Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

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

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Article 1 of the Convention. Extending the effective coverage of the Employees Social Security Scheme to foreign workers and transition measures. (i) Completing the transition towards full implementation. The Committee notes with interest the information provided by the Government as regards the measures taken to increase the registration of foreign workers with the Social Security Organization (SOCSO), aiming to achieve effective coverage under the Employees’ Social Security Scheme (ESSS), which include: (i) engagement sessions with foreign workers and employers to boost awareness on the scheme; (ii) engagement sessions via official social media platforms; (iii) induction sessions conducted by the National Institute of Occupational Safety and Health (NIOSH); (iv) organization of events with media coverage to increase registration; and (v) granting of amnesty periods for employers. The Committee takes due note that the registration of foreign workers with the SOCSO platform is a requirement for the approval and renewal of work permits, and that the lack of registration of foreign workers by employers may be penalized with fines, criminal prosecution, and imprisonment. Lastly, the Committee takes note that 1,568,143 foreign workers were registered in June 2023. In view of the above, the Committee requests the Government: (i) to provide further statistical data on the evolution of the registration of foreign workers since January 2019, indicating in particular the number of registrations per year; (ii) to indicate how many workers previously covered by the Workers’ Compensation Scheme (WCS) have been properly transferred to the Employees’ Social Security Scheme (ESSS); (iii) to indicate the number of employers penalized for lack of registration of foreign workers with the ESSS and the nature of the penalties applied; and (iv) indicate the number of employers who have benefited from an amnesty and the periods granted.

(ii) Addressing challenges to effective implementation. The Committee takes note of the information provided by the Government concerning the efforts made to identify the dependents of foreign workers in co-operation with the Embassies and High Commissions in Malaysia, social security agencies in the foreign workers’ countries of origin, in particular Indonesia, Nepal, Myanmar, and Pakistan, and with other relevant parties. The Committee also notes that, to overcome obstacles related to language barriers, the Government has continued to produce the official Employment Injury Scheme for Foreign Workers brochures in several languages (Bahasa Malaysia, English, Bengali, Nepali, Burmese, Tamil and Thai), and that translations into other languages are underway.

(iii) Removal of discriminatory practices in relation to workplace injury. The Committee notes that the Government indicates that only foreign workers who have a valid immigration permit and a formal employment contract are covered by the Employees’ Social Security Scheme (ESSS), and that a new section 69F of the Employment Act, 1955, has been introduced to address discrimination at the workplace, including the possibility of the application of fines. In this context, the Committee requests the Government to provide information regarding labour inspection reports related to discriminatory practices against foreign workers involving work-related injuries and, if any, sanctions applied in this respect.

(iv) Access of foreign workers to medical care in case of work-related injury. The Committee takes due note that foreign workers who are victims of work-related accidents are afforded appropriate medical care at SOCSO’s panel clinics or public clinics/hospitals and rehabilitation treatments, which continues to be provided until foreign workers return to their home countries. In this context, the Committee requests the Government to confirm whether the medical care provided under these conditions is also afforded to foreign workers who have suffered work-related accidents but have not yet been registered with the SOCSO.

(v) Ensuring the sustainability of work-related injury benefits under the ESSS, considering the extension to foreign workers. The Committee notes, that according to the report on the eleventh actuarial valuation of the Employees’ Social Security Scheme (ESSS), conducted in 2019 with the technical assistance of the ILO, the overall financial situation of the scheme was considered sound. The Committee also takes note that, according to this report, the gap between the current 1.25 per cent rate of contribution and the necessary cost rate has fluctuated in recent years, and that the inclusion of foreign workers may add a pressure on the overall cost. The Committee takes note that the report recommends the situation to be monitored closely and the impact of this group over the financial situation reassessed soon in a next actuarial valuation. In view of this, the Committee requests the Government to provide up to date information on the reassessment of the financial situation of the Employees’ Social Security Scheme (ESSS), considering the incorporation of foreign workers.

Article 2. Special arrangements with contributing countries to ensure the payment of compensation abroad. The Committee once again requests the Government to indicate whether documents relating to the hiring of foreign workers, such as model contracts of engagement, and standing operations procedures contain information on the rights, entitlements and conditions relating to employment injury protection, in the main languages of foreign workers. In addition, the Committee requests the Government to confirm that bilateral agreements in this regard have only been concluded with Indonesia, Pakistan, Nepal and Myanmar.

Article 4. Mutual assistance in the application of the Convention. The Committee takes note of the information concerning the continuation of the initiatives to ensure that employers comply and foreign workers are registered under the scheme to access the employment-injury related benefits, also in the context of the Decent Work Country Programme (DWCP) with the ILO.