Malaysian Labour Laws Handbook

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If you’re one of the employees or wage earners out there, it is always good for you to get acquainted with some of the ins and outs of the labor laws in Malaysia. Sometimes, we fail to realize that we are being victimized by our own employer without us knowing and we have ourselves to blame for our negligence. Also, many a time, we failed to comprehend and understand our right and entitlement as an employee.

A Handbook of Malaysian Labour Laws is written to explain the labour laws in a simple and straight forward manner, and with the author’s attempt to provide the information in a layman terms, this makes an ideal book for beginners.

Malaysian Labour Laws BookThe author also seems to have, as far as possible, avoided the excessive use of technical and legal jargons in his writing. In short, the book is well suited for human resource personnel, trade union leaders, students specializing in human resource management, and other employees in different specialization.

The 470-page book was written by M. N D’Cruz, who possesses more than 40 years of working experience in education and corporate sectors. D’Cruz was a member of the Panel of the Industrial Court of Malaysia from 1973 to 1989, where he gained valuable hands-on experience dealing with dismissal cases, non-compliance, collective agreements and disciplinary actions.

Throughout the book, newspaper reports, case studies and court judgments have been included to give a clearer picture to the readers on how certain issues are resolved.

Some useful information you will discover:

  • Are you covered by the Employment Act 1955?
  • What can you do if your employer does not pay your salary on time?
  • Can an employee refuse to do overtime?
  • Can your employer force you to take annual leave when you do not wish to?
  • Can your employer change your employment terms and conditions?

The author, D’Cruz currently operates his own Human Resource consultancy firm, offering Employment and Industrial Relations, Personnel Management, Labour Laws, Industrial relations, Supervisory Skills, Occupational Safety and Health and more.

  • Book title: A Handbook of Malaysian Labour Laws
  • Retail price: RM69
  • Available at: Major bookstores (MPH, Popular etc)
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37 thoughts on “Malaysian Labour Laws Handbook

  1. Pingback: How to Calculate Overtime Salary Payment | SKORCAREER

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  3. Alan

    I was just wondering if the Malaysian Labour Law protects doctors working with a government health facilities. Most of the time, we are required to work about 36 hours straight, sometimes even without sleep when we are on-call. Is this considered abuse of labour by our employers according to the Malaysian Labour Law. If doctors are not protected by this law, why is that so?

    Perhaps, Dr S. Subramaniam would like to offer some enlightenment which will put to rest this perturbing question which has been running in the minds of all doctors.

    Reply
  4. Jenny

    Im pregnant in the 8 months. I would like to know about the compensation by the employer if they were to terminate me due to economic downturn.

    Reply
  5. Tan Phaik Sim

    Dear Sir/Mdm

    I went for a hystectomy with ovaries & cervix removal surgery in a hospital and was staying there for 4 days. Then the doctor gave me 6 weeks for recovery from date of surgery. Can you please tell me what is the guide to Hospitalisation mc cause I’m confuse. Is it the actual staying in the hospital or recovery time also included.

    Thank you.

    Reply
  6. kim

    How to calculate compensation on laying off workers eg. works for the company since September 1991 and he present basic salary RM4800.00 per month

    Reply
  7. Siti

    Dear Sir/Madam
    Previously im working at a boutique.My ex-company knows that i dont have a transportation.Then the shop manager give me a letter of transfer.They transfer me to warehouse.Im refuse to sign.He just said just sign the lettter of acknowledge.But when i said i cant go because i dont have a transportation,they give me an option to give 1 month notice to resign.To me is like they already plan this.I cant do anything because i sign that letter.Is there any idea how im going to fight this?

    Reply
  8. Pavitra

    Dear Sir/Madam

    I’m a HR student. I have read the ” A Handbook of MALAYSIAN LABOUR LAWS”. I did the answer for the case study 1 from page 419 and submmited to my lecturer but he said that it is not the exact answer. I’m really confused now, can i know how to get the correct answer? Thank You.

    Reply
  9. christina

    i started a new job on the 20th of the said mth… was told my salary will be calculated as to how many days i work… question now is, my HR dept. said it’s my “Basic salary divided by 31 days”… or was it suppose to be divided by 26 days?

    Reply
      1. William

        for christina case, the calculation shall be this way…

        basic pay / number of days in the particular month (e.g. jan-31 days, april 30 days…) X days worked in that particular month… (if u start on… e.g. december… 20th to 31st is 12 days… so…

        basic / days of month X 13 days….

        RM2,000.00 / 31 days X 13 days = RM838.70

        however, overtimes are calculated based on 26 days, as stipulated in EA 1955

        Reply
  10. Lina

    how to calculated how much the salary for one day if my basic is RM1100.00, since i’m not working on saturday and sunday. my woring day is 5 days only.

    Reply
  11. Eppie

    I need some information according to M’sian Labor law, is it compulsory for ├ín employer to pay bonus on employees retirement/resignation, as per referred to this handbook Goh Chen Chuan stated ‘based on the Employer discretion and base on employment contract….is it true….? what is the eligiblity and how is the calculation?

    Reply
  12. Ravi

    What is my OT calculation as per labour law if I were to work overtime during Malaysian Public Holidays.My basic pay is RM1500.

    I’m a contract staff and my contract says that public Holidays claim is base on Malaysian Labour Law.

    Please advice.

    Reply
    1. Mages

      Dear Sir,

      Currently we are paying the below rate for those workers and junior executives salary above rm1500.
      1.0 Work on rest day
      1.5 Overtime on working day
      2.0 Overtime on rest day / work on p.holiday
      3.0 Overtime on p.holiday

      I was assiged to submit one fix rate tht applicable to all the above.

      Please advise

      Magesh

      Reply
  13. Kylie Chau

    Hi, i am Kylie, i have tendered m resgination letter on 23 Apr 2010 as an accounts executive, however company is requeired me to teach all my knowlegde and skill to my boss which is totally nothing knowledge in the account field, and she is said then i am non performed & no future from this company. do i have the rights to refuse this requirement?

    Reply
    1. William

      you have absolute right to refuse the handover work since your boss said you didn’t perform at all.

      the main reason employees did proper handover jobs were because we want to get positive reference from our previous employer when new employer called for verification.

      since your employer said you didn’t perform, i guess she will tell the same if your new employer called for reference.

      Reply
  14. Hazma

    Hi, Im a Malaysian. my company is working on a husing project and time is almost over, my company is requesting us to work 12 hours a day everyday with a break of 30 minutes. They also warned us RM100 will be deducted from salary if we fail to meet the given instruction.
    I requested that 12 working hours be reduced but my manger terminated me on the ground of insubordination. Plz help me to fight this case.

    Reply
    1. Zul

      I don’t know what had transpired during the ‘insubordination’ but a company can only terminate their employees through the right procedure. One is to hand 2 warning letters and another one followed by termination. Second, if the misconduct is deemed serious, it can be done through a DI (domestic inquiry).

      If you feel you are victimized, lodge a report to the labour/industrial office fast and get them to assist you in building your case.

      Reply
  15. Janice

    Hi,
    I understand that there is a list of ‘Protected Terms’ for careers in Malaysia. For example, if someone were to call themselves doctor or engineer or architect, they must posses the certificate in able to call themselves that if not they can be sued. So where can I find this list? I tried calling the labour law but they have no strong answer for my question. I want to know if Physician is a protected Term. Hope you would help me. Thanks in advance

    Reply
  16. JC

    Hi, i would like to ask, if working on Public Holiday (Hari Raya Haji) or sunday, but my basic salary is RM 1,700.00. is that entitle to get Ordinary or double pay on such day?
    waiting your reply, because my company hold my claims on that day.

    Thanks & Regards
    JC

    Reply
    1. William

      If your company declares Hari Raya Haji as PH then you are entitled for double pay in case you are required to work on that day.

      However, if Hari Raya Haji is not declared by your company as Public Holiday you are not entitled for any double pay. That shall be your working day.

      Reply
      1. JC

        hi, morning, yes, the said holiday is declare as PH in my company. but my HR mention that because of my salary over RM1.6k, so that is not entitle for double pay. Is that stated in Labour law regarding above matter?

        Reply
        1. William

          If your company refused to pay you salary then they are obliged to compensate you with a replacement leave because Hari Haji has been declared as company’s public holiday.

          Reply
  17. Jack Tan

    Dear sir/madam,

    I m currently attach with this A company for almost a year now,but I have yet to receive my confirmation letter?
    I started march 23rd 2010 and got a transfer letter from the company hr manager on august 2010 till now,I have not get my confirmation,does that mean I m a confirmed staff? coz I heard alot from people that within 3-6 months if dont get any extenders letter,it means I m a confirm staff.
    Please shard your knowledge,Thank you so much!

    Reply
  18. Chai

    Dear Sir / Madam,

    I would like to check whether company allow to not provide Public Holiday Replacement for staff on Hari Haji(6 Nov 11), Awal Murharam (27 Nov 11) and Christmas (25 Dec 11)? as company has provided 14 days of Gazetted Public Holiday to Staff in Year2011.

    Reply
  19. Mehedi Hasan

    Dear Sir Editor,

    Greeting from Bangladesh.
    I want to know, regard the migrant workers (who has come from Bangladesh to Malaysia with working visa as a worker in a factory, i.e- garments factory), then are those workers are under such Malaysia labor law which are stated here ? Or Is there any other laws or codes?
    I’d would be grateful to you if you could send me some links in order to get learn, if online publications are available.

    Regards.

    Reply
  20. Andy Lau

    I am working as a sales executive since 2 years ago with basic salary plus commission. I am also a family member to the directors. Twice already, after there were no other outsiders around, I was told the company was not paying commission while i was asking when the commission was paid. The general manager told me that I was not hitting the sales target which I had no idea of. Is there anything I can do to trace back the commission?

    Reply
  21. Albert

    My workers pay on hourly. What is the culculation like if they work overtime on Saturday & Sunday till next day morning? Any compensation day off on Monday with pay ?

    Reply

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