Key Facts: Malaysian Employment Law - Probationary Periods

Employers can impose a probationary period of up to 6 months for new employees. During this time, the employment can be terminated with just 1 day's notice by either party, without having to provide a reason.

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Key Facts: Malaysian Employment Law - Minimum Wage Regulations

The Minimum Wages Order sets the minimum wage for employees, which varies by region and sector. Employers must comply with these regulations to ensure fair compensation for workers.

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Key Facts: Malaysian Employment Law - Working Hours and Overtime

Regular working hours are capped at eight hours a day and 45 hours a week. Overtime pay is mandated at 1.5 times the hourly wage for normal working days, with higher rates applicable for work on rest days and public holidays.

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Key Facts: Malaysian Employment Law - Personal Data Protection

The Personal Data Protection Act mandates that employers must obtain consent from employees before collecting or disclosing personal data. Employees have the right to access and correct their personal information held by employers.

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Key Facts: Malaysian Employment Law - Non-Compete Clauses

Non-compete clauses are generally unenforceable in Malaysia, as the Contracts Act 1950 voids agreements that restrict lawful professions, allowing employees to freely join competitors.

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Key Facts: Malaysian Employment Law - Union Rights

Employees have the right to form and join trade unions under the Trade Unions Act 1959. This right cannot be restricted by any contract, and unions can provide collective bargaining power and representation in disputes.

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Key Facts: Malaysian Employment Law - Severance Pay

In retrenchment, employees receive severance pay based on service length: 10 days' salary per year for under two years, and 20 days for five years or more.

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Key Facts: Malaysian Employment Law - Leave Entitlements

The EA specifies various types of leave, including annual leave, sick leave, and maternity leave. Employees are entitled to a minimum of 8 to 16 days of annual leave depending on their length of service.

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Key Facts: Malaysian Employment Law - Written Contracts Required

Any employment lasting more than one month must be formalized through a written contract. This contract should detail the nature of work, compensation, benefits, and working hours.

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Key Facts: Malaysian Employment Law - Employment Act 1955

The primary legislation governing employment in Malaysia is the Employment Act (EA) 1955. It outlines minimum standards for working conditions, including wages, leave entitlements, and termination procedures.

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Employment (Amended) Act 2022 - Only Covers Employees In Peninsula Malaysia

As Sabah & Sarawak has their own labour ordinance, this act only covers employees that worked in Peninsula Malaysia only. 

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Employment (Amended) Act 2022 - Protection of Pregnant Employees

Employers are prohibited to terminate pregnant employees, unless, such employees violates employment contract, conduct major misconduct and bankruptcy of employers.

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Employment (Amended) Act 2022 - Certain Provision For Employees Earning Less Than RM4000

Certain provisions, such as payment for work done on rest days and public holidays, overtime payments and termination, layoff benefits, and others, would only apply to a select group of employees earning RM4,000 or less.

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Employment (Amended) Act 2022 - It Covers All Employees

As the amendment covers all employees, provisions stated in the act such as annual leave, sick leave, lawful deductions, wage period, time of payment of wages, system of payment of wages, etc. applied to all employees.

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Employment (Amended) Act 2022 - It Covers All Employees

The Amendment has been open to all employees regardless of salary scale. This means that all employees can make claims or complaints at Department of Labour regardless of salary scale.

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Types of Termination in Employment Act - Termination For Special Reason

An employer may dismiss an employee without notice for misconduct after due inquiry. Type of misconduct includes; refusal of employee to follow order, involve in gambling, disobedience, fraud, threat, assault & fighting & sexual harassment, drug, alcohol abuse etc.

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Types of Termination in Employment Act - Termination Without Notice

An employee can terminate a contract without giving notice by paying to the other party an indemnity of a sum equal to the amount of wages which would have accrued to the employee during the term of such notice.

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Termination Notice Period in Employment Act - 8 Weeks

If it’s not stated in Contract of Service, 8 weeks termination notice should be given to the employees which have served more than 5 years of service.

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Termination Notice Period in Employment Act - 6 Weeks

If it’s not stated in Contract of Service, 6 weeks termination notice should be given to the employees which have served more than 2 years but less than 5 years of service.

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Termination Notice Period in Employment Act - 4 Weeks

If it’s not stated in Contract of Service, 4 weeks termination notice should be given to the employees which have served less than 2 years of service.

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