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Contract Labour

James_apir
Member
Sat, 12 Jan 2019 04:26:26 PM  (Last updated: Mon, 14 Jan 2019 01:36:43 PM)

Hi, 

Could you advise regarding legality and any implications of supply of contract labor from Company A (Supplier) to Company B (Client)? These contract laborers are local professionals (no foreigners) from admin, finance, engineering and IT. All contract laborers are legal employees of Company A (payroll, contract of employment & all HR matters are managed by Company A) but work at Company B's worksite locations throughout Malaysia and report operationally to Company B. 

Thanks!

James_apir
Member
Sat, 12 Jan 2019 04:35:31 PM
Originally posted by James_apir on Mon, 14 Jan 2019 01:36:43 PM

Hi, 

Could you advise regarding legality and any implications of supply of contract labor from Company A (Supplier) to Company B (Client)? These contract laborers are local professionals (no foreigners) from admin, finance, engineering and IT. All contract laborers are legal employees of Company A (payroll, contract of employment & all HR matters are managed by Company A) but work at Company B's worksite locations throughout Malaysia and report operationally to Company B. 

Thanks!

Addtional info: there are no legal documents / contract between Company A employees and Company B. However, contract will state employee is expected to work at Company B (Client) location and is signed-agreed by employee.

KL Siew
Administrator
Sun, 13 Jan 2019 08:39:23 PM

I don't see anything wrong that practice. All those servicing company B are the employees of company A, the contracting company.

James_apir
Member
Mon, 14 Jan 2019 12:15:09 PM
Originally posted by KL Siew on Sun, 13 Jan 2019 08:39:23 PM

I don't see anything wrong that practice. All those servicing company B are the employees of company A, the contracting company.

Thanks for your response Sifu KL Siew!

Could you advise if this type of supply scope is correctly termed as PEO / Employee Leasing / Secondment from Company A to B in this case?

I cannot seem to find any information on PEO / Employee Leasing legality in Malaysia. Can you share some insight? 

Thanks again! 

KL Siew
Administrator
Mon, 14 Jan 2019 01:36:43 PM

A law firm may be the appropriate place for you to consult.

  This topic is closed