UNDERSTANDING LEGISLATIONS ON EMPLOYMENT LAW
INTRODUCTION TO EMPLOYMENT LAW
There are
various legislations to cover employment law.
Laws
providing for basic benefits:
•
Employment
Act 1955
• Sabah Labour Ordinance
• Sarawak Labour Ordinance
• Children and young persons (Employment Act) 1966
• Sabah Labour Ordinance
• Sarawak Labour Ordinance
• Children and young persons (Employment Act) 1966
Law
Establishing the Industrial Relation Framework
•
Trade
Unions Act 1959
•
Industrial
Relations Act 1967
•
Public
Service Tribunal Act
Social
Security Laws
•
Employees
Provident Fund Act 1991
•
Workman’s
Compensation Act 1952
•
Employees
Social Security Act 1969
Safety laws
•
Occupational
Safety and Health Act 1994
•
Factories
and Machinery Act 1967
Law
restricting employers from hiring foreign workers
•
Immigration
Act 1963
•
Employment
(Restrictions) Act 1968
Law relating
to training
•
Pembangunan
Sumber Manusia Bhd Act 2001
•
Skills
Development Fund Act 2004
•
National
Skills Development Act 2006
1. 1 SCOPE AND APPLICATION OF EA 1955
The Employment Act 1955 is applicable in West Malaysia only. Sabah Labour
Ordinance covers Sabah and Sarawak Labour Ordinance covers Sarawak. The
contents of the three pieces of legislation are now identical, although the
order of the various provisions varies.
EA is a statute of labour law that governs many aspects of the
relationship between employer and employee. It is applicable to those employers
or employees who fall within the definitions of the EA. An employer is any
person who enters into a contract of service to employ any other person as an
employee (includes the agent, manager or factor of such person).
Among others, EA sought to:
• defines the contract of service and the manner of
termination
• sets the minimum terms and conditions of employment
• prescribe the course of action for employer and
employee in times of disputes
• regulates payment of wages and deduction
• provide mechanism for enforcement of the provisions
1.2 COVERAGE OF THE ACT
There are different categories and extent of protection as provided by
the EA 1955, i.e.:-
A. Full Protection (First Schedule - Sec 2(1))
•
any employee whose wages
does not exceed RM 2000 per month (from the previous RM 1500, with
effect from 1st April 2012)
•
any employee who is engaged in manual labour
irrespective of the amount of wages
•
any employee engaged in operating or maintaining any
mechanically propelled vehicle operated for transport of passenger or goods/
for reward / for commercial purposes
•
the direct supervisor of any manual labour, regardless
of amount of wages
•
any employee who is employed in any vessel registered
in Malaysia, who is not a duly certified officer, regardless of amount of wages
earned.
B. Partial Protection
a) Domestic servant,
regardless the amount of wages earned are NOT covered by
• Sec 12 - entitlement to minimum notice for termination of service
• Sec 14 - domestic inquiry and disciplinary action
• Sec 16 -entitlement to minimum days of work
• Sec 64 -
• Part IX - entitlement to maternity benefits
• Part XII - entitlement to minimum benefits and
payment
• Part XIIA - entitlement to Termination and Layoff
benefits
b) Any employee who earns
more than RM2000 but up to RM 5000 - not
entitled to any benefits provided by the EA but by SEC 69B is entitled to seek
the intervention of the Labour Office to enforce the terms and conditions of
employment of his contract of service.
UNDERSTANDING LEGISLATIONS ON EMPLOYMENT LAW
Reviewed by Kamaruddin Mahmood
on
2:01:00 PG
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