Malaysian Labour Law

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❖ First Schedule Section 2(1) EA 1955-

1] any person, irrespective of his occupation, who has entered into a contract of service with an employer under which such person’s wages do not exceed RM 1500 per month

2] any person who irrespective of the amount of wages he earns in a month, has entered into a contract of service with an employer in pursuant of which :-

(a) he is engaged in manual labour including such labour as an artisan or apprentice: provided that where a person is employed by one employer partly in manual labour and partly in some other capacity, such person shall not be deemed to be performing manual labour unless the time during which he is required to perform manual labour in anyone wage period exceeds one-half of the total time during which he is required to work in such wage period .

(b) he is engaged in the operation or maintenance of any mechanically propelled vehicle operated for the transport of passengers or goods or for reward or for commercial purposes.

(c) he supervises or oversees other employees engaged in manual labour employed by the same employer in and throughout the performance of their work.

(d) he is engaged in any capacity in any vessel registered in Malaysia and who:- I] is not an officer certificated under the Merchant Shipping Act of the United Kingdom as amended from time to time; Ii] is not the holder of a local certificate as defined in Part VII of the Merchant Shipping Ordinance 1952; or Iii] has not entered into an agreement under Part III of the Merchant Shipping Ordinance, 1952; or

(e) he is engaged as a domestic servant

❖ A new section ( section 69B ) provides protection for employees whose monthly wages exceed RM 1500.00 but do not exceed RM15,000 the Director- General of Labour is now empowered to hear complaints under section 69( 1 ) (a ) from this category of employees. However, section 69B ( 3 ) stipulates that the rest of the provision of the Act do not apply to them.

❖ The Employment Act protects not only full-time regular employees but also part-timers, temporary / fixed term contract workers. [ part-time employees are defined as employees who work 70% or less than the normal working hours of a full-time employee in the same company carrying out the same work.


❖ Section 2 IRA states that “workman” means any person, including an apprentice, employed by an employer under a contract of employment to work for hire or reward, and for the purposes of any proceeding in relation to a trade dispute, includes any such person who has been dismissed, discharged or retrenched in connection with or as a consequence of that dispute, or whose dismissal, discharge or retrenchment has led to that dispute. ❖ [ * thus the term “workman” includes a wider range of employees than those covered by the Employment Act 1955. under the Industrial Relation Act, any person who has a contract of employment ( written or oral ) is considered as a workman. ]


❖ The probationary period is for the employer to test the suitability of the employee for the job assigned to him. The employer may test the aptitude, attitude, ability or adaptability of the employee for the job. He may also take into consideration other factors like behaviour, conduct, co-operation, and responsibility of the employee. If the employee is found to be lacking in a few of the above attributes, it is advisable for the employer in a cordial manner, with a view to improving him. ❖ An employer may extend the initial probationary period to a further period of 1-3 months. In such an event, the employee should be informed, in writing, before the end of the probationary period, that his probationary period is...
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