Act 446 Penalties and Common Worker Accommodation Offences

Penalties depend on the exact offence

Act 446 does not apply one identical penalty to every compliance failure. Some provisions state their own maximum penalty, while section 33 provides a general penalty where no penalty is expressly provided.

A compliance review should therefore identify:

1. the exact duty that was not met;
2. whether the person is an employer, centralised accommodation provider or another responsible party;
3. whether the breach is continuing;
4. whether an authority direction or order has also been ignored; and
5. whether company officers may be implicated.

Providing accommodation without a certificate

Section 24d states that no accommodation shall be provided to an employee unless it is certified with a Certificate for Accommodation.

The maximum penalties stated are:

• Employer: fine not exceeding RM50,000.
• Centralised accommodation provider: fine not exceeding RM50,000, imprisonment not exceeding one year, or both.

The certificate should match the actual property used. Holding a certificate for a different address, building or arrangement should not be assumed to protect another accommodation location.

Failing to notify occupation within 30 days

An employer must inform the Director General within 30 days from the date accommodation is occupied by its employee.

The maximum fine for failure to give this notice is RM10,000.

This obligation is easy to overlook when workers are housed by an external provider. Employers should connect the move-in process directly to the notification process rather than relying on a later manual reminder.

Using accommodation that is unfit for human habitation

Section 24h states that an employer or centralised accommodation provider shall not use a building as accommodation if it is unfit for human habitation under the relevant written laws.

A person contravening this provision may face a fine of up to RM50,000.

A Certificate for Accommodation does not justify continuing to use a building after serious defects, dangerous alterations or conditions make it unfit.

General penalty and continuing offences

Where an employer contravenes the Act or regulations, or fails to carry out an order by the Director General, and the provision does not state a specific penalty, section 33 provides for:

• a fine not exceeding RM50,000; and
• a further fine not exceeding RM1,000 for each day the offence continues.

A small unresolved issue can therefore become more serious when an authority order is ignored or corrective action is repeatedly delayed.

Company officers may be exposed

Section 29a addresses offences committed by companies, limited liability partnerships, firms, societies and other bodies of persons.

A director, compliance officer, partner, manager, secretary or person responsible for or assisting in management may be charged jointly or separately and may be deemed guilty when the organisation is found guilty, unless the person establishes the defence provided by the Act.

This makes accommodation compliance a management and governance issue, not merely a facility-maintenance issue.

Other recurring offence risks

A full review should also consider failures involving:

• minimum accommodation standards;
• required personal facilities and amenities;
• safety and health responsibilities;
• gender separation;
• fire and electrical safety;
• maintenance;
• appointment of a person in charge;
• inspection and health records;
• directions to submit information or documents; and
• compliance with formal orders.

The absence of a prominently stated penalty beside a duty does not mean the duty is optional.

Inspections and evidence

Authorised officers have inspection and investigation powers under the Act. Organisations should be able to produce accurate records rather than reconstructing them after an inspection begins.

Useful evidence includes:

• valid certificate;
• proof of worker occupation notification;
• occupant list and room allocation;
• property and local-authority documents;
• twice-monthly inspection records;
• person-in-charge appointment;
• maintenance and corrective-action records;
• health complaints and medical referrals; and
• wage deduction records.

Responding to a possible breach

When a problem is identified:

1. protect workers from immediate health or safety risks;
2. stop adding occupants where capacity or certification is uncertain;
3. preserve the existing records;
4. identify the exact property, employer, provider and certificate;
5. record corrective actions and completion dates;
6. obtain advice from the relevant authority or qualified specialist; and
7. confirm closure with evidence.

Do not alter or backdate compliance records.

Common mistakes that increase exposure

• Continuing operations after discovering the certificate is invalid or mismatched.
• Treating a missing occupation notice as an administrative detail.
• Ignoring defects raised in repeated inspections.
• Failing to identify who was responsible for corrective action.
• Allowing uncertified overflow rooms or nearby houses to be used.
• Assuming only the company, and never management, can be held responsible.
• Waiting for an enforcement visit before organising records.

A sensible next step

Create a risk register for every accommodation site. Record each legal duty, evidence available, responsible person, current gap, target date and whether the issue could be a continuing offence.