Malaysia has recently implemented new rules affecting foreign workers holding Employment Passes (EP). The Malaysian Immigration Department introduced these changes to streamline the process of adjusting Employment Pass categories.
Here’s a detailed guide to help foreign workers and employers navigate these updates.
Understanding the Employment Pass
The Employment Pass (EP) is a work permit that allows expatriates to be employed in Malaysia. The key features of the EP include:
- Duration: Valid for up to 60 months, subject to the employment contract.
- Dependent Benefits: EP holders can apply for a Dependant Pass for their spouse and children under 18 years of age.
- Employer-Specific: Foreign workers can only work for the company listed on their EP. Switching employers requires a fresh application.
Key Changes to Employment Pass Rules
Effective immediately, employers must adhere to new requirements when applying for a change in Employment Pass categories. These include:
- Cancellation of Current Pass: Employers must cancel the existing Employment Pass when applying to change the category (Category 1, 2, or 3).
- Mandatory Submission of a Change of Category Letter: Beginning January 1, 2025, employers will also need to submit a “change of category letter” at the approval stage of the application.
These steps are designed to ensure clarity and compliance in Employment Pass applications for foreign nationals.
Requirements for the Employment Pass
Before applying for an Employment Pass, foreign workers and their employers should meet specific criteria:
- Employer Eligibility: The hiring company must be eligible to employ expatriates.
- Approval from Authorities: The Expatriate Committee (EC) or relevant authorities must approve the foreign talent’s role.
- Proper Documentation: Employers must provide all necessary documents, including the change of category letter, if applicable.
Key Considerations for Employment Pass Holders
Dependant Pass: Employment Pass holders may apply for a Dependant Pass for their spouses and children under the age of 18.
Job Scope: Foreign workers are strictly bound to the employment terms outlined in their Employment Pass. Changing employers necessitates a new application process.
Company Eligibility: Before applying, foreign workers should ensure that the prospective employer is eligible to sponsor an Expatriate Employment Pass.
The Role of the Expatriate Committee
The Expatriate Committee (EC) or relevant authorities play a crucial role in the Employment Pass application process. They are responsible for evaluating and approving the need for foreign talent in specific positions within Malaysian companies. Only after obtaining approval from the EC can the Immigration Department issue an Expatriate Employment Pass.
Alternatives for Foreign Workers in Malaysia
For foreign nationals seeking to work in Malaysia, the Employment Pass is not the only option. Here are some alternatives:
- Professional Visit Pass (PVP): Ideal for short-term assignments or temporary work. Valid for up to 12 months.
- Temporary Employment Pass (TEP): Suitable for unskilled or semi-skilled positions. Typically issued for jobs in manufacturing, agriculture, or services.
- Resident Pass-Talent (RP-T): Designed for highly skilled professionals. Offers a 10-year renewable visa and allows flexibility to work with any employer.
Malaysia Increases Visa Fees
Starting from September 2024, Malaysia has implemented a fee increase for various visa categories for expatriates and their dependents. This adjustment aims to streamline visa processing and potentially expedite applications for critical sectors.
Key Fee Changes:
- Employment Pass (EP): The fee for an Employment Pass has been significantly increased from MYR 800 to MYR 2,000.
- Dependent Pass (DP): Fees for Dependent Passes have also risen from MYR 450 to MYR 500.
- Long-Term Social Visit Pass (LTSVP): This pass now costs MYR 500, up from MYR 450.
- Professional Visit Pass (PVP): The fee for a Professional Visit Pass has increased from MYR 800 to MYR 1,200.
Faster Processing Times Expected: The Malaysian Immigration Department has stated that these increased fees will contribute to faster processing times for critical sectors within the country.
Conclusion
The new Employment Pass rules in Malaysia highlight the government’s commitment to improving processes for foreign workers and employers. Adhering to these updates is crucial for a smooth transition. For those considering work opportunities in Malaysia, understanding the Employment Pass and its alternatives can help identify the most suitable option for your career goals.
Source: https://travelobiz.com/malaysia-updates-employment-pass-rules-for-foreign-workers/
