Securing an employment pass in Malaysia is often a complex process. For both employers and expats, understanding the steps and meeting all requirements can be challenging without the right support. Here’s a closer look at why the process can be difficult and how an Employer of Record (EOR) service can help smooth the way.
Why Getting an Employment Pass in Malaysia Is Challenging
Strict Eligibility Criteria
The Malaysian government has specific criteria that must be met for an employment pass to be granted. For instance, each pass category (EP I, EP II, EP III) has different minimum salary requirements and restrictions based on the applicant’s role and qualifications. Moreover, companies that employ foreign workers often need to demonstrate that the role cannot be filled locally, which can be an additional barrier.
Industry-Specific Rules and Regulations
Industries such as finance, engineering, and IT often face additional regulatory hurdles. The process may require special permissions or approvals, making it longer and more complex. Requirements can also vary depending on the nature of the job and the industry’s regulations, which can be challenging to navigate without industry-specific knowledge.
Extensive Documentation Requirements
Employment pass applications demand detailed paperwork, including personal identification, educational credentials, and employment records. For expats, gathering and verifying this documentation can be time-consuming. Incomplete or incorrectly prepared documents can lead to rejections, causing delays or even stopping the application process.
Lengthy Approval Process
The employment pass approval process can take several weeks, and delays are common due to stringent checks and the high volume of applications. For businesses on tight schedules, these waiting periods can disrupt operations and delay projects.
How an EOR Service Can Simplify the Process
An Employer of Record (EOR) service can be a valuable asset for companies and expats navigating the employment pass process. Here’s how an EOR can help:
Navigating Local Compliance
An EOR has in-depth knowledge of Malaysian employment laws and industry regulations. They ensure compliance by guiding the company and the employee through the legal requirements for securing an employment pass, taking into account industry-specific nuances.
Streamlined Documentation Handling
EORs manage the entire documentation process, helping applicants gather, verify, and submit the necessary paperwork accurately and efficiently. By minimizing errors, EORs reduce the risk of application rejection and can speed up the approval process.
Time-Saving Solutions for Employers
By managing the employment pass process, an EOR allows companies to focus on their core business activities. They handle the intricate details, follow up on the status of applications, and keep all parties informed, saving time and resources for the employer
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Support for Expats’ Adaptation
Beyond the employment pass, an EOR often provides expats with additional support, such as orientation to Malaysian culture, help with setting up bank accounts, and guidance on other settling-in tasks. This comprehensive support helps expats adapt quickly to their new environment, making the transition smoother for both employee and employer.
An EOR can simplify the employment pass application by taking over the complex, time-consuming aspects and ensuring compliance with Malaysian laws, ultimately saving time, reducing stress, and increasing the chances of a successful application.
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