Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

Equality of Treatment (Accident Compensation) Convention, 1925 (No. 19) - Malaysia - Peninsular (Ratification: 1957)

The Committee notes with regret that the Government’s report does not contain a reply to its previous comments. It hopes that a report will be received for examination at its next session and that it will contain full particulars on the following points.

Article 1, paragraph 1, of the Convention. In its previous comments, the Committee drew the Government’s attention to the fact that, since 1 April 1993, the coverage of foreign workers employed in the private sector in terms of compensation for employment accidents had been transferred from the Employees’ Social Security Scheme (governed by the Employees’ Social Security Act, 1969) to the Workmen’s Compensation Scheme (governed by the Workmen’s Compensation Act 1952 and its implementing legislation). A review of these two schemes shows that the benefits provided are of a different nature and that, in general terms, the Employees’ Social Security Scheme offers a higher level of protection. For example, under the Employees’ Social Security Scheme, a permanently injured worker is entitled to a pension (periodical payments corresponding to a certain percentage of the previous wage), whereas under the Workmen’s Compensation Scheme a permanently injured worker is entitled to a lump-sum payment. The same applies to the survivors’ benefits due in the event of the death of the worker as a result of an employment accident. The Committee recalls that Article 1, paragraph 1, provides that each Member which ratifies the Convention undertakes to grant to the nationals of any other Member which has ratified the Convention, or to their dependants, the same treatment in respect of compensation for employment accidents as it grants to its own nationals. In these conditions, the transfer of foreign workers employed in the private sector from the Employees’ Social Security Scheme to the Workmen’s Compensation Scheme is not in conformity with this provision of the Convention. The Committee hopes that the Government will be in a position to provide information in its next report on the measures taken to guarantee to foreign workers the same compensation that is granted to national workers in case of employment injury. In this respect, the Committee recalls that in its report provided in 1998, the Government indicated that it envisaged the possibility of returning foreign workers to the Employees’ Social Security Scheme and had proposed amendments to the legislation to this effect.