The Employment Act 1955 is the main legislation that regulates the terms and conditions of employment in Malaysia. It applies to employees whose wages do not exceed RM4,000 per month, who are engaged in manual labor, or who perform supervisory or managerial functions.
The Minimum Wage Order has recently increased the minimum monthly wage of employees to RM1,500 per month from 1 May 2022. Consequently, it is now mandatory for employers to ensure that their employees receive at least this minimum monthly salary.
The Employment Act in Malaysia provides clear guidelines regarding working hours to safeguard the well-being of employees.
Effective from January 1, 2023, the Employment Act 1955 in Malaysia has embraced the contemporary concept of Flexible Working Arrangement (FWA), also known as 'Work from Home' (WFH), to foster a healthier work-life balance.
Employees are entitled to a paid holiday at the ordinary rate of pay on 11 of the gazetted public holidays and on any day designated as a public holiday under the Holidays Act 1951.
According to the Employment (Amendment) Act 2022, the employee's normal working hours should not be more than 45 hours per week. Those monthly wages that do not exceed RM4,000.00 are entitled to overtime and are covered by Employment Act regulations.
Employees are entitled to paid leave (annual leave, medical leave, maternity leave, paternity leave)
The Employment Act of 1955 doesn't specifically address unpaid leave. However, employers generally cannot enforce unpaid leave without mutual agreement.
When the employee joined/resigned for an incomplete month, it is typically calculated based on the number of working days of that month. The salary formulae are as follows:
Termination must be for "just cause or excuse." While there isn't a fixed list of acceptable grounds for termination, common reasons include misconduct, poor performance, redundancy, or business closure. All employees are protected from unfair dismissal.
Employees with wages of up to RM4,000/month, employed for 12 months or more, are entitled to the following minimum statutory severance payments according to the Employment (Termination and Lay-Off Benefits) Regulations 1980:
During a retrenchment exercise, employers must submit a notification to the nearest Department of Labour, using the standard “Borang PK” form, at least 30 days before the termination of employment.
MACROSS helps you to build your business globally.
Our services are offered in Malaysia, Singapore, Indonesia, Philippines, Japan, China, Hong Kong and Taiwan.
JASON老大: 为大家提供有用的资讯，从找到工作到成为老板，从资金周转到享受现金流自由，从报税到税务回扣，都为你娓娓道来。
JASON BOSS
