Malaysia and Indonesia signed an MOU on the Recruitment and Placement of Indonesian Domestic Workers on 15 May 2006, amended by a Protocol on 30 May 2011, which provides protections for domestic workers.

The MOU affirmed the right of domestic workers to hold their passports and to communicate with their families. It also provided that payment of monthly wages must be made into a bank account, and for one rest day per week (with the option to compensate with overtime payment). Recruitment fees, to be paid upfront by the employer, are capped at US$1,500 (4,511 Malaysian ringgit [MYR]). Under the MOU, the employer can deduct a maximum of US$600 (MYR1,800) for these fees from the workers’ salary, although salary deductions may not exceed 50 per cent of the worker’s monthly salary. The MOU also includes a standard employment contract (to be endorsed by the respective diplomatic missions); stipulates the costs to be borne by the employer and by the worker; and outlines the responsibilities of the employer, worker and recruitment agencies in Indonesia and Malaysia. The MOU requires Indonesian agents to pay for the deployment cost if the domestic worker recruited is not qualified and/or refuses to work without reason.