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

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 1^st 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.