Employer Responsibilities Under Act 446

Start by identifying the employer’s role

An employer may provide accommodation directly, rent a property, or place employees in a centralised accommodation managed by a separate provider. The legal and operational responsibilities are not identical in every arrangement, but outsourcing the building does not mean outsourcing every employer duty.

A useful first step is to record:

• who owns or rents the property;
• who applied for the Certificate for Accommodation;
• who manages the accommodation day to day;
• which employees are placed there;
• who handles maintenance, transport, incidents and worker communication; and
• which documents prove that the accommodation and occupation have been properly reported.

Confirm that the accommodation is certified

Section 24d of Act 446 states that accommodation shall not be provided to an employee unless it is certified with a Certificate for Accommodation. An employer or centralised accommodation provider may make the application.

The employer should obtain and verify:

• the certificate number;
• the address and property covered;
• the approved capacity, where stated;
• the certificate validity period;
• the name of the certificate holder; and
• whether the actual rooms and worker population match the certified arrangement.

A certificate should not be treated as a substitute for checking building use, planning, fire safety, renovation or other local requirements.

Notify the Director General within 30 days

Section 24e requires an employer to inform the Director General within 30 days from the date the accommodation is occupied by its employee.

This duty applies whether the worker is placed in accommodation provided by the employer or in a centralised accommodation. A sensible internal process should capture:

1. the worker’s move-in date;
2. the property and certificate details;
3. the submission date;
4. the acknowledgement or proof of submission; and
5. any later movement to another property.

The Act provides for a fine of up to RM10,000 for failure to give the required notice.

Ensure minimum standards are maintained

Section 24f places a duty on employers and centralised accommodation providers to ensure that accommodation complies with the minimum standards under the Act and regulations.

For practical monitoring, employers should not limit their review to the initial inspection. They should periodically check:

• sleeping-space and occupancy limits;
• beds, mattresses, pillows, blankets and lockable cupboards;
• toilets and bathrooms;
• water and electricity;
• cooking, dining and common facilities;
• cleanliness and waste arrangements;
• separation of male and female employees;
• fire and electrical safety;
• maintenance issues; and
• health complaints or infectious-disease controls.

Appoint a person in charge

An employer or centralised accommodation provider must appoint at least one person in charge of accommodation. That person is responsible for accommodation management, employee safety and well-being, and the amenities provided.

The employer should document the appointment and make sure the appointed person has:

• access to the property;
• authority to report and escalate defects;
• an inspection checklist;
• a record-retention method;
• emergency and clinic contacts; and
• a clear reporting line to management.

The person in charge must inspect the accommodation at least twice a month and keep records.

Manage safety, health and maintenance

Act 446 identifies several responsibilities for employers and centralised accommodation providers, including:

• separate accommodation for employees of opposite genders;
• preventive measures for worker safety and well-being;
• fire-safety measures under the relevant laws;
• compliant electrical wiring systems;
• necessary medical assistance;
• measures to contain infectious diseases; and
• maintenance as directed by the Director General.

These duties should be translated into an operating plan rather than left as broad statements. Each responsibility should have an owner, frequency, record and escalation process.

Review deductions before charging workers

An employer may make wage deductions for accommodation only subject to the applicable conditions. The current maximum, effective from 1 March 2026, is RM150 per worker per month, but the accommodation must have a valid Certificate for Accommodation and the employment contract must support the deduction.

Where a contract states that accommodation is free, or states a lower amount, the employer should not automatically increase the deduction without the required written agreement.

Build an employer compliance file

A practical employer file should contain:

• Certificate for Accommodation;
• property approval and tenancy documents;
• worker occupation notifications;
• list of current occupants;
• appointment letter for the person in charge;
• twice-monthly inspection records;
• maintenance and incident records;
• health complaint records;
• rental-deduction records and worker consent where required; and
• correspondence with the accommodation provider and authorities.

This file makes it easier to respond to inspections, worker questions, management reviews and certificate renewals.

Common employer mistakes

• Assuming the operator is responsible for everything.
• Placing workers before checking the certificate.
• Failing to notify occupation within 30 days.
• Allowing actual occupancy to exceed the planned arrangement.
• Keeping no evidence of twice-monthly inspections.
• Charging rent without checking the certificate and employment terms.
• Treating local-authority approval and the accommodation certificate as the same approval.

A sensible next step

Map every worker accommodation location against its certificate, occupancy, notice date, person in charge and latest inspection record. Any blank field should become an immediate follow-up item.