In Malaysia, if you want to start a private employment agency, you need to apply for a license under the Private Employment Agencies Act 1981 (Act 246) from the Labour Department (Jabatan Tenaga Kerja).
The terms and conditions are as follows:
- A corporate body/company which is incorporated under the Companies Act 2016 (Act 777) must:
- Have the majority shareholder(s) i.e., at least 51% of the total shares of the company, held by Malaysian citizens
- Have the company name preceded by the word “Agensi Pekerjaan”
- The company director named in the application form who is responsible for the agency must:
- Be a Malaysian citizen
- Not be a bankrupt
- Not have been convicted of any offence under any written law related to anti-trafficking in persons and/or forced labour
- You must have a suitable premise/office for conducting recruitment activity as determined by the Director-General
- There are 3 different licenses you can obtain, and each license corresponds to a different minimum paid-up capital as follows:
- License A: RM50,000 – For job placements for local job seekers within Malaysia
- License B: RM100,000 – For job placements for local job seekers within Malaysia and overseas, and foreign domestic workers within Malaysia
- License C: RM250,000 – For job placements for local job seekers within Malaysia and overseas, and non-citizen workers including foreign domestic workers within Malaysia
- Upon the grant of a license, the agency is required to deposit a money guarantee to the Director-General in accordance of the license category:
- License A: RM5,000
- License B: RM100,000
- Licence C: RM250,000
Honestly, obtaining license is not that difficult; however, maintaining the license is a different story.
For more information you can visit the Department of Labour Peninsular Malaysia website here about Private Employment Agencies: https://jtksm.mohr.gov.my/en/services/private-employment-agencies/acts-guidelines
#AgensiPekerjaan #Recruitment #AuntyHR
Learn More About Employment Agencies with Me @Sim Ling KU
