Qoute.com, January 22, 2009
(RTTNews) - Malaysia's government on Thursday banned the recruitment of foreign workers in the country's manufacturing and service sectors in an effort to protect its citizens from unemployment during the ongoing global economic slow down.
Announcing the decision, Home Minister Syed Hamid Albar said that the decision was taken after a human resources ministry report warned that as many as 45,000 people would be laid off by the end of the month.
As per the new rule, the companies must fire their foreign staff first if they are forced to reduce their employees because of the ongoing economic slow down. However, those foreign employees working in highly skilled service industries and factories are exempted from the ban.
Malaysia is currently the leading importer of foreign labor in the region, and has over a two million foreign workers, mostly from Indonesia and other South East Asian countries, in the country. The new law permits them to remain in the country until their contract expires or until they are laid off.
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