Keeping up with Malaysia employment compliance laws is one of the trickiest parts of setting expanding your business. From how to recruit and hire employees to the best ways to onboard them, you’ll need to learn a lot before you officially establish your business. If these laws seem confusing, Malaysia hiring outsourcing is the best option. Globalization Partners is a global PEO with connections all around the globe to help you employ workers in Malaysia and stay compliant.
Recruiting in Malaysia
Before you try to hire employees, consider where you can find the best talent. Today, job portals are an important part of the staffing process in Malaysia. They’re becoming more prevalent, and they offer speed, convenience, a wider pool of candidates, and the chance to showcase your company’s branding.
Some of the most common online job portals include:
- JobStreet
- LinkedIn
- WOBB
- Sling
- adnexio
Another option is working with a recruitment agency that will screen applicants for you. While doing so may save you time, these companies require a fee, and you may not get the exact candidates you’re hoping for.
You can also advertise in your industry’s trade publication if you’re looking for well-trained employees. Individuals who read these publications are typically familiar with the industry and understand everything necessary for the job. Newspaper ads can also provide results, but you’ll need time to set up the ads, schedule interviews, check references, and perform testing on candidates who may not be qualified.
Legal & Background Checks
Malaysia is slow to adopt laws that meet market needs. There are currently no restrictions related to conducting background checks on potential employees by accessing public information, including available data from Facebook and other social media accounts.
Laws Against Discrimination in Malaysia
Recruiting requires following the rules related to job criteria. In Malaysia, employers can specify gender, minimum academic requirements, and even physical abilities as long as they are relevant to the job. If you require qualifications unrelated to the position, you could face fines or penalties for discrimination.
How to Hire Employees in Malaysia
Employees in Malaysia expect businesses to run in a top-down manner. Decisions are slow, and hiring can take patience — especially since meetings often begin with personal conversations for everyone to get to know each other. Punctuality is also important, but many Malays arrive late for meetings, which could also include job interviews.
The best way to hire employees in Malaysia is by starting with an employment contract. Employers must create a written agreement before officially hiring an employee in Malaysia, but the employee will likely request changes to the signed contract. Malays often communicate indirectly, so employers need to read between the lines instead of trying to be blunt.
Malaysia Employment Laws
For employees that will work for more than one month, you’ll need to write a contract that includes a variety of terms such as:
- Work hours
- Overtime
- Benefits
- Termination requirements
- Salary
Part of Malaysia employment compliance consists of a standard workweek with eight-hour days for a total of 40 hours. Standard business hours in the country are 9 a.m. to 5 p.m. Monday through Friday. For every six days an employee works, you must give them one rest day, and you cannot force them to work on that day. Overall work hours per week cannot exceed more than 48, and any extra hours are subject to overtime.
Onboarding in Malaysia
There is no right or wrong way to onboard employees in Malaysia. However, some tips and tricks can make the first couple of days better for employees:
- Review the employment contract in person before the employee’s first day to make sure the employee doesn’t want to change anything
- Fly to Malaysia for the employee’s first day — or even first week — to make them more comfortable
- Onboard several employees at one time to streamline the process
- Designate a specific HR person from your parent company to help new employees, or choose Malaysia hiring outsourcing services
Benefits of Hiring Outsourcing in Malaysia
Outsourcing your Malaysia hiring needs provides multiple benefits. Globalization Partners is a global PEO GP with extensive experience hiring employees in Malaysia. We know how to find top talent for your company, and we can bring them on quickly. Instead of waiting months to set up a subsidiary, we’ll hire employees on your behalf so they can start in a few days.
Work With Globalization Partners To Expand Globally
Globalization Partners is the team you need behind you to succeed in Malaysia. We’ll handle everything including Malaysia employment compliance and employee hiring. Contact us today to learn more.
