Can you terminate a local with a foreign replacement in Malaysia?

Under Section 60M of the employment act, any employer who terminates the local employee for the purpose of employing a foreign employee is considered an offense with a penalty of up to RM 50,000.

  This is a potential risk for companies who hire candidates from anywhere to set up a distributed team to breach the local laws in Malaysia, particularly if the company's registered address is in Malaysia. 

  Partnering with an EOR (Employer of record) who knows how to hire remote employees compliantly can mitigate your expansion risk.

Speak to us to learn how to hire remote employees compliantly.