Labour Department clarifies ...

The Labour Department in responding to a news story "Local entrepreneurs lament over new labour ruling" in the Bulletin dated Jan 7 2004, yesterday, clarified that it is not true that the Department of Labour is imposing a new ruling of one-year Labour Licence validity. The Acting Commissioner of Labour, Haji Omar bin Hj Abd Rahman, said: "However, I must point out that many companies when applying for renewal of licences fail to submit genuine list of projects being undertaken. Even if they do, the projects are more of short-term in nature, which can be completed in a matter more of weeks.

"So when inspection is done, all the works have been completed, and more often than not, these companies do not know when the next jobs are coming. The Department of Labour is in the position to assess the credibility of the companies as they have workers to take care of. This is indeed an important consideration as we have many cases where the employers fail to pay their workers as stipulated in the Labour Act simply because they have no projects to do. How can they pay if they have no real projects? So what happen to the workers?

"The employers misuse their workers' employment passes by doing 'free lance' activity, which is very hard to detect. In the construction sector these companies will be monitored closely and their Labour Licences are renewed for one year only. I do not think there is a problem to renew for two-year period if these companies have genuine projects, and I also think it is important to be honest when submitting the list of projects.

"As for the allegation of quota reduction, I am sure there is a simple explanation to it. I can only speculate that the reduction was due probably to the incomplete information given by the employer when submitting the renewal form.

"Unless there was a genuine mistake on our part, these workers were not listed on the form thus leaving some of the quota as if unfilled. Again depending on the status of the companies and our stand on 'free lance', it might be appropriate to reduce the number. On the other hand if we were to be given the opportunity to talk to 'local contractor' I would be able to advise him to submit a letter of appeal. I am sure his case could be considered favourably if proven to be genuine.

"On this opportunity, may I also remind employers to renew their Labour Licences 3 months before the expiry dates. We often encounter employers submitting their renewal forms well after the expiry dates. Such habit can certainly cause delay in processing them, as inspections need to be carried out before approval of the quota. Therefore, the Department of Labour requires the cooperation of all respective employers to comply with our requirements as this can expedite approval of application," he added.

Courtesy of Borneo Bulletin