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EMPLOYMENT ACT 1955 IN MALAYSIA

Employment law in Malaysia is generally governed by the Employment Act 1955 (“Employment Act”). The Employment Actsets out certain minimum benefits that are afforded to applicable employees. ... Employees engaged in any capacity on a vessel (subject to certain other condition

What is the purpose of Employment Act 1955?


The Act enshrines the rights of both the employees and employers, and the obligations or responsibilities they are obliged to fulfill to have the legal protection. The scope of Employment Act 1955 only covers workers who are defined as “employees” under the Act.

Who is cover under Employment Act?

Employment Act: who it covers. All employees under a contract of service with an employer are covered, but there are exceptions. For example, Part IV of the Act which provides for rest days, hours of work and other conditions of service, does not cover managers or executives.

What is the normal working hours in Malaysia?

Normal business hours In Malaysia are 9 a.m. to 5 p.m. Mondays to Fridays, with many businesses and government agencies also open until noon on Saturdays.

Does working hours include lunch break in Malaysia?

Usually any lunch and tea breaks are not considered working hours unless employees are not free to leave the premises. In this situation, working hours will be inclusive of such breaks

What is the maximum overtime hours in Malaysia?

Malaysia for example, by law each employee is required to work 8 hours per day and 48 hours per week. Maximum total overtime allowed is 12 hours per day and 104 hours per month.

Can you get fired for refusing to work overtime?

The short answer is that, yes, you can fire an employee for refusing to work overtime. As long as the reason for firing an employee isn't discriminatory or retaliatory as prohibited by law, "at-will employment" means that you can fire your employee at any time for any reason.

Who is entitled to overtime pay in Malaysia?

Monthly rated employee: According to Section 60A (3)(a) Employment Act 1955, any overtime carried out in excess of the normal hours of work, the employee shall be paid at a rate of not less than one and half times (1 ½) their hourly rate of pay regardless of the basis on which their rate of pay is fixed.

Can a company refuse to pay overtime?

“You cannot refuse to pay for overtime hours actually worked. If the hours are worked, then the employee must be paid. ... If the employee hides the fact he or she is doing work off the clock and the employer otherwise has no reason to believe work was performed, technically the employer has no duty to pay the overtim

Can company deduct salary?

If you are covered by the Employment Act, your employer can deduct your salary only for specific reasons or if required by authorities. However, your employer cannot deduct more than 50% of your total salary payable in any one salary period. Find out more about the types of allowable salary deductions.

Can employer charge employee for mistakes?

No, employers cannot charge employees for mistakes, shortages, or damages. Only if you agree (in writing) that your employer can deduct from your pay for the mistake. ... Deductions must be for your benefit (and agreed to in writing), or done to comply with some aspect of state or federal law.

Is Saturday a working day in Malaysia?

In all states except the states of Kedah, Kelantan and Terengganu, offices are opened from Mondays to Fridays. Saturdays and Sundays are considered weekends and hence the offices are closed during these days. ... If the public holiday falls on a non-working day, the following day will be declared as a public holiday.

Can my boss reduce my pay?

If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee's race, gender, religion, and/or age). To be legal, a person's earnings after the pay cut must also be at least minimum wage.

Is  it legal to deduct pay from a salaried employee?

Allowed deductions An employer can deduct from a salaried employee's pay under certain circumstances. Salaried employees don't need to be paid for full workweeks in which they perform no work. Partial day absences may only be deducted from an employee's sick or vacation “bank”.

Can my employer change my pay structure?

Employment Agreement A business can't change a worker's compensation without his consent if the employee has an employment contract. Even if an employee doesn't have a contract with his employer, the company must give him "reasonable" warning of a change in his wage or salary.

Can I sue for emotional distress from my employer?

Can You Sue Your Employer for Emotional Distress? You may wonder if you can sue your employer for emotional distress. If your distress is caused by the negligent or intentional acts of someone else, you may be able to file a personal injury claim to recover compensation for your damages

Can you get fired for refusing to work on your day off?

Firing an employee during his or her day off is a complicated question in employment law. Unfortunately for most workers the answer is: yes. You can be fired on your day off for refusing to show up at work if your employer asks you to come.

What is unfair treatment at work?

Unfair treatment can mean a number of things. It could involve a staff member having their work undermined even though they're competent at their job. A manager could take a dislike to a particular employee and make their life difficult, unfairly criticising their work or setting them menial tasks.

What qualifies as wrongful termination?

Wrongful Termination. ... To be wrongfully terminated is to be fired for an illegal reason, which may involve violation of federal anti-discrimination laws or a contractual breach. For instance, an employee cannot be fired on the basis of her race, gender, ethnic background, religion, or disability.

Can I sue my employer for firing me?

Employers may not fire even at-will employees for illegal reasons, and discrimination is illegal. ... There are strict time limits and rules that apply to discrimination claims; for example, you must file a complaint of discrimination with a state Labor Department before you may sue your employer in industrial court.

What are the 3 basic employment rights for a worker?

Employees have the following three basic rights: Right to refuse unsafe work. Right to participate in the workplace health and safety activities through the Health and Safety Committee (HSC) or as a worker health and safety representative.

What are the 5 fair reasons for dismissal?

5 Fair Reasons for Dismissal

  Conduct/Misconduct. Minor issues of conduct/misconduct such as poor timekeeping can usually be handled by speaking informally to the employee.

 Capability/Performance. ...

 Redundancy. ...

 Statutory illegality or breach of a statutory restriction. ...

 Some Other Substantial Reason (SOSR)

What are the different types of dismissal? Types of dismissal

 Fair dismissal.

 Voluntary redundancy.

 Unfair dismissal.

 Constructive dismissal.

Wrongful dismissal. Is Dismissed same as fired?

Dismissal (also referred to as firing or sacking) is the termination of employment by an employer against the will of the employee. ... To be dismissed, as opposed to quitting voluntarily (or being laid off), is often perceived as being the employee's fault.

Can you get fired without a written warning?

In some situations, employees can be fired without warning, and in others, they cannot. Whether an employee can be legally terminated without warning will mainly depend on the type of employment contract he's under. ... In addition, employers also need a valid reason for termination to avoid wrongful termination lawsuits.

What are grounds for immediate termination?

Reasons an Employee Is Terminated for Cause

 Violation of the company code of conduct or ethics policy.

 Failure to follow company policy.

 Breach of contract.

 Violence or threatened violence.

 Threats or threatening behavior.

 Stealing company money or property.

 Lying.

 Falsifying records.

What are valid reasons for termination?

Here are 20 acceptable reasons to terminate a staff member's contract to avoid damaging your client relationships, office morale, and your business's bottom line:

 Unethical Conduct. ...

 Damaging Company Property. ...

 Drug or Alcohol Possession at Work.

 Falsifying Company Records. ...

 Disobedience. ...

 Misconduct. ...

 Poor Performance. ...

 Theft.

 Using Copany Property for personnel Business

 Too many Absences

 Violating Company Policy

 Bad Culture Fit

 Fait to Commit

 Lack of Enthusiasm

 Dishonesty

 Persistent Negativity

 In consistent

 Falling Behind

 Lying on the CV

 Chatterbox

What are the laws that protect employees?

Below are some of the key federal protections offered to employees.

 The Minimum Wage.

 Workplace Safety. ...

 Health Coverage. ...

 Social Security. ...

 Whistle-blower Protections. ....

 Employment-Based Discrimination.

IF YOU FACED ANY PROBLEM IN YOUR WORKING ENVIROMENT WHILE WORKING IN MALAYSIA DUE TO EMPLOYERS IGNORANCE OR OTHER MATTERS REGARDING EMPLOYMENT IN YOUR COMPANY, YOU CAN CONTACT THE NEAREST LABOUR DEPARTMENT OR YOUR RECRUITMENT CONSULTANT FOR FURTHER ADVICE.

Jabatan Tenaga Kerja Semenanjung Malaysia Aras 5, Blok D3, Kompleks D, Pusat Pentadbiran Kerajaan Persekutuan, 62530, Putrajaya, Malaysia Telefon : 603-8000 8000