Malaysia employment act handbook




















Certain other deductions can only be made if the EA Employee requests in writing and prior permission from the Director General of Labour is obtained. For Non EA Employees, the normal rules of contract shall apply, so deductions can be made upon mutual agreement, provided it does not contravene any law or statute. For more information about probationers, read our previous article here. Annual leave can be pro-rated if an employee has worked less than a full year in that particular calendar year.

You can also read our previous article about annual leave here. Where hospitalization is required, EA employees are entitled to 60 days of hospitalization leave per year, provided that the number of sick leave and hospitalization leave pear year shall not exceed 60 days in total. For more information about sick leave, read our previous article here. For employees paid on a monthly basis, overtime entitlements under the Employment Act are as follows:.

For example, an employee who works 8 hours a day for a monthly salary of RM1, If that employee was asked to work on a public holiday during his normal working hours, his overtime payment for that day would be RM RM50 x 2. How are public holidays handled? Can an employer choose which public holidays to observe? EA employees are entitled to a minimum of 11 public holidays per calendar year, 5 of which must be:. The other 6 holidays can be chosen by the employer from the list of gazetted public holidays.

However, the employer must exhibit conspicuously at the workplace which six gazetted public holidays are being observed. Where a public holiday that falls on a rest day typically Sunday , the next working day shall be a holiday in substitution. Are employers required by law to observe them? There have been instances where the government has declared a public holiday without much notice to the public.

The Employment Act provides that employers must also observe any public holiday declared under the Holidays Act Part-time work is classed as being employed for less than 70 percent of the time of a full-time employee in a similar job. Casual workers, who are hired only when needed, are not covered by the Employment Act. Anybody employed in Malaysia for longer than one month must have a written employment contract or "contract of service", which should include:.

A written employment contract should be received before starting work. An oral agreement is sufficient for employment lasting less than a month. Length of notice should be stated in writing in the contract of service. This is usually done when he tenders his resignation. However, it is not easy for the employer to use the clause. It is because of the existence of another provision in a statute, i. Section 20 of IRA states that where a workman considers that he was dismissed without just cause or excuse, he may bring a legal action against his former employer to be reinstated in his former employment.

Therefore, if an employer uses the clause and says that it was merely following what was stated as per the clause, the employee can bring a legal action against the employer for unfair dismissal. Unlike other civil cases where a person who sues must prove his case or criminal cases where the prosecution must prove that the accused is guilty of the offence , in industrial law, the employer has the burden of proving that the employee was dismissed with just cause or excuse.

The employee only needs to show that he was in employment with the employer together with the circumstances leading up to the dismissal. If the employer only wishes to rely on the clause, there is a very high probability that the court will rule dismissal to be without just cause or excuse. Mere reliance on the clause is NOT sufficient. If the employer is attempting to justify the just cause or excuse by adducing evidence, the court will scrutinise the evidence.



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