EMPLOYMENT ACT, 1955
The primary legislation governing labor affairs in Malaysia is the Employment Act of 1955.
This act outlines basic terms and conditions, primarily related to monetary aspects, for specific groups of workers:
Any employee earning a monthly wage below RM2000.00.
Employees engaged in manual labor, which encompasses artisans, apprentices, transport operators, supervisors or overseers of manual laborers, individuals employed on vessels, and even domestic workers, regardless of whether their monthly wages exceed RM2000.00.
Paid annual leave for employees:
*Minimum paid annual leave to be provided for employees
Paid sick leave per calendar year:
Payment for overtime work: |
Children and Young Persons (Employment) Act 1966
The act forbids children from being employed in close proximity to dangerous or toxic substances.
Children under the age of 15 and young persons between 15 and under 18 years old who are employed are restricted from working more than 6 days within any consecutive 7-day period.
Children are only permitted to work a maximum of 6 hours per day, while young persons are allowed to work for a maximum of 7 hours per day.
Children or young persons are not allowed to be employed in any job that goes against the regulations set forth in the Factories and Machinery Act of 1967, the Occupational Safety and Health Act of 1994, or the Electricity Supply Act of 1990. Additionally, they cannot be employed in any work that involves underground tasks.
Employment (Restriction) Act 1968
Non-Malaysian citizens must acquire a valid work permit prior to being employed within the country.
Employment without a valid work permit is considered illegal according to the Immigration Act of 1966.
Occupational Safety and Health Act 1994
This legislation establishes a framework aimed at ensuring the safety, health, and welfare of all Malaysian workers and safeguarding others from risks associated with work activities.
Section 15 outlines employer responsibilities, including maintaining safe plant and systems, providing information, instruction, training, and supervision to ensure workplace safety and health.
Section 16 mandates employers to formulate workplace safety and health policies and regularly update them to reflect changes and best practices in the business environment.
The Safety and Health Policy serves to illustrate the company’s dedication to ensuring safety and health in the workplace, with all relevant safety and health issues addressed in the policy.
Factories and Machinery Act 1967
Provides health and safety protection for all factory workers, irrespective of gender.
The act’s jurisdiction extends to all factories.
Minimum Wages Order 2018
The Minimum Wages Order was initially enforced on January 1, 2013, with the most recent revision occurring on November 28, 2018.
Minimum wages refer solely to basic wages, excluding any allowances or additional payments.
Both local and foreign employees under a contract of service with an employer are entitled to receive minimum wages.
The Minimum Wages Policy extends to employees compensated through piece-rates, tonnage, task, trip, or commission.
Domestic servants (e.g., maids, cooks, guards, gardeners, and personal drivers) and apprentices undergoing a training period of no less than two years are exempt from minimum wage coverage.
Minimum Retirement Age Act 2012
The minimum retirement age for both civil servants and private sector employees in Malaysia has been raised from 55 to 60.
Employees are not prohibited from opting for early retirement if their contract of service or collective agreement allows for it.
Any employer found guilty of compelling an employee to retire before reaching the age of 60 will face a fine of 10,000 ringgits under the new law.
However, employees are still permitted to retire earlier than age 60 if their contract of service or collective agreement permits such a decision.
Related links:
Human Resources Payroll Services
Statutory Payroll Contributions
Employment Of Expatriates In Malaysia
