BETTER DEAL FOR MIGRANT DOMESTIC WORKERS?

New deal for maids
27 May 2006 (New Straits Times)
Annie Freeda Cruez

The employment of foreign maids will come under an 'open market' system soon. Wages will be negotiable among the employer, maid and employment agency.

Employers will have to negotiate monthly wages with maids soon under an "open market" system that will do away with minimum wages.

There will be no ceiling either on wages for maids from countries like Indonesia, the Philippines and Sri Lanka, which top the list of nations supplying maids to Malaysia.

The current trend of some Indonesian maids asking for between RM400 and RM500 indicates that the RM350-RM400 wage bracket in force for several years may no longer be applicable.

Malaysians may also have to look to employment agencies for an indication of how much they will have to pay in due course.

They will also have to dig deeper into their pockets for the services of maids with the introduction of mandatory insurance coverage costing RM72 per month.

These are among benefits accruing to maids under a memorandum of understanding for maids between the Home Affairs and Human Resources Ministries signed two weeks ago.

The MoU, inked after talks with Indonesia, which dropped its earlier call for a minimum wage, includes new requirements for employers, maids and employment agencies.

• Employers: They will have to open a bank account under the maid’s name and deposit her salary in it every month. They will also have to sign a legal contract with maids on terms and conditions of employment.

• Maids: They can take grievances against employers to the Labour Court and, if necessary, to the Sessions Court.

• Employment agencies: They will no longer be able to deduct maid’s salaries.

There is some good news for employers: The MoU does not mention leave or overtime for maids.

The Home Affairs Ministry will announce the date of implementation soon.

Human Resources Minister Datuk Seri Dr Fong Chan Onn told the New Straits Times that the MoU came in the wake of misgivings among some of the manner in which maids in Malaysia were being treated.

He said the agreement had addressed some of the issues raised, including non-payment of wages and unduly harsh working conditions.

The Indonesian Government had highlighted these issues after several cases of ill-treatment of maids were taken to court.

Fong said the British Broadcasting Corporation had also highlighted negative aspects of the working environment of maids in Malaysia.

He said the MoU was aimed at indicating the sincerity of the Malaysian Government in addressing the "many perceived negative perceptions".

Asked about recourse to the Labour court by maids with grievances, he said they could raise issues like non-payment of wages and breach of contract. On the negotiable wage, he said an "open market" system would operate, irrespective of the country the maids came from.

Fong said employers who faced difficulty depositing money in their maid’s accounts could seek exemption from the Director-General of Labour.

Regarding employment agencies and individuals bringing maids directly into the country, he said they had to register with the ministry.

There are 1,200 registered maid agencies in the country, of which only 240 are authorised to bring in foreign maids.

The agencies and individuals must also submit details of maids to the ministry.

The maid’s salary and the name of the bank where the money will be deposited every month should also be disclosed.

On the insurance policy, Fong said it would come under the Foreign Workers’ Compensation Scheme which was under the Workmen’s Compensation Act.

Employers can buy policies for their maids from any of the 24 companies approved by the ministry.

There are 350,000 foreign maids in Malaysia of whom 90 per cent are Indonesians. The others are Filipinos, Sri Lankans and Myanmar nationals.