Act 446: Time not right to increase fines for employers, says Saravanan


KUALA LUMPUR: It is not a suitable time to increase the fine against employers who fail to comply with the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446), says Datuk Seri M. Saravanan (pic).

The Human Resources Minister told Parliament that this was because of the current state of the economy and the labour shortages following the implementation of the movement control order since last year.

He added that the numbers of foreigners who contributed to the Social Security Organisation (Socso) has also dropped from 1.8 million to 1.1 million within a year, showing that the country is facing a labour shortage crisis.

"But at the moment, we are already imposing a fine of RM50,000 for each worker to employers who do not comply with the act,” said Saravanan.

"In such circumstances, I think it is not a suitable time to increase the fine," he added when replying to a supplementary question from Datuk Che Abdullah Mat Nawi (PN-PAS) during Ministers' Question Time.

Che Abdullah had asked whether the ministry would consider imposing higher fines as many employers have yet to comply with the act.

Under the act, the SOPs include conducting cleanliness and disinfection exercises in common areas, providing facilities for washing and disinfecting hands, avoiding group activities and ensuring social distancing of at least 1m between workers.

Previously, Act 446 only covered the mining sector and plantations bigger than 8.09ha. Now, it has been extended to cover the housing and accommodation for workers in all sectors across Peninsular Malaysia and Labuan.

Meanwhile, Saravanan said 940 investigation papers were opened against employers in various sectors between June 2020 and August 2021.

“A total of 618 compound notices were also issued for various offences, such as failing to meet the minimum standard of accommodation including beds, matresses and pillows for workers,” he added.

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