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 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 UNDERSTANDING LEGISLATIONS ON EMPLOYMENT LAW Reviewed by Kamaruddin Mahmood on 2:01:00 PG Rating: 5

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