Question

You and five other Emiratis were posted for international posting to Kuala Lumput, Malaysia, by your company, Mubadala, an investment company based in Abu Dhabi UAE to open a new office. To benefits you and your fellow Emirati in Kuala Lumpur’s new office you imposed and followed the home country employment law provision of no income tax deduction no employee provident fund contribution, and no requirement to register with the social security and contribute to the Employement Injury Scheme. Your decisions however have are not aligned with the Malaysian employment Law and Industrial Relationsh provisions

Question: Based on the above evaluate three implication of imposing and following the home country employment Law n the host country context

Answer 1

Answer:

Imposing and following the home country employment law such as the provision of no income tax deduction, no employee provident fund contribution, and no requirement to register with the social security and contribute to the Employment Injury Scheme will lead to the unsecured employment policies for the employees of the company and the Malaysian government cannot be held liable for providing the benefits to such employees if they are in need of any financial assistance from the government associated with the regulations imposed on the employees by the company of their home country and if any of the employee complaints to the Malaysian government for their rights then the Malaysian government may take the legal action on the firm.

Following are the three implications of imposing and following the home country employment Law in the host country:

1. Imposing the law of no income tax deduction will exclude the business from the benefit of getting the sources of funds from the financial institutions in their needs as they have not paid any income tax to the government.

2. Imposing the law of no employee provident fund contribution will exclude the employee from getting the benefit of pensions when he/she retires from the job i.e. the after retirement, life of the employee will be unsecured as far as financial needs are concerned.

3. Imposing the law of no requirement to register with the social security and contribute to the Employment Injury Scheme exclude the employees from getting the benefits which he/she will get either after the retirement or in case of accidents and death. These benefits include the compensation after the retirement, compensation in case of any untoward incidence such as disability of the employee and the compensation paid to the dependent and the survivor after the death of the employee.