(1) Employment Act & Related Act - DAY 1

8/10/2019 (1) Employment Act & Related Act - DAY 1

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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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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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Malaysian Industrial Relations &Employment Law

15

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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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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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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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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Malaysian Industrial Relations &

Employment Law

31

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


More than 5 years of

service

20 days wages for



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Employment Law

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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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(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.


Employment Law

33


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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 &

Employment Law

34


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Employment Law

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(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

Documents

(1) Employment Act & Related Act - DAY 1