MEF president Syed Hussain Syed Husman said Malaysian workers are first priority to fill the vacancies and there should be no compromise on the matter.

“MEF supports the stand taken by the human resources ministry that for such cases the approved quota to bring foreign workers will be cancelled,” he said in a statement today.

He said foreign labour could be employed for work which Malaysians are not keen to take up.

The federation also recommended firm action against employers under Section 60M of the Employment Act 1955, which states that no employer shall terminate the contract of service of a local employee for the purpose of employing a foreign employee.

Any employer or company found guilty of breaching the section may be fined up to RM50,000 for each offence.

Yesterday, human resources minister V Sivakumar warned that the quota approval of employers who engage foreign workers through the Foreign Workers Employment Relaxation Plan will be revoked if they are found to have fired local workers.

Sivakumar said the ministry had received many complaints of companies sacking local workers after their applications for foreign worker quota were approved.

The latest involved the dismissal of 102 employees in Penang, he said, quoting Bernama.

He warned employers and companies that their quota applications and permission to employ foreign workers were approved to cover the shortage of manpower and should never be used to replace existing local staff.