The Workmen's Compensation Act 1952 was amended in August 1996.

Under Section  26(2) of the Amended Act, it is mandatory for every employer to insure all the foreign workers employed by him under an approved insurance scheme in respect of any liability he may incur under the Workmen's Compensation Act 1952.

Any employer who fails to insure the foreign workers under the approved insurance scheme shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding RM20,000 or to imprisonment for a term not exceeding 2 years or both.