Employment Law

EMPLOYMENT LAW
LEARNING OBJECTIVES
At the end of chapter, the students will be able to:
1.Understand the Industrial Relations and Employment Act
2.Identify the basic rights of employee
3.Determine the roles of government in Industrial

Relations
EMPLOYMENT LAW
INTRODUCTION TO INDUSTRIAL RELATIONS ACT

(IRA) AND EMPLOYMENT ACT (EA)
• Provide the legislative framework for the system of IR

• Outline the rights and obligations of the parties at workplace
• The rights and obligations of employers and employees
• The employment laws lay down provisions which affect all
employees
• The laws clarify the rights of trade unions
EMPLOYMENT LEGISLATION
• The major pieces of employment-related legislation
• Laws providing for basic benefits Employment Act, 1955
1. Wages Councils Act, 1947
2. Sabah Labor Ordinance
3. Sarawak Labour Ordinance
4. Children and Young Persons Act, 1966
5. Workers Minimum Standards of Housing and Amenities Act, 1990
6. Weekly Holidays Act, 1950
7. Pensions Act, 1980

– Laws establishing the industrial relations
framework:
i. Trade Unions Act, 1959
ii. Social security laws
iii. Safety laws
iv. Law restricting

employers from
hiring non-citizens
v. Law relating to
training of
employees
• Brief outlines of some of the important
laws:
1. The Employment Act

Lays down provision to protect workers from exploitation
2. The Employees Provident Fund Act

A system of compulsory savings to support themselves once
they retire
3. The Employees's Social Security Act

Ensures that employees receive compensation
4. The Occupational Safety and Health Act
Establishes guidelines and lays down responsibility related
to safety and health
5. The Trade Union Act

Seeks to control the activities of trade unions
6. The Industrial Relations Act

Regulate the relations between employers and workmen
ROLES OF GOVERNMENT IN
INDUSTRIAL RELATIONS
a. Ministry of Human Resources

f. Employees Social Security
b. Department of Labor, Peninsular Organization (SOCSO)
Malaysia
g. Employees Provident
c. Department of Industrial Fund (EPF)
Relations
h. Human Resource Development
d. Department of Trade Unions Corporation
e. Department of Occupational Safety i. Industrial Court

and Health
OVERVIEW OF EMPLOYMENT
ACT
• Provides minimum benefits for all workers
• Establishes certain rights
• Has been amended a number of times
• Interpretations of certain parts (change of public policy)

COVERAGE OF THE EMPLOYMENT
ACT
1. Covers all employees with no age relevant
2. Works in Peninsular Malaysia
3. Works in private sector
4. Covers employee who earns not more than RM1,500 per month
5. Covers all part-timer, temporary and legally employed immigrant

INDIVIDUAL EMPLOYMENT CONTRACTS
• An agreement by individual to work for another in return for

remuneration.
• Made orally or written.
• Employment Act requires:
– More than one month contract of service to be in writing

– A clause of the manner to terminate service
– It is illegal for employer to restrict employees involve in trade
union
Contract of Service vs. Contract for Service
Contract of Service
An agreement made or signed by an individual

to work for another in return for remuneration
Contract for Service
An agreement made or signed by an individual

to provide a service to others.
BASIC RIGHTS OF EMPLOYEE
1. Wages
2. Probation
3. Working Hours
4. Overtime
5. Absence without Permission
6. Rest Day
7. Public Holidays
8. Annual Leave
9. Sick Leave
10.Payment of Medical Bills
11.Notice of Termination
12.Termination
13.Retrenchment
14.Termination Benefits
WAGE
S
• Maximum wage period is no longer than one month
• Payment must be paid not later than 7 days after the end
of wage period (grace period)
• The mode of payment must be in 'legal tender'

PROBATION
• When an employee is first offered a job, it is

common practice that he or she will be placed
on probation - a trial period of employment.
WORKING HOURS
• Maximum 8 hours per day (6 full days per week)
• Maximum 48 hours per week
• After 5 hours of working, 30 minutes break should be given
• shift workers hours can exceed 48 hours per week
• Exception:
– Maximum daily working hours can be extended to 9 hours if employee

works for 5 or 5 1/2 day week
– Any extended break not considered as working hours
OVERTIME
• Any work done in excess of the normal hours of work is

considered overtime.
• It is to be paid at special rates.

ABSENCE WITHOUT PERMISSION
• Employment Act, S15(2) states that an employee shall

be deemed to have broken his contract of service
with the employer without prior leave from his
employer when:
• he has been continuously absent from work.

• for more than 2 consecutive working days
• Unless he has a reasonable excuse

REST DAY
• An employee is entitled to one rest day per week.
• The employer may decide on which day that depends on

the employer's business nature.
• Work on rest day:
– For Monthly Rated Worker

– For Daily Rated Worker
PUBLIC HOLIDAYS
• Employment Act grants employees a minimum of 10 public holidays,

where 4 days are mandatory / compulsory:
– National Day
– Agong's Birthday
– State Ruler's Birthday
– Labor Day
• Employer can decide for the other 6 days.

ANNUAL LEAVE
• An employer must decide the annual leave his

employees are to be entitled to and a clause of this
should be included in the employee's written terms and
conditions of employment.
• In the Act, the minimum annual leave is stated as

follows:
– Less than 2 years service 8 days
= 12 days
– Between 2 years to 5 years 16 days
=
– More than 5 years
=
SICK LEAVE
• Employee is entitled to the following minimum paid sick

leave per year:
– Less than 2 year's service = 14 days

– Between 2 years to 5 years = 18 days
– More than 5 years = 22 days
• To receive paid sick leave, an employee must fulfill

certain conditions imposed by the Act.
PAYMENT OF MEDICAL BILLS
• The law requires an employer to pay for any medical

examination.
• To cover hospitalization charges and the more costly bills

charged, insurance coverage can be bought by the
employer.
NOTICE OF TERMINATION
• The employment Act provides employer and employees

freely to agree on the notice period.
• There are 2 provisions relating to notice of termination:
– The lenght of the notice period required of each party must be

the same
– The employer can decide on the notice period required and

have this agreed to in the contract of service.
TERMINATION
• A contract of employment comes to an end because:
– Resignation
– Retirement
– Fixed-term contract
– Employee dies or employer dies
– Retrenchment / Lay-off
– Frustration of contract
– Non-confirmation of a probationer
– Breach of contract
– Dismissal
– Constructive dismissal
RETRENCHMENT
• This is a situation where an employer terminates the

service of one or more employees because no longer
work available for the person in the organization.
• Tactics used to avoid retrenchment
– Retrain and Redeploy

– Recruitment Freeze
– Voluntary Separation
– Reduce Costs
– Look for New Business Opportunities
– Cut Wages and Working Hours
TERMINATION BENEFITS
• Not all employees are entitled to termination or

retrenchment benefits.
• Termination benefits are only for employee:
– within the scope of the Employment Act

– has more than 1 year or 12 months service
– within the scope of a collective agreement
– has a clause requiring such benefits in his individual contract
of employment
SUMMARY
• The defamation is publication of untrue statement which

affects a person’s reputation or image.
• There are several ways of defamatory statements and it
can be categorized into three categories which are
libel, slander and innuendo.
• There are four elements to prove defamation and certain
defences are available to the defendant.

Employment Law

Uploaded by

Copyright:

Available Formats

Employment Law

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Employment Law

Uploaded by

Copyright:

Available Formats

EMPLOYMENT LAW

1.Understand the Industrial Relations and Employment Act

2.Identify the basic rights of employee

3.Determine the roles of government in Industrial

INTRODUCTION TO INDUSTRIAL RELATIONS ACT

• Provide the legislative framework for the system of IR

1. Wages Councils Act, 1947

2. Sabah Labor Ordinance

3. Sarawak Labour Ordinance

4. Children and Young Persons Act, 1966

5. Workers Minimum Standards of Housing and Amenities Act, 1990

6. Weekly Holidays Act, 1950

7. Pensions Act, 1980

ii. Social security laws

iii. Safety laws

iv. Law restricting

1. The Employment Act

2. The Employees Provident Fund Act

3. The Employees's Social Security Act

5. The Trade Union Act

6. The Industrial Relations Act

a. Ministry of Human Resources

e. Department of Occupational Safety i. Industrial Court

• Provides minimum benefits for all workers

• Establishes certain rights

• Has been amended a number of times

• Interpretations of certain parts (change of public policy)

2. Works in Peninsular Malaysia

3. Works in private sector

5. Covers all part-timer, temporary and legally employed immigrant

• An agreement by individual to work for another in return for

• Made orally or written.

• Employment Act requires:

– More than one month contract of service to be in writing

An agreement made or signed by an individual

Contract for Service

An agreement made or signed by an individual

• Maximum wage period is no longer than one month

• The mode of payment must be in 'legal tender'

• When an employee is first offered a job, it is

• Maximum 48 hours per week

• After 5 hours of working, 30 minutes break should be given

• shift workers hours can exceed 48 hours per week

– Maximum daily working hours can be extended to 9 hours if employee

• Any work done in excess of the normal hours of work is

• It is to be paid at special rates.

• Employment Act, S15(2) states that an employee shall

• he has been continuously absent from work.

• Unless he has a reasonable excuse

• An employee is entitled to one rest day per week.

• The employer may decide on which day that depends on

• Work on rest day:

– For Monthly Rated Worker

• Employment Act grants employees a minimum of 10 public holidays,

• Employer can decide for the other 6 days.

• An employer must decide the annual leave his

• In the Act, the minimum annual leave is stated as

• Employee is entitled to the following minimum paid sick