7. Recommendations
7.1 Recommendations to Employers
• Review the enforceability and proportionality of resignation penalty clauses, and apply them transparently
and consistently. Where a resignation penalty clause is structured as reimbursement of actual costs rather
than a fixed fine, provide workers with an itemized breakdown and supporting receipts as a matter of
course, and exclude recruitment agency fees from such claims in line with the internationally recognized
Employer Pays Principle.
• Respond to formal written complaints of harassment or grievance with a substantive, documented reply
within a reasonable timeframe, regardless of whether an unrelated dispute with the same worker has
already been resolved.
• Establish an independent, confidential channel for reviewing medical certificates that does not require
disclosing the employee’s identity to their direct supervisor.
• Audit the consistency and transparency of wage calculations and KPI/attendance systems, and
communicate proactively rather than only when corrections are flagged.
• For roles performed under company-set schedules, supervision, and KPIs, review whether “independent
contractor” agreements reflect the substance of an employment relationship, regardless of the label used
in the contract.
• Do not permit a manager who is the subject of an active HR investigation to unilaterally issue disciplinary
action on the same matter under review.
• Do not tie an individual worker’s contractual rights or entitlements to the outcome of negotiations with other
workers.
• Disclose all material shift conditions, tool requirements, and training arrangements at the recruitment
stage, before the contract is signed.
7.2 Recommendations to Regulators and OECD NCPs
• Treat the patterns in this report as indicative of structural, sector-wide practices rather than isolated
complaints, given that they recur across multiple independent employers.
• Consider coordinated review where the same parent company appears across multiple NCP jurisdictions.
• Ensure that the 2023 amendments to Malaysian labor law, which provide for compensation where an
employer-caused delay pushes back a worker’s contractual start date, are implemented for foreign
workers as well, including at the visa-processing stage.
• Within LHDN, ensure that corrections to residency status arising from documented counter-level
misguidance are resolved within the agency’s own published service standards, and that a written
acknowledgment of administrative error by a responsible officer triggers prompt internal escalation rather
than leaving the correction in the ordinary queue. Case 7 of this report demonstrates the current gap in
concrete terms: a correction that remained in the ordinary queue for more than five months despite a
written acknowledgment of error was completed within days once a representative negotiated in person —
an outcome that should not depend on physical presence or professional representation.
7.3 Recommendations to Human Rights and Labor Organizations
• Treat skilled workers and professional-visa holders (Employment Pass holders) as a distinct,
under-monitored category whose vulnerability in the corporate sector differs from — but is no less serious
than — that of traditional low-wage migrant labor.
• Support the development of shared, anonymized case-referral protocols between independent
practitioners such as Sukimare Consulting and established NGOs such as Tenaganita.
Sukimare Consulting — White Paper (July 2026)
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