Comparative Labor Law Studies in Indonesia and Malaysia: Social–Economic Inequality and Governance of Migrant Workers

Yeti Kurniati () and Abdillah Abdillah
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Yeti Kurniati: Law Science Department, Universitas Langlangbuana, Bandung City 40361, West Java, Indonesia
Abdillah Abdillah: Center for Decentralization & Participatory Development Research (CDPD), Faculty of Social and Political Sciences, Universitas Padjadjaran, Bandung City 40135, West Java, Indonesia

Laws, 2025, vol. 14, issue 6, 1-25

Abstract: This study explores the comparative employment laws related to migrant worker protection in Indonesia and Malaysia, with a focus on the socioeconomic inequalities faced by migrant workers in both countries. The study identifies key challenges in law enforcement, including migrant workers’ vulnerability to exploitation, poor recruitment procedures, and limited access to adequate legal education and information. A qualitative–interpretive methodology is used to explore in-depth issues related to employment laws and the socio-economic conditions of migrant workers. The study shows that Indonesia’s decentralized system results in fragmented and inconsistent law enforcement across regions, exacerbated by weak institutional capacity, legal gaps, and bureaucratic inefficiencies. Meanwhile, Malaysia’s centralized but pro-employer governance prioritizes economic growth over labor rights, leaving migrant workers—especially in the domestic and informal sectors—exposed to exploitation, wage discrimination, debt bondage, and limited access to social protection. To address these inequalities, bilateral cooperation between Indonesia and Malaysia is needed, including stronger law enforcement and equal protection for local and migrant workers. The study’s key finding is that these institutional weaknesses not only perpetuate migrant workers’ vulnerability, but also deepen structural socioeconomic inequalities between workers, agents, and employers. The study underscores the need for stronger law enforcement, formalization of the informal sector, harmonization with international labor conventions, and stronger bilateral cooperation. This study contributes to labor law studies and policy debates by offering insights into the institutional reforms necessary for more equitable and sustainable migrant worker governance in Southeast Asia.

Keywords: comparative labor law; worker rights; governance; labor regulations; Indonesia and Malaysia (search for similar items in EconPapers)
JEL-codes: D78 E61 E62 F13 F42 F68 K0 K1 K2 K3 K4 (search for similar items in EconPapers)
Date: 2025
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