Wednesday, April 25, 2012

Know your rights: Malaysia Employment Act 1955

Whether you are employer or employee in Malaysia, the Employment Act 1955 is a very important act related to your employment.

Below is a summary of some of the important points in that act:

  • The Malaysia Employment Act 1995 is applied to Peninsular Malaysia and Labuan only. For Sabah and Sarawak, they are governed by their respective Labour Ordinance.
  • Either party to a contract of service may at any time give a termination notice in writing, and the notice period shall not less than:
    • 4 weeks for employment less than 2 years
    • 6 weeks for employment between 2 to 5 years
    • 8 weeks for employment more than 5 year
  • The notice period above is minimum requirement, which can be longer in the actual employment contract, and is important for short notice compensation serving, especially when Voluntary Separation, Retrenchment, Early Termination, etc. occur.
  • Termination without notice nor compensation can happen in the event of any wilful breach by the other party of the employment contract.
  • Employer may dismiss, downgrade or suspend up to 2 weeks after due inquiry to the employee, on the grounds of misconduct or inconsistent in fulfilment of service.
  • Employee may terminate without notice when threaten by danger, voilence or disease.
  • Contract is deemed broken by employer if he fails to pay wages not later than the 7th day after the wage period.
  • Contract is deemed broken by employee if he has been continuously absent from work for more than 2 consecutive working days without prior leave from his employer, unless he has a reasonable excuse for such absence and has informed or attempted to inform his employer of such excuse prior to or at the earliest opportunity during such absence.
  • Wages is not payable during the period when employee is imprisoned or attending to a court otherwise than as a witness on his employer's behalf.
  • No deduction of wages can be made by employer other than:
    • Deductions to the extent of any overpayment of wages made within 3 months of the mistake.
    • Deductions for the indemnity due to the employer by the employee.
    • Deductions for the recovery of advances of wages.
    • Deductions authorized by written law, such as EPF, SOCSO, PCB, etc.
    • Deductions upon employee's written request, in respect of the payments to a registered trade union or co-operative thrift and loan society of any sum of money due to the trade union or society by the employee on account of entrance fees, subscriptions, instalments and interest on loans, or other dues.
    • Deductions upon employee's written request, in respect of payments for any ESOS shares.
    • Deductions upon employee's written request, in respect of payments to a third party on behalf of the employee.
    • Deductions upon employee's written request, in respect of payments for the purchase by the employee of any goods of the employer's business offered for sale by the employer.
    • Deductions in respect of the rental for accommodation and the cost of services, food and meals provided by the employer to the employee 'at the employee's request or under the terms of the employee's contract of service.
  • The total deduction shall not exceed 50% of the employee's monthly wages, unless for:
    • Indemnity payable by an employer to an employee
    • Final payment of the wages of an employee for any amount due to the employer and remaining unpaid by the employee on the termination of the employee's contract of service
    • Repayment of a housing loan (where an additional limit of 25% applied)
  • All wages must be paid in legal tender or direct into bank account.
  • Employer shall not require any female employee to work in any industrial or agricultural undertaking between 10pm and 5am nor commence work for the day without having had a period of 11 consecutive hours free from such work.
  • No female employee shall be employed in any underground working.
  • Every female employee shall be entitled to maternity leave for a period of not less than 60 consecutive days in respect of each confinement.
  • Maternity leave shall not commence earlier than a period of 30 days immediately preceding the confinement of a female employee or later than the day immediately following her confinement.
  • A female employee shall be entitled to receive maternity allowance if she:
    • Has been employed more than 4 months before confinement.
    • Is employed more than 90 days during the 9 months immediately before her confinement.
  • If a female employee dies from any cause during the maternity leave period, her maternity allowance shall be paid to her nominee.
  • The employer cannot terminate a female employee who remains absent from her work after the expiration of the maternity leave as a result of illness related to pregnancy or confinement and certified by a registered medical practitioner, until her absence exceeds a period of 90 days after the maternity leave.
  • Every employee shall be allowed in each week a rest day of 1 whole day.
  • Employee who required to work during his rest day should be double paid.
  • An employee shall not be required under his contract of service to work:
    • more than 5 consecutive hours without a period of leisure of not less than 30 minutes
    • more than 8 hours in one day
    • in excess of a spread over period of 10 hours in one day
    • more than 48 hours in one week
  • For any overtime work carried out in excess of the normal hours of work, the employee shall be paid at a rate not less than 1.5 times his hourly rate of pay.
  • Every employee shall be entitled to a paid holiday at his ordinary rate of pay on 10 gazetted public holidays in any one calendar year, including:
    • the National Day
    • the Birthday of the Yang di-Pertuan Agong
    • the Birthday of the Ruler or the Yang di-Pertua Negeri
    • the Workers' Day
  • Employee who required to work on paid holiday shall be double paid.
  • Employee who required to work overtime on paid holiday shall be triple paid.
  • An employee shall be entitled to paid annual leave of:
    • 8 days for every 12 months of continuous service with the same employer if he has been employed by that employer for a period of less than 2 years
    • 12 days for every 12 months of continuous service with the same employer if he has been employed by that employer for a period of 2 to 5 years
    • 16 days for every 12 months of continuous service with the same employer if he has been employed by that employer for a period of 5 years or more
  • An employee shall, after examination by registered medical practitioner at the expense of the employer, be entitled to paid sick leave:
    • where no hospitalisation is necessary:
      • 14 days in the aggregate in each calendar year if the employee has been employed for less than 2 years
      • 18 days in the aggregate in each calendar year if the employee has been employed between 2 to 5 years
      • 22 days in the aggregate in each calendar year if the employee has been employed for 5 years and above
    • 60 days in the aggregate in each calendar year if hospitalisation is necessary, as may be certified by such registered medical practitioner or medical officer
    • An employee shall also be entitled to paid sick leave after examination by a dental surgeon as defined in the Dental Act 1971
  • An employee who absents himself on sick leave shall be deemed to absent himself from work without permission if he is:
    • not certified by a registered medical practitioner or a medical officer or a dental surgeon
    • certified by such registered medical practitioner or medical officer or dental surgeon but without informing or attempting to inform his employer of such sick leave within 48 hours of the commencement thereof


Click here to read the full Malaysia Employment Act 1955.

40 comments:

keith lee said... Reply To This Comment

Hi, i would like to ask is there any labor law to protect intern student. Is it against the law if intern student work from 8am until 7pm++???

Seeking justice said... Reply To This Comment

Hi! I work 6 hours on Saturdays and 2 hours Thursday evenings in a new language centre. I have given 2 weeks' notice; I have been there for more than 2 months. However, my employer told me not to go in to work anymore on Saturdays. I was told that she still has to pay me for the 2 Saturdays' notice. Please confirm. Thank you.

Sarah Chan said... Reply To This Comment

Hi, my company is deducting my salary for sick leave, even with a medical certificate but paying the medical fees. The reason being is I'm still on probation. Is this even legal?

Voyager8 said... Reply To This Comment

@Sarah Chan

I think you can write or call to MOHR for their advice.

Click the link below:
http://www.mohr.gov.my/index.php/en/feedback-complaints/enquiries-complaints

angel Lum said... Reply To This Comment

Hi, such as my case. Saturday is a working day for me. I went to a dental clinic for my wisdom teeth. Managed to extract the teeth. Can i apply dental m.c. for my case ?

Voyager8 said... Reply To This Comment

Before you go, you should inform your manager and get permission to leave from work.

You can ask your manager whether you can leave for a while to visit dentist near your office and then get back to work, which is off the record and no need to take leave, or you need to apply for leave officially.

You can get your answer from your manager or HR.

Unknown said... Reply To This Comment

Hi If I tender in my resignation on the 18 of September, when is my last day of work ? I worked for a year now in this company and I have no more annual leave.

Voyager8 said... Reply To This Comment

@Unknown

You can refer to your appointment letter for your required notice period.

Premmah said... Reply To This Comment

Hi, im hospitalized for about 40days due to pregnancy. I have submitted the letter of admission to hospital to my company HR. They have emailed me saying that I'm not entitled for hospitalizatian leave because its due to pregnacy. Could you please advise.

Voyager8 said... Reply To This Comment

@Premmah

I think you can write or call to MOHR for their advice.

Click the link below:
http://www.mohr.gov.my/index.php/en/feedback-complaints/enquiries-complaints

Vala D.Jackson said... Reply To This Comment

Hello , i curious that if a permanent employee were working for 14 days and decides to quit due to certain problems , will the employee entitled to the 14 days salary ?

Voyager8 said... Reply To This Comment

@Vala D.Jackson

You will need to deduct it with any notice period you are required to serve.

pei yun tan said... Reply To This Comment

Hi. I started work at August 2015, probation 6 months and sign a contract 1yrs. After working 4-5 months,my job is not what I suppose to do as my title of position. I submitted my resignation letter @ email MD @ HR. HOWEVER they told me that in contract no state that "employee have right to give 2 months terminate notice. And ask me pay compensation for next 6 months. Is it illegal to ask my compensation? In contract there are not state. The term of contract r " the term of contract will be for a period of 1 yrs,commencing 5th August 2016. Any extension of the contract shall be of the discretion of the company". They din writen further action or consequences and compensation they will take if employees insist to resign.
If my company write out compensation letter for 6 months salary is it illegal and what should I do?
Thank you.

Voyager8 said... Reply To This Comment

@pei yun tan

If there is no notice period written in your contract of service, then your notice period is 4 weeks as you worked with them less than 2 years.

However, under Malaysia Employment Act 1955, it also states that "Either party to a contract of service may terminate such contract of service without notice in the event of any wilful breach by the other party of a condition of the contract of service."

So, if you can prove that what they asked you to do is not what as described in your contract of service, you have chance to terminate without serving any notice period.

I think you can write or call to MOHR for their advice.

Click the link below:
http://www.mohr.gov.my/index.php/en/feedback-complaints/enquiries-complaints

pei yun tan said... Reply To This Comment

Tq so much. In the contract also write that" employer have right to give 2 termination notice" so my company argue that only they can give termination notice, me have no right to give them( in contract no state "either party", only XXX company give termination notice...") Is it reasonable for them to say that? I realize this is unfair for me and blame myself din read carefully.

Voyager8 said... Reply To This Comment

@pei yun tan

Have you written to MOHR?

pei yun tan said... Reply To This Comment

I call but no one pick up the phone.

Hema Malini said... Reply To This Comment

Hi , me n my sister working in same office and same department. After two days unpaid leave (already informed )we joined work back, my boss ask us to resign on the spot and ask us to go back and said will banking your two weeks salary soon without any notice... What should we do ? We joined july15 and we haven't confirm yet..

jazz10q said... Reply To This Comment

Hi, my company wants to terminate a confirmed staff who has been worked for 1 full year. The company needs to give her 1 month notice + 10days pay. Am i right? Kindly advise.
Thanks

Voyager8 said... Reply To This Comment

@Hema Malini

I think you can write or call to MOHR for their advice.

Voyager8 said... Reply To This Comment

@jazz10q

You can get advice from your legal adviser. He will tell you what to do and how to write the termination letter in the way that is unchallengeable.


Unknown said... Reply To This Comment

Hi. Does hospitalization leave include weekends?

Voyager8 said... Reply To This Comment

@Unknown

Leave is for working days. You don't need to apply leave in non-working days.

Unknown said... Reply To This Comment

That's what I thought. So, if an employee was given 3 months (October-December) bed rest by a doctor, the 60 days hospitalization leave should cover for almost all of the 3 months, correct? (considering in each month, the number of working day is approximately 22 days). Would it be inappropriate if an employer said the hospitalization leave also includes weekends which means it only covers October and November and for the third month the employee has to use his annual leave?

Voyager8 said... Reply To This Comment

@Unknown

The doctor must specify hospitalization then only can get hospitalization leave. For normal MC you can only get medical leave.

You can challenge your employer by bringing the case to labour office about the calculation.

Ashi said... Reply To This Comment

Hi,
I would like to clarify about no pay leave. I work with this Co for almost a year. I was advised by HR to applied for unpaid leave due to my earned leave insufficient to cover my total leave. I took leave for eg: 10/2/16 - 15/2/16. 10 & 11 (AL) and 12 & 15 (Unpaid). Later on, i received a letter from HR stating that they will deduct for 4 days pay (12/2 - 15/2/16). 13 & 14/02 was non working day. Is it lawful?

Mages Waran said... Reply To This Comment

I am working in a logistics firm and was appointed as an operation clerk with a basic salary of RM1000 and allowance of RM200. After 5 years of service i took my heavy driving licence. My manager knew about it and asked me to do driving and i obeyed but delayed giving any offer letter and paid lesser than driver's entitlement. Now he has changed me to office admin work. I objected my transfer by writting to him but he cannot do anything about it because his position is also changed! There were no memo from my company on this changes. What should i do as my income now is much lesser than when i was a driver!

Michael Tan said... Reply To This Comment

Hi, i would like to ask for two things:
1. Is it lawful for a company to deduct communication allowance less than 2 weeks of notification? Is allowance counted as wages?
2. Im working as a design architect (position), but i am not entitled to get overtime payment. I was told it is because of the position i have in the company and the nature of work as an architect which requires more time to finish a task (not only me but in general). Is there any law stated as such?

Your respond would be much appreciated,

Thank you

malini sebastian said... Reply To This Comment

If im in internship 6 month today is my first day n tmoro they terminate me coz they said im inform the senior i can work for st 2 months for mon to tues coz i have finish my mqa studies so after 2month i will back as normal off hours unfortunely i already inform the interview person an ealier time when she interview n now she said no i didnt but she said i inform on saturday but saturday they not working.
Ie but they off saturday then y i want to ask for permission
My understand is internship have period of learn so after complete they choice whether they want me to continue or not rite. But now they terminate me without any quiry both side they listen wat my senior said

Nasir said... Reply To This Comment

Good evening,
Appreciate your clarification if the 60 days/year HOSPITALIZATION leave entitlement includes or excludes off/rest days and Public Holidays. My employer says it includes them so its 60 calander days as opposed to 60 days absent from work.

Eric said... Reply To This Comment

Hi

Am I still eligible for taking mc while serving resignation notice period?

Yuganeswari Kummaran said... Reply To This Comment

Hi there,
I want to know my right as an intern. At my workplace they give me lots of work since first day and since the office located in fourth floor and there is no elevator service i have been told to get down and collect the documents for few times not only that but also with lots of workloads. But still I take it that it is learning process but not until they ask me to throw rubbish and they claim it as it is part of admin job.I don't have any idea what to do.

Voyager8 said... Reply To This Comment

@Ashi

In normal practice, your accumulated annual leave in the year will be prorated until the month.

For example, if you are entitled for 12 days AL, in January your AL is 1 day, in February your AL accumulated to 2 days, in March accumulated to 3 days, and you will get the full 12 days entitlement by December.

Voyager8 said... Reply To This Comment

@Mages Waran

I think you can write or call to MOHR for their advice.

Click the link below:
http://www.mohr.gov.my/index.php/en/feedback-complaints/enquiries-complaints

Voyager8 said... Reply To This Comment

@Michael Tan

You need to refer to your job appointment/offer letter.

Voyager8 said... Reply To This Comment

@malini sebastian

Suggest you to speak to the student couselling department of your college.

Voyager8 said... Reply To This Comment

@Eric


You should take MC if you are sick and not fit to work.

Voyager8 said... Reply To This Comment

@Nasir


Depends on your company's policy. Most are refering to 60 calendar days.

Voyager8 said... Reply To This Comment

@Yuganeswari Kummaran

You have right to say "no" to out of scope duty.

You can get advice from student counselling department of your college.

Unknown said... Reply To This Comment

Hi,

I am currently working in Sarawak and my company has a penalty for tardiness but the deduction comes from my allowance for food. Is it still legal within the Sarawak labour act?

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