HR Ministry takes recruitment firm to court over RM1mil back pay for 733 foreign workers

PETALING JAYA: A recruitment company is facing Industrial Court proceedings for failing to pay salary arrears to 733 Bangladeshi workers as directed in claim proceedings through the Human Resources Ministry.

The proceedings were held on Feb 5 and the company was given 45 days to settle the outstanding amount of RM1,035,557.50 but had not done so to date, according to a ministry statement on Friday (May 17).

The ministry said the case was being referred to the court under Section S69(4) of the Employment Act 1955.

If convicted, the employer could be fined RM50,000 for every offence in addition to paying the arrears.

The claim proceedings found that although the workers were brought into the country legally, they did not get any jobs.

"A total of 10 investigation papers (IP) have been opened on the company involved.

"Permission for prosecution was obtained for four IPs, with the others (awaiting) further instruction," the statement read.

It added that the company's recruitment licence had been cancelled and it was no longer allowed to take in any new applications.

Of the 733 affected workers, 692 had since found jobs under the Special Employers Exchange Process, the statement read.

"The ministry will not compromise with any parties who flout labour laws and will ensure that the welfare of workers is always guaranteed," it added.

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