The Employment Act, 1955, Malaysia is the core legislation
approved for the welfare and all relevant aspects of employee in Malaysia. Employment
laws in Malaysia provides standard conditions for specific types of employees working
in this nation. These are applicable for native labors who are actively serving
various businesses in this country. Following are the employee criteria on
which employment Act is valid:
Any active labor whose monthly wages is less
than RM2000.
Workers deployed in manual works which typically
include, passenger transport operator, Manual labor, supervisors of manual labors,
apprentice, employed on container vessels, domestic servants are specifically
focused under this acting law.
This Act is implacable on above mentioned employees even if their monthly wages is equal or more than RM2000. The foreign labor and other employees who doesn’t fit into the categories mentioned above are however, excluded from the EPF and SOCSO coverage.
This article is designed to portray the employment laws of
Malaysia and how it benefits employees here. So from here forward we will see
various aspects of legal advantages that have been implemented for the benefits
of these specific labor criteria.
Benefits of labor laws in Malaysia
The Labor law 1955 made work life much easier for the
working capitals in Malaysia. The Act put up several rules for the employers
and owners and made it compulsory to abide. For instance, the legislative laws have
been approved for the benefits of various aspects beneficial for labors here.
For instance, female employee benefits during their maternity period, paid
leaves, sick leaves, yearly benefits and overtime compensations.
Let’s have a look on what these employee laws of Malaysia
offers to different labor scenarios in Malaysia:
Employee leaves:
Duration of maternity leave a female worker can enjoy 60 days of paid leave
Working hours should not extend more than 8 hours per day. The total working hours per week should not exceed 48 hours.
The yearly paid leaves for employees depend on the years
he/she have served in a company. As the year served increases the leave
allowance also increases up to a certain limit. The table below shows the
minimum leave days per year for employees approved by the employment laws in
Malaysia:
Duration of service in the company
Minimum leave days / year
2 years
or less
8 days
2 years
– less than 5 years
12 days
5 years
or more
16 days
Sometime employees take leaves for various health issues.
Labor law has been implemented regarding this issue as well to mitigate
employee-company complexities. The table
below shows the minimum paid leave days for employees during any unfortunate
health issues:
Years of employee’s company service
Minimum paid Sick leave days
Less
than 2 years
14 days
2
years- less than 5 years
18 days
5 years
and more
22 days
In case
of emergency or hospitalizations
Up to
60 days
The
employment law took an account of the employees who are subjected for
overtime work. Here how it goes to the overtime work payments for Malaysian
labors:
Overtime period
Payment rate
During
regular working days
1.5
times the hourly rate of regular payment
During
off days
2 times
the hourly rate of regular payment
During
public holidays
3 times
the hourly rate of regular payment
Various labor Acts under employment laws in Malaysia
Act 1994 - Occupational safety, health and hazard
This Act secures the law in favor of employee health
and safety. It is by far one of the most important Acts as far as the welfare
of all Malaysian working labor force is concerned. Law under this Act confirms
protection against risk measures and hazardous environments in work spaces that
risks labor’s health.
Section 15 under health Act 1994 highlighted the
duties of an employer. This is to ensure proper maintenance of the industrial
plants and its related machineries and systems to mitigate any unfortunate
causalities and health issues of employees working in the plants.
Act 1994, Section 16 demanded any employer to
plan and equip safety and health policies at the workplace. This Act also suggests
regular practice and revise of the implemented policies to retrieve the best
results out of it for the wellbeing of employees in the company.
Act 1966 - Under-age and child labor
The employment laws in Malaysia clearly prohibited child
labor. Especially in the environment compromised to poisonous substance and
hazardous elements. Under this Act following rules has been set for the wellbeing
of child and under-age individuals in Malaysia:
No child under the age of 15 or in between the
age range of 15 to below 18 need to be engaged in any sort of labor force or
employment. However, under permission and supervision an individual can work
not more than 6 days a week.
In case of child employee, the work hour must
not be more than 6 hours in a day. In case the age limit it 15-18, the work
hour is 7 hours per day.
Factories and Machinery Act 1967 prohibits the
engagements of child labors in the factory environment or handle factory
machineries and electronics.
All employees Act including the Occupational
Safety and Health Act 1994, the Electricity Supply Act 1990 or Mining industries
strictly prohibit child or under age labor in Malaysia.
Act 2012 - Employee Retirement
Employment Act of Malaysia has enlisted several rules in
favor for senior employees who have served their companies for years or at the
verge of their working carrier. The retirement phase of employment falls under
the Act 2012. Following are the benefits for this specific type of individuals
in Malaysia:
According to the Act 2012, the minimum retirement age has been stretched from 55 to 60. This is applicable for both civil servants as well as the private sector employees in this country.
If an employee, however choose to take the retirement status before his/her tenure period, they can do so without any obligations from the company or employment laws in Malaysia.
Any employer found forcing his/her employee to take forceful retirement before the worker’s prior age is subjected to be guilty and has to pay a fine of RM10000.
An employer depriving a retiree from these after service facilities is considered guilty and is subjected to pay fines if accusation is confirmed.
Act 1968 - Foreign employment restrictions
The law is consolidated for a foreign employee who is
legally enlisted in the company in Malaysia. For this, such employee category
must possess sufficient paperwork both from foreign ministry, as well as
employee organization who are hiring that particular individual. Following are
two criteria that have been ruled under Act 1968, restrictions for foreign
employees:
A valid work permit, proper passport and employer credentials and approvals are required before he/she can be hired locally in Malaysia.
The immigration Act 1966 strictly prohibited the illegal work permits in this nation. Found to do so will result penalties and considered federal crime according to the labor act of Malaysia.
Conducting unethical or illegal activities in work place results severe legal actions, such as job termination, imprisonment and even deportation as per foreign employment Act.
Wages Order 2018 - Minimum employee wages in Malaysia
The order of minimum Wages was first implemented on 1 January’13.
The revised version of the employee wages have been introduced at the end part
of November’18, under the employment laws in Malaysia. This order has been
enlisted in an Act which is known as The Minimum Wages Order 2018 or P.U (A)
265/2018. Under this order following rules have been stated:
The order clearly stated that the minimum
monthly wage has to be no less than RM1100, whereas, minimum hourly wage has to
be RM5.29.
In case the wages are counted on a daily basis,
RM42.31 must be paid per day for 6 days a week employment. Rm50.70 must be paid
per day for 5 days a week employment and RM63.45 must be paid per day for 4
days a week employment.
All labors who have enlisted themselves under
legal contract of the company to provide service are entitled to this category
to receive the minimum wages.
House servants which include maids, guards,
cooks, personal drivers, and apprentices etc. must undergo proper for minimum 2
years to be eligible for minimum wages coverage.
