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Introduction and background of the sources of employment law in Malaysia.

Perfect labour laws do not cover the connection between employer and employee in the past.
This means that employers have an uncontrollable power and are free to do rather them
comparable to their employees. The workers are overloaded and do not receive fair handling.
Workers are not like slaves where their fate and future lie entirely in the hands of employers.

The industrial insurgency in Europe began to raise the working class in demanding their rights
and its influence spread to other countries around the world. For example in Britain workforces
have become a strong group so that they are able to dominate the local political world and the
Labor Party has once led the leadership of the country.

Labour laws are presented gradually. Labour laws govern employee and labour relations even
though they are still free to enter into contracts and agree on certain terms. Not every term of
their service contract must be against the law. The law has guaranteed things like wages,
working hours, holidays and so on.

In Malaysia too, labour laws govern the relationship between employer and employee. The
development of labour laws in Malaysia began when many Chinese and Indian labourers were
brought into Malaya to work in the mines and rubber fields. The rapid growth and development
of ore mines and rubber estates in Malaya is increasing from time to time, and the number of
labour is increasing. The British who were miners or rubber miners through certain agents
brought in the Chinese and Indian labourers.

Initially, Chinese labourers contracted to work in ore mines for a certain period, and
subsequently, they were released to look for other jobs. Part of their wages is deducted to repay
the expenses of bringing them into Malaya. The state of work at that time was very bad and they
were suppressed.


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Rough into Malaya. Most of them are from South India and they work in Malaya on sugarcane
coffee plantations and rubber fields. They are also bound under an agreement system to work in
these estates for a period of two or three years. Some of them continue to work in the estates and
some work in various sectors, especially with the government. There is no specific law to protect
workers. The way the British merchants use is to appoint a leader from the races themselves to
manage their affairs. For example, in 1877, a Chinese Protector was appointed in the Straits
Settlements to guard the affairs of Chinese workers and to prevent oppression.


The Employment Act, 1955 is the principal legislative regime of labour affairs in Malaysia.

The Employment Act provides for minimum terms and conditions (mostly in monetary value)
for certain categories of employees: -

 Any employee as long as the monthly wage is less than RM2000.00 and
 Any worker in the field of manual work including craftsmen, trainers, transport operators,
supervisors or supervisors of manual workers, working men on board and even maids are
classified as employees although their salary exceeds RM2000.00 per month.