To prevent companies in Malaysia from mistreating and/or exploiting their employees, labour laws are established. Such laws grant the employees the rights to be employed in a fair and respected manner, and this applies to local workers and foreign talents who are working in the country.
The primary employment and labour laws in Malaysia include, among others:
What are the Labour Laws in Malaysia
There are a few Acts and Orders under the Employment and Labour laws in Malaysia, these include:
1. The Employment Act of 1955
This the primary law governing employment in Malaysia and it protects any employee who falls under the First Schedule. Employees earning less than RM 2,000 per month, manual labor, and anyone involved in the operation or maintenance of any mechanically powered vehicle are included in the First Schedule.
Some of the basic rights you are entitled to as a foreign worker includes:
|Payment of Wages
||Employee must be paid within 7 days after the last day of wage period
||Employees cannot work more than 5 hours consecutively without minimum rest time of 30mins
Employees also cannot work for more than 8 hours a day, more than 48 hours a week
|Annual leave entitlement
||< 2 years: 8 days >2 years, < 5 years: 12 days >5 years: 16 days
|Medical leave entitlement
||< 2 years: 14 days >2 years, < 5 years: 18 days >5years: 22 days
Hospitalization: 60 days
||Maternity leave: 98 days
Paternity leave: 7 days
2. The Industrial Relations Act 1967
This Act is applicable to every employee in Malaysia as well and it governs the relationship between employee and employers. It also specifies regulations, assisting the settlements of any dispute that arises between employee and employers.
3. Trade Union Act 1959
This governs trade unions, protecting the rights and liabilities of all members of trade unions in the country.
4. Employee’s Provident Fund Act 1991 (EPF Act)
For the EPF Act, it requires all employers and their employees to contribute a certain amount from their salary to the EPF. This is similar to the Employee’s social security Act 1969 which provides social security from employers and employees by imposing compulsory rates. These Acts require both employees and employers to contribute funds at a certain prescribed rate.
5. The Occupational Safety and Health Act 1994
This Act governs the welfare, health, and safety of all individuals in a certain workplace.
6. Minimum Wage Order 2018
The Minimum Wage Order 2018 prescribes the minimum wage that all employees in Malaysia are to receive while Minimum Retirement Age Act sets the minimum retirement age at the age of 60 and employers are unable to retire the employees below the minimum age of 60 unless early retirement by the decision of employee is permitted.
7. Personal Data Protection Act (PDPA)
This Act governs the privacy of employee’s personal and any sensitive information.