the law is passed, employers can start deducting rent from employees’ pay, but how much are they allowed to deduct?
Another issue that employers foresee cropping up is the state of accommodation provided to foreign labourers, which is usually provided by contractors.
Master Builders’ Association Malaysia president Foo Chek Lee said Putrajaya’s new guidelines serve to provide workers with basic accommodation.
Since the proposed law allows employers to deduct rent from workers’ wages, contractors can charge a nominal fee of RM50 per person.
Human Resources Minister M. Kula Segaran said the government is pushing reforms to safeguard workers.
He told The Malaysian Insight that the Industrial Relations Act is outdated by half a century, and the government recognises the role that welfare plays in improving productivity.
“We are not making it compulsory for employers to provide accommodation, but the government is willing to assist those who provide accommodation with the guidelines.”
He said Putraya will meet employers and workers’ unions to discuss the policy.
“We want the accommodation provided to meet the basic requirements. After the bill is passed in Parliament, we will meet employers and unions.
“The labour advisory council meets once a month, and the matter will be discussed at its meetings.”
Under the act’s new Section 24G, employers can deduct accommodation expenses from workers’ salaries. The accommodation provided must be “suitable for human habitation”, and those found to be in violation of the law could face a RM50,000 fine.
Section 24J details the requirements of such accommodation. Section 24J(a) states that quarters for men and women must be separate, 24J(b) (employers are required to ensure workers’ safety and harmony), 24J(c) (fire-safety requirements), 24J(d) (electrical wiring safety), 24J(e) (appropriate medical assistance for employees) and 24J(f) (appropriate disease prevention).
Under Section 24L(1), employers must appoint a person to be in charge of worker accommodation, including providing adequate facilities, and ensuring their health and safety. Section 24L(2) states that the person responsible must ensure compliance with regulations and inspect the accommodation at least twice a month, as well as provide appropriate treatment to sick employees.
Section 24M states that any employee who resigns must move out of the accommodation effective the resignation date, while workers whose contracts have expired are given up to four weeks to move out.
Under Section 28A(1), any employer found to be flouting the regulations can be fined, failing which, formal charges will be made. – July 29, 2019.