Employment laws play a crucial role in ensuring fair and equitable treatment of employees in any country. In Malaysia, the Malaysia Employment act governs employment relationships and sets minimum standards for employment practices. This comprehensive guide will give you an overview of the Employment Act and its key provisions, as well as how it impacts employers and employees in Malaysia.

The Employment Act, 1955 (EA) is Malaysia’s principal legislation that governs the employer-employee relationship in the private sector. The Act lays down the minimum standards of employment, protects employees’ rights, and ensures that employers adhere to the labor laws of Malaysia.

In Malaysia, there is a need for comprehensive labor laws to protect the rights of employees and ensure a fair working environment. The Employment Act has played an essential role in regulating the employer-employee relationship in Malaysia. This article aims to provide a comprehensive guide to the Employment Act and its key provisions.

What is the Malaysia Employment act?

The Employment Act is a piece of legislation that governs the employer-employee relationship in the private sector in Malaysia. The Act applies to all employees in the private sector, regardless of their salary, except for domestic workers and certain categories of employees, such as managers and executives.

The Employment Act outlines the minimum standards of employment and working conditions, including minimum wage, working hours, and rest days. It also establishes the rights and responsibilities of employees and employers and provides a mechanism for resolving employment disputes.

Key Provisions of the Employment Act

Minimum Wage The Employment Act stipulates that every employee must be paid a minimum wage. The minimum wage is determined by the Minimum Wages Order and is subject to periodic review. The current minimum wage in Malaysia is RM1,200 per month in Peninsular Malaysia and RM1,100 per month in Sabah, Sarawak, and Labuan.

Working Hours The Employment Act sets the maximum number of working hours at eight hours per day or 48 hours per week. However, for employees engaged in work that is dangerous or unhealthy, the maximum number of working hours is reduced to six hours per day or 36 hours per week.

Rest Days Employers are required to grant employees at least one rest day per week. Employees who work on rest days are entitled to additional pay or a replacement rest day.

Annual Leave Employees are entitled to paid annual leave, which varies depending on their length of service. Employees who have served for less than two years are entitled to eight days of annual leave, while those who have served for two years or more are entitled to 10 days of annual leave.

Sick Leave Employees are entitled to paid sick leave of up to 14 days per year. However, if an employee is hospitalized, the sick leave entitlement is extended to 60 days per year.

How the Employment Act Impacts Employers and Employees in Malaysia

The Malaysia Employment act sets out the minimum standards that employers must adhere to in the treatment of their employees. Failure to comply with the Act can result in penalties, fines, or legal action. For employees, the Employment Act provides protection against unfair treatment, such as unjust dismissal or discrimination.

Employers are required to ensure that their employees receive fair treatment and adhere to the minimum standards set out in the Act. Employers must provide their employees with a contract of service, pay their employees the minimum wage, and comply with the maximum working hours and rest day requirements.

For employees, the Employment Act provides protection against unfair treatment, such as unjust dismissal or discrimination. If an employer violates the Act, employees have the right to file a complaint with the Department of Labour or take legal action. More information