MDEC to step up enforcement for EP holders who switch jobs
29 Aug 16
IMPACT – MEDIUM
What is the change? The Malaysian Digital Economy Corp. (MDEC) has announced that it will increase its enforcement of requirements on employment pass holders who switch employers in Malaysia.
What does the change mean? EP Category I and II holders will be required to provide a release letter from their previous employer and will have their current employment pass canceled when switching employers in country.
- Implementation time frame:Immediate and ongoing
- Visas/permits affected: Employment passes (Categories I and II)
- Who is affected: EP Category I and II holders who switch employers in Malaysia.
- Impact on processing times:The change may result in a longer process for EP Category I and II holders who switch jobs in country because they will be required to obtain a release letter from their previous employer and have their current employment pass canceled.
- Business impact: Businesses that hire EP Category I and II holders who were previously employed by another employer in Malaysia should anticipate the possibility of a longer transition period.
Background: The change arose out of ongoing discussions between Malaysia’s immigration authorities and MDEC. Additional changes are expected.
BAL Analysis: Employers should take note of the change and make sure their internal processes have been updated accordingly. Discussions between the immigration authorities and MDEC are ongoing. BAL continues to monitor developments and will provide updates if additional changes are announced.
This alert has been provided by the BAL Global Practice group and our network provider located in Malaysia. For additional information, please contact your BAL attorney.
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Source: Berry Appleman & Leiden LLP