Employment Act & Related Act - DAY 1

PILAH TRAINING
Prepared by : Thamil Selvi MM

MBA HRM
University of Wales
United Kingdom (1998)
Malaysian Industrial Relations &
Employment Law

Employment Law
Learning objectives
Defining who is an employee
Types of employment contract
Terms and conditions of employment
Common express terms
Implied terms
Provisions of the Employment Act
Provisions of the Children & Young Persons

(Employment) Act
Employment Law
Malaysia labor law

Employment Law
Employment Act 1955

Who is
covered?
Employment
Act 1955
What
elements
are
covered?
Other
related
acts
Employment Law
Introduction
Akta Pekerjaan 1955 atau Akta 265 di gubal
pada tahun 1955 dan telah dipinda hampir
keseluruhannya pada tahun 1998.
Akta ini mengandungi peruntukanperuntukan yang bertujuan melindungi

pekerja dari sebarang ekploitasi oleh
majikan dan meletakkan faedah-faedah
minima yang perlu diberikan pada pekerja
YANG DILINDUNGI
di bawah Akta ini.
Employment Law
Employment Act 1955
Purpose;
To provide minimum benefits for workers
covered by the act
2. To establish certain rights for both employers
and employees.
3. To protect workers from exploitation by the
employers
Who are covered?
1.
1.
2.
Those who earn not more than RM1500 per month

(EA) or RM2500 p.m (in case of Sabah and
Sarawak)
Those who carry out manual labor or supervise such
7
workers
Employment Law
Implikasi EA 1955
mana-mana kontrak
pekerjaan yang tidak
mengikuti peruntukanperuntukan di bawah Akta ini
adalah terbatal dan tidak
efektif.
Pekerja yang dilindungi di

bawah Akta ini boleh membuat
lapuran dan tuntutan jika
majikan gagal mematuhi faedah
minima yang ditetapkan oleh
Akta Pekerjaan 1955

Employment Law
COE vs COS
Different
between COE and
COS
Which is covered under EA
1955

Employment Law
Contract of employment
Employees are employed under a contract
of employment= contract of service.
Self-employed persons or contract for

service are not within the scope of
employment laws.
Employment Law
10
Control Test
Is a tests to determine whether a worker is an
employee or not
Questions asked by the courts include:
How much control is imposed by the employer on the worker?
Who provides the tools, raw materials and equipment needed to

do the work?
How is payment made?
Are contributions made to statutory funds such as EPF &
SOCSO?
Is there a written contract, and if so, what are its terms?
Is the worker required to comply with organisational rules?

Employment Law
11
Individual employment contract
Contract of
service
Individual
COE

Employment Law
Employment
act 1955
12
Contracts of employment
A contract of employment can be:
Temporary or for an indefinite period

(permanent)
Part-time or full-time

Employment Law
13
Terms and conditions of

employment
Express terms & conditions of
employment are usually written into:
a letter of appointment;
a company handbook; or
a collective agreement.

Employment Law
14
Common express terms & conditions
Job title
Working hours
Other benefits
Probationary period
Retirement age
Notice period
prior to
termination of
contract
Wages, allowances,
bonus
Holiday and leave
entitlements

Employment Law
15
Terms and conditions of service

Implied terms = obvious terms that courts assume
exist in every employment contract, including:
Employees obligation to work:
with due care
obediently
Faithfully
Employers obligation to:

Provide safe work
Maintain relationship of mutual respect
Employment Law
16
Terms and Conditions of Service,

cont.
Terms and conditions must comply with the

relevant employment laws.
Terms and conditions can only be changed
by mutual consent between employer and
employee.

Employment Law
17
The Employment Act

Coverage of Act
Employees earning not more than RM1,500
per month who:
work in Peninsular Malaysia.
Work under contract of service

Employment Law
18
The Employment Act, cont.

Exceptions to RM1,500 Wage Ceiling
1.
Employees engaged as manual workers
2.
Supervisors of manual workers
3.
Employees who operate or maintain a

vehicle for transport of passengers or
goods
4.
Domestic servants

Employment Law
19
The Employment Act, cont.

Domestic Servants are NOT entitled to
the minimum benefits provided for
under the Act.

Employment Law
20
Sabah & Sarawak

Employees working in Sabah or
Sarawak are protected by the:
Sabah Labour Ordinance, or the
Sarawak Labour Ordinance.
The contents of the SLOs are similar to the

Employment Act.
Employment Law
21
The Employment Act - wages

Wages are defined as basic wages and all
other payments due under the contract of
service, but excluding:
Annual bonus
Overtime payment
Commissions
Subsistence allowance
Travelling
allowance
Employment Law
22
The Employment Act wages, cont.

Advances on wages limited to one
months wage unless for purpose of:
Buying land or house, or renovating a house
Buying a bicycle or car
Buying livestock
Buying shares in employers business
Any other purpose, requires permission from

DG of Labour.
Employment Law
23
Wages must be paid at least once a month.
Wages must be paid either in cash, cheque

or direct credit to bank account.

Employment Law
24
Deduction from wages strictly

controlled.
Deductions only possible without
permission from employee for:
1. Recovery of overpaid wages
2. Payments to agencies as required by law
3. Recovery of advance where no interest
imposed
Employment Law
25

Non-payment of wages
Employees earning up to RM5,000 pm who do
not receive their wages or other payments
due, can lodge a complaint at the Department
of Labour.

Employment Law
26
Employment Act female employees
Women and night work
Women and underground work
Maternity protection

Employment Law
27
Employment Act working hours
Minimum of one rest day per week
Maximum hours per day = 8
Maximum hours per week = 48
Overtime payment required for work done

outside normal working hours
Maximum overtime per month = 108 hours

Employment Law
28
Employment Act leave
Public holidays minimum of 10 per year.

Four compulsory; six more chosen by
employer.
Premium rate of pay due if employee

required to work on a public holiday.
Annual leave increases with length of

service ranging from 8-16 days.
Employment Law
29
Employment Act leave, cont.
Sick Leave increases with service ranging

from 14-22 days per year.
Employees only entitled to paid sick leave if
certified ill by registered medical
practitioner. (No self-certification)
If employer appoints panel doctors,
employee must use their services, failing
which only entitled to unpaid sick leave.
Employment Law
30
Employment Act termination

benefits
One-two years of
service
10 days wages for

every year of service
More than 2 years, but 15 days wages for

less than 5 years of
service
More than 5 years of
service
20 days wages for


Employment Law
31
Children and Young Persons

(Employment) Act
Children and Young Persons (Employment)
Act controls employment of these employees
but does not prohibit it.
Children = persons aged under 14 yrs
Young persons = persons aged 14-16 yrs

Employment Law
32

(Employment) Act
Children shall not work between the hours of 8.00 p.m.
and 7.00 p.m. and they must be permitted a rest of 30
minutes after every three consecutive hours of work.
They may not work more than 6 hours per day.
child working in any public entertainment the restriction

of night works does not applied. These can be found
under Section 5(1) and (2) of the Act.
Employment Law
33
Young person
For young people, under Section 6(1) of the act, they are not
permitted to work between 8.00 p.m. and 6.00 a.m. and are entitled
to rest break of at least 30 minutes every 4 hours of work.
The maximum hours of work allowed are 7 in a day but for

apprentice they may work for full 8 hours per day.
The restriction of night work does not apply to young person

employed in public entertainment and agriculture sector is stipulated
under Section 6(2).
The Factories and Machinery Act also helps to protect the rights of
young persons, where they
are prohibited to carry out work
involving machinery or in proximity
toLawsuch machinery.
Employment
34

(Employment) Act, cont.
Hours of work of children and young

persons limited
Type of work that may be carried out by

children and young persons limited

Employment Law
35

Employment Act & Related Act - DAY 1

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PILAH TRAINING

Prepared by : Thamil Selvi MM

Malaysian Industrial Relations &

Defining who is an employee

Types of employment contract

Terms and conditions of employment

Common express terms

Provisions of the Employment Act

Provisions of the Children & Young Persons

Malaysia labor law

Malaysian Industrial Relations &

Employment Act 1955

Akta ini mengandungi peruntukanperuntukan yang bertujuan melindungi

Employment Act 1955

Those who earn not more than RM1500 per month

Pekerja yang dilindungi di

Malaysian Industrial Relations &

between COE and

Malaysian Industrial Relations &

Employees are employed under a contract

of employment= contract of service.

Self-employed persons or contract for

How much control is imposed by the employer on the worker?

Who provides the tools, raw materials and equipment needed to

How is payment made?

Are contributions made to statutory funds such as EPF &

Is there a written contract, and if so, what are its terms?

Is the worker required to comply with organisational rules?

Individual employment contract

Malaysian Industrial Relations &

Temporary or for an indefinite period

Malaysian Industrial Relations &

Terms and conditions of

Malaysian Industrial Relations &

Common express terms & conditions

Malaysian Industrial Relations &

Terms and conditions of service

Employers obligation to:

Terms and Conditions of Service,

Terms and conditions must comply with the

Malaysian Industrial Relations &

The Employment Act

work in Peninsular Malaysia.

Work under contract of service

Malaysian Industrial Relations &

The Employment Act, cont.

Employees engaged as manual workers

Supervisors of manual workers

Employees who operate or maintain a

Malaysian Industrial Relations &

The Employment Act, cont.

under the Act.

Malaysian Industrial Relations &

Sabah & Sarawak

Sabah Labour Ordinance, or the

Sarawak Labour Ordinance.

The contents of the SLOs are similar to the

The Employment Act - wages

The Employment Act wages, cont.

months wage unless for purpose of:

Buying land or house, or renovating a house

Buying a bicycle or car

Buying shares in employers business