EMPLOYMENT ACT 1955

AND
EMPLOYEES SOCIAL
SECURITY ACT 1969

TABLE OF CONTENTS
Employment Act 1955
Introduction
Workmens Compensation Act 1952
Employees Social Security Act 1969

EMPLOYMENT ACT 1955

OBJECTIVES
TO PROVIDE LEGAL PROVISION PERTAINING
TO EMPLOYMENT OF EMPLOYEES.
TO ENSURE THE RIGHT OF WORKERS
EMPLOYED BY THE EMPLOYER.
TO ENSURE THE WELFARE AND PROTECTION
O EMPLOYEES RIGHT IN RELATION TO
ACCIDENTS.

INTRODUCTION

Was gazetted on 1st June 1957.

These Act to ensure protection of the
employees includes:
a) Compensation for person involve in any
accident or contracted any occupational
disease while at work
b) Normal and sick leave
c) Wages, breaks and rest day by employer

MAIN PROVISIONS

Contract of Service - Every employee must be

given a written contract of service containing the
terms and conditions of the employment, including
provisions relating to the termination of contract.
Payment of Wages.
Deductions of Wages - Maintaining of labour
register pertaining to personal particulars of
employees, payment of wages and deduction of
wages.
Relating to the Truck System.
Priority of Wages

MAIN PROVISIONS

Contractors and Principles.

Employment of Women.
Maternity Protection - Special provisions for the
protection of female employees pertaining to
night work and maternity benefits.
Domestic Servants.
Rest Days, Hours of Work, Holidays and other
condition of service.
Termination, Lay-Off and Retirement Benefit
Employment of Foreign Employees

MAIN PROVISIONS

Register, Returns, and Notice Board.

Inspections.
Complaints and Inquires.
Procedure
Offences and Penalties.
Regulations
Repeal and Saving.

CONTENTS OF THE ACT

This Act contains twenty-one (21) Parts and two (2)
Schedules as follows:

Part I
Part II
Part III
Part IV
Part V
Part VI
Part VII
Part VIII

Preliminary
Contract of Service
Payment of Wages
Deductions from Wages\
Relating to the Truck System
Priority of Wages
Contractors and Principals
Employment of Women

CONTENTS OF THE ACT(cont.)

Part IX
Part X
Part XI
Part XII
Part XIIA
Part XIIB
Part XIII

Maternity Protection
Employment of Children and
Young Persons
Domestic Servants
Rest Days, Hours of Work,
Holidays and Other Conditions of
Service
Termination, Lay-Off and
Retirement Benefits
Employment of Foreign
Employees
Registers, Returns and Notice
Boards

CONTENTS OF THE ACT(cont.)

Part XIV
Inspections
Part XV
Complaints and Inquiries
Part XVI
Procedure
Part XVII
Offences and Penalties
Part XVIII
Regulations
Part XIX
Repeal and Saving
First Schedule
[Section 2(1)]
Second Schedule
[Section 103]

APPLICATION

Shall apply to:

i. West Malaysia.
ii. Federal Territory of Labuan whose monthly
wages do not exceed RM1,500
iii. All manual laborers irrespective of their
wages.

INTERPRETATION

EMPLOYEE (as in First Schedule)

Any person who has entered into a contract of service
with an employer under which such persons wages
do not exceed RM1,500 a month.
Any person irrespective of the amount of wages he
earns in a month and has entered into a contract of
service with an employer in pursuance of which he is
engaged in.

INTERPRETATION
EMPLOYER
Any person who has entered into a contract of
service to employ any other person as an
employee and includes the agent, manager or
factor of such first mentioned person, and the
word "employ", with its grammatical variations
and cognate expressions, shall be construed
accordingly;

INTERPRETATION
PLACE OF WORK
Any place where work is carried on for
an employer by an employee;

CONTRACTOR
Any person who contracts with a principal to
carry out the whole or any part of any work
undertaken by the principal in the course of or
for the purposes of the principal's trade or
business;

INTERPRETATION

CONTRACT OF SERVICE
Any agreement, whether oral or in writing
and whether express or implied, whereby
one person agrees to employ another as an
employee and that other agrees to serve his
employer as an employee and includes an
apprenticeship contract;

PROVISION PERTAINING TO
SAFETY, HEALTH & WELFARE
a)
b)
c)
d)
e)
f)
g)

Employment of Women
Maternity Protection
Sick Leave
Rest Days
Hours of Work
Annual leave
Work on a Rest Day

a) Employment of Women

Prohibition of night work:

i. Work between 10.00 pm to 5.00 am is
subjected to the approval of the Director
General
ii. Work in any industrial or agricultural
undertaking
iii. Work the following day without having a
period of eleven consecutive hours rest from
such work

a) Employment of Women

Prohibition of underground work:

i. In any underground work. Underground
working refers to any undertaking in which
operations are conducted for the purpose of
extracting any substance from below the
surface of the earth, the ingress to and
egress from which is by means shafts, adits
or natural caves.

Prohibition of employment by Minister.

b) Maternity Protection

Is the entitlement of every women. Condition:

i. Parturition resulting after at least 28 weeks of
pregnancy in the issue of a child or children,
whether alive or dead.
ii. Shall not be entitled to any maternity
allowance if at the time of her confinement,
she has 5 or more surviving children
iii. She has been employed at any time in the 4
months immediately before her confinement.

b) Maternity Protection
iv. She has been employed for a period of 90
days during the 9 months immediately
before her confinement
v. Maternity leave is for a period not less 60
consecutive days in respect of each
confinement
vi. Minimum Rate of Maternity Allowance shall
be RM6 per day Employment (Minimum
Rate of Maternity Allowance) Regulations
1980

c) Sick Leave

Every employee is entitled to sick leave.

Entitlement for paid sick leave is determined
after examination at the expense of the
employer by a registered medical practitioner
duly appointed by the employer.

c) Sick Leave
Entitlement as follows:

PERIOD OF
EMPLOYED
< 2 years

SICK LEAVE
14 days in each calendar

2 years 5 years

18 days in each calendar

> 5 years

22 days in each calendars

60 days (if hospitalised)

d) Rest Days
Every employee shall be allowed in each week a
rest day.
Roster shall be prepared by the employer
1 rest day after work continuously for a period of
30 hours

e) Hours of Work

Any employee shall not be required to

work:
i.

More than 5 hours without a rest of a least

30 minutes
ii. More than 8 hours in one day
iii. More than 48 hours in one week.

f) Annual leave
An employee shall be entitled to paid annual
leave as follows:
PERIOD OF
EMPLOYED

ANNUAL LEAVE

< 2 years
2 years 5 years
> 5 years

8 days for every 12 months

12 days for every 12 months
16 days for every 12 months

g) Work on a Rest Day

No employer may require any employee to work

more than 12 hours in any day except to the
below situations.

As ordered by the employer is allowed under

certain conditions:
i. Engaged in a work which by reason of its
nature has to be carried on continuously or
continually by 2 or more shifts
ii. Occurrence of accident at the workplace
iii. Work essential to the life community

g) Work on a Rest Day

iv. Urgent work to be done to machinery and
plant
v. Work essential for the defense of national
security
vi. An interruption of work which was
impossible to foresee
vii. Work essential to the economy of Malaysia
(any industrial sector) or any essential
services as defined in the Industrial
Relations Act 1967.

REGULATIONS UNDER
EMPLOYMENT ACT 1955
a) Employment (Procedure Reciprocal
Provisions) Regulations 1957
b) Employment (Employment of Women) (Female
Conductors) Regulations 1958
c) Employment (Employment of Women) (Shift
Workers) Regulations 1970
d) Employment (Minimum Rate Maternity
Allowance) Regulations 1976

REGULATIONS UNDER
EMPLOYMENT ACT 1955
e) Employment (Termination and Lay-Off
Benefits) Regulations 1980
f) Employment (Limitation of Overtime Work)
Regulations 1980
g) Employment (Limitation of Powers of Officers)
Regulations 1993

WORKMENS COMPENSATION
ACT 1952

WORKMENS COMPENSATION ACT

1952
The Act provides for the payment of compensation for
injuries sustained in accidents during employment and
imposes an obligation on the employers to insure
workers.
Workmens Compensation (Foreign Workers Scheme)
(Insurance) Order 1998 issued under this Act requires:
every employer employing foreign workers to insure
with the panel of insurance companies appointed
under this order
to effect payment of compensation for injuries
sustained from accidents during and outside working
hours

EMPLOYEES SOCIAL
SECURITY ACT 1969
(AMENDMENTS) 1992

OBJECTIVES
TO PROVIDE SOCIAL SECURITY IN CERTAIN
CONTIGENCIES.
TO MAKE PROVISIONS FOR CERTAIN OTHER
MATTERS IN RELATION THERETO

APPLICATION

The Act shall apply to:

i. All industries having one or more employees
ii. All employees where this Act is applicable
shall be insured

Industry any business, trade, undertaking,

manufacture and others. Exceptions to
industries:
i. Government
ii. Mobile hawkers

APPLICATION

This Act does not cover all employees.

Among the employees that are not covered
are:
i. Any person whose wages exceed RM2,000
a month (optional)
ii. The spouse or spouses of the principal
employer or the immediate employer.
iii. Any person whose employment is of causal
nature and who is employed otherwise than
for the purposes of the employers industry.

APPLICATION
iv. Any person detained in any prison, Henry
Gurney School, detention camp, mental
hospital or leper settlement
v. Any member of the Malaysian Armed
Forces or of any Police Forces.
vi. A domestic servant.

PROVISION OF THE ACT

The main provision of the Act as follows:

i. Insurability and compensation
ii. Benefits
iii. Administration, Finance and Audit
iv. Adjudication of disputes and claims
v. Penalties
vi. Miscellaneous

INTRODUCTION TO SOCSO
The Social Security Organisation (SOCSO) is
under the Employees Social Security Act 1969.
SOCSO covers only Malaysian workers and
permanent residents.
Was set up to implement, administer and
enforce the Employees Social Security Act
1969 and the Employees Social Security
(General Regulations) 1971.

OBJECTIVES OF SOCSO
To assist the promotion or co-operation with
existing institution to enhance the level of health,
safety and welfare of the contributors.
To assist the invalid contributor in the
rehabilitation and reinstatement of employment
Benefits include the supply of artificial limbs and
other prosthesis appliances as well as
employment opportunities.

SOCSO PROTECTION SCHEME

There are two SOCSO Protection Schemes.

They are:
a) Employment Injury Insurance Scheme
b) Invalidity Pension Scheme

a) EMPLOYMENT INJURY INSURANCE

SCHEME

Provides employees with coverage by way of

cash benefits and medical care in the event of
any disablement or death due to employment
injury.
This is in cases related to Occupational
Accidents which includes:
a) Accident occurring while performing his
duty.

a) EMPLOYMENT INJURY INSURANCE

SCHEME
b) Accidents while traveling:
i. Traveling on a route between his residence
and his workplace
ii. Traveling on a journey for any reason directly
connected to his employment
iii. Traveling on a journey between place of work
and place where he takes his meal during any
authorised recess
so long as the accident does not occur during a
stoppage or a deviation from the route

a) EMPLOYMENT INJURY INSURANCE

SCHEME
c) Any occupational disease (27 types) as listed in
Fifth Schedule (Sec. 28)
i. Insured person enter into a contract of
service to work in any occupation specified in
the Fifth Schedule
ii. Contract any disease while working or 60
months after ceasing to be so employed.
Example
hearing loss due to excessive noise (85 dBA
for the period of 8 hours)
Pneumoconiosis (silicosis, asbestosis)

a) EMPLOYMENT INJURY INSURANCE

SCHEME

BENEFITS:
i. Medical Benefit
ii. Temporary Disablement Benefit
iii. Permanent Disablement Benefit
iv. Constant Attendance Allowance
v. Dependants Benefit
vi. Funeral Benefits
vii. Rehabilitation Benefit

b) INVALIDITY PENSION SCHEME

Provides 24-hour coverage to employees
against invalidity and death due to any cause
before attaining the age of 55 years.
The 1% monthly contribution is shared equally
between the employer and employee.

b) INVALIDITY PENSION SCHEME

BENEFITS:
i. Invalidity Pension

ii. Invalidity Grant

CONCLUSION

These Act to ensure protection of the employees

includes:
a) Compensation for person involve in any accident or
contracted any occupational disease while at work
b) Normal and sick leave
c) Wages, breaks and rest day by employer
Stipulates the duties of both employer and employee
to contribute SOCSO schemes.
By enacting such legislations, employers have the
obligation and duty to protect their employees.
However, for foreign workers, a separate protection
scheme applies.

Any question..????