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Malaysian Industrial Relations &Employment Law 1
PILAH TRAINING
Prepared by : Thamil Selvi MM
MBA HRM
University of WalesUnited Kingdom (1998)
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Malaysian Industrial Relations &Employment Law 2
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Malaysian Industrial Relations &Employment Law 3
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
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Malaysia labor law
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Employment Act 1955
EmploymentAct 1955
Who iscovered?
Otherrelated
acts
Whatelements
arecovered?
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Introduction
Akta Pekerjaan 1955 atau Akta 265 di gubalpada tahun 1955 dan telah dipinda hampir
keseluruhannya pada tahun 1998.
Akta ini mengandungi peruntukan-
peruntukanyang bertujuan melindungipekerja dari sebarang ekploitasi olehmajikan dan meletakkan faedah-faedahminima yang perlu diberikan pada pekerjaYANG DILINDUNGI di bawah Akta ini.
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Employment Act 1955
Purpose;
1. To provide minimum benefits for workerscovered by the act
2. To establish certain rights for both employersand employees.
3. To protect workers from exploitation by theemployers
Who are covered?1. Those who earn not more than RM1500 per month
(EA) or RM2500 p.m (in case of Sabah andSarawak)
2. Those who carry out manual labor or supervise such
workers Malaysian Industrial Relations &Employment Law 7
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Implikasi EA 1955
mana-mana kontrakpekerjaanyang tidakmengikuti peruntukan-
peruntukan di bawah Akta iniadalah terbatal dan tidak
efektif.
Pekerja yang dilindungi dibawah Akta ini boleh membuat
lapuran dan tuntutan jikamajikan gagal mematuhi faedah
minima yang ditetapkan olehAkta Pekerjaan 1955
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COE vs COS
Different between COE andCOS
Which is covered under EA1955
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Contract of employment
Employees are employed under a contract
of employment contract of service
.
Self-employed persons or contract for
serviceare not within the scope of
employment laws.
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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?
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Individual employment contract
Contract ofservice
IndividualCOE
Employmentact 1955
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Contracts of employment
A contract of employment can be:
Temporary or for an indefinite period
(permanent)
Part-time or full-time
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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.
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Common express terms & conditions
Job title Wages, allowances,
bonus
Working hours Holiday and leave
entitlements
Other benefits Probationary period
Notice period
prior to
termination of
contract
Retirement age
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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
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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.
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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
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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
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The Employment Act, cont.
Domestic Servants are NOTentitled to
the minimum benefits provided for
under the Act.
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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.
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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
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The Employment Actwages, 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.
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The Employment Actwages, cont.
Wages must be paid at least once a month.
Wages must be paid either in cash, cheque
or direct credit to bank account.
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The Employment Actwages, cont.
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
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The Employment Actwages, cont.
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.
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Employment Actfemale employees
Women and night work
Women and underground work
Maternity protection
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Employment Actworking 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
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Employment Actleave
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.
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Employment Actleave, 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.
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Employment Acttermination
benefits
One-two years of
service
10 days wages for
every year of service
More than 2 years, but
less than 5 years of
service
15 days wages for
every year of service
More than 5 years of
service
20 days wages for
every year of service
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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
Child d Y P
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Children and Young Persons
(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 30minutes after every three consecutive hours of work.
They may not work more than 6 hours per day.
child working in any public entertainment the restrictionof night works does not applied. These can be foundunder Section 5(1) and (2) of the Act.
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Young person
For young people, under Section 6(1) of the act, they are notpermitted to work between 8.00 p.m. and 6.00 a.m. and are entitledto rest break of at least 30 minutes every 4 hours of work.
The maximum hours of work allowed are 7 in a day but forapprentice they may work for full 8 hours per day.
The restriction of night work does not apply to young personemployed in public entertainment and agriculture sector is stipulatedunder Section 6(2).
The Factories and Machinery Act also helps to protect the rights ofyoung persons, where they are prohibited to carry out work
involving machinery or in proximity to such machinery.Malaysian Industrial Relations &
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Children and Young Persons
(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