Employment pass fee burden: employee or employer?

Last activity 13 October 2018 by Ejio

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EjioMember12 October 2018 18:36:27

Hello all, I would really appreciate a kind piece of advice on Malaysian Employment Pass fee matters.

I'm currently working in a company in Malaysia and will undergo job transition to a new company in Malaysia real soon. The situation here is my current company has applied an EP with 1 year validity for me (at company's expenses). However i decided to leave the company 5 months before the EP expiration date. Now the company is asking me to pay for the balance (5 months) of my EP fee. There is no such requirement written in any of documents, agreement, offer letter, etc that I signed earlier.

My question is:
1. Is this requirement reasonable and legal in Malaysia?
2. Is there any way that I can choose not to pay for the balance fee?

Thanks in advance!

GravitasViP12 October 2018 18:44:59

9040

Im guessing they are asking you to pay 5 x rm90 to be able to leave on amicable terms. That is definitely worth it.

If you dont pay they can block you from joining another company and getting a fresh EP.

EjioMember13 October 2018 01:57:32

Hi Gravitas,

Based on my calculation, it's more than RM450 that i will need to pay 😅 But yeah, does that mean it's legal and the company has the right to ask me pay the amount although there was no prior black and white agreement on this matters?

GravitasViP13 October 2018 03:59:31

9040

Usually there is something written (or implied) in the Offer of Employment about arrangements when cutting short a contract. Contract law in Malaysia is quite complex and there are often penalties of some kind when breaking a contract. If there is an Office Handbook in the company, check also if that contains any T&Cs

EjioMember13 October 2018 12:52:47

Thanks for your advice, Gravitas! Will definitely check if there's any black and white statement on that before proceed to pay

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