My business is accused of employing or harbouring undocumented workers in Malaysia. What should I do?

Construction sites, restaurants, factories, farms and households with domestic helpers can all be subject to Immigration Department operations. When workers are found without valid passes, the business owner, manager, or even the owner of the premises may be investigated.

What offences may apply?

The Immigration Act 1959/63 includes, among others:

• section 55B: employing a non-citizen who does not have a valid pass;
• section 56(1)(d): harbouring a person who has acted in contravention of the Act, or whom the person has reasonable grounds to believe has done so;
• provisions dealing with occupiers or owners of premises where such persons are found.

The exact charge depends on the facts. We do not set out penalties here; they can be serious and may include liability for directors and managers in some cases.

Are there defences?

The Act provides certain defences for some of these offences. In summary, these may apply where:

• the offence was committed without your knowledge or connivance; or
• you took all reasonable precautions and exercised due diligence to prevent it.

Whether a defence is available depends on the provision charged. Evidence of real, documented checks is central.

Have a question about your own situation? Ask on WhatsApp

What should I do during an Immigration operation?

1. Stay calm and cooperate. Do not obstruct officers.
2. Do not hide workers, documents or devices. That can lead to further offences.
3. Ask for the officers' details and a list of items or documents taken.
4. Contact a lawyer before giving a detailed statement about your hiring practices.
5. Tell the truth. Do not invent employment records or backdate documents.

What documents help show due diligence?

• copies of workers' passports and valid passes, with dates checked;
• records of permit applications, renewals and levy payments;
• contracts with recruitment agencies and subcontractors, and their warranties about workers' status;
• internal procedures for checking documents and monitoring expiry dates;
• site access logs showing who controls labour at the site.

Prepare these honestly from your actual records. Never create documents after the event to look compliant.

What if a subcontractor brought the workers?

This is common in construction. Liability may depend on who actually employed and controlled the workers, and what checks you made. Contracts and site records matter.

Common mistakes

• Telling workers to run or hide.
• Backdating documents.
• Assuming an agent's verbal assurance is enough.
• Ignoring expiry dates on passes.

When to speak to a lawyer

Immediately after an Immigration operation at your business or premises, or if you are called to give a statement. You can contact us; every case depends on its facts.

Frequently asked questions

I rented my premises to a tenant who employed illegal workers. Am I liable?

Possibly, depending on the provision and what you knew. Keep your tenancy documents and records of inspections.

Can directors be personally charged?

In some cases, yes. The Act and general criminal law can impose liability on persons responsible for a company's conduct.

Can I pay a compound instead?

Some offences may be dealt with by compound at the authorities' discretion. Ask your lawyer.

The worker's pass expired last week. Is that an offence?

It may be. Monitoring expiry dates is part of due diligence.

What happens to the workers?

They are dealt with under immigration law. Your responsibilities may include unpaid wages; get advice.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Immigration Act 1959/63 (Act 155), AGC Laws of Malaysia
2. Immigration Department of Malaysia: Enforcement
3. Employment Act 1955 (Act 265), including sections 19 and 69, AGC Laws of Malaysia

Fact-checked on 17 Oct 2026