7.

0 Law and Acts governing engineer (6

hours)
7.0 Law and Acts governing engineer (6 hours)
7.1 Environmental Quality Act 1974
7.2 Law of contract
7.3 Akta Suruhanjaya Pencegahan Rasuah Malaysia
(SPRM)
7.4 Employment Act and Regulation
7.5 Insolvency & Bankruptcy Act
7.6 Cyber Law

EDIT BY BA 23 MAC 2018

EMPLOYMENT LAWS

SHAIRA ISMAIL
FACULTY OF BUSINESS MANAGEMENT
UITM PULAU PINANG
Edit- Bulan Abd

5–2
 Malaysia – Ministry
 PERDANA MENTERI:
TIMBALAN PERDANA MENTERI:
MENTERI DI JABATAN PERDANA
MENTERI
TIMBALAN MENTERI DI JABATAN
PERDANA MENTERI
KEMENTERIAN KEWANGAN
KEMENTERIAN PELAJARAN &
PENGAJIAN TINGGI
KEMENTERIAN DALAM NEGERI
KEMENTERIAN KOMUNIKASI &
MULTIMEDIA
KEMENTERIAN PERDAGANGAN
ANTARABANGSA & INDUSTRI
KEMENTERIAN SUMBER ASLI &
ALAM SEKITAR
KEMENTERIAN PENGANGKUTAN
KEMENTERIAN PELANCONGAN &
KEBUDAYAAN
KERAJAAN TEMPATAN
KEMENTERIAN PERTANIAN &
INDUSTRI ASAS TANI KEMENTERIAN PERUSAHAAN
PERLADANGAN & KOMODITI
KEMENTERIAN PERTAHANAN
KEMENTERIAN KEMAJUAN LUAR
KEMENTERIAN KERJA RAYA BANDAR & WILAYAH
KEMENTERIAN KESIHATAN
KEMENTERIAN WILAYAH
PERSEKUTUAN
KEMENTERIAN BELIA DAN
SUKAN
KEMENTERIAN TENAGA,
TEKNOLOGI HIJAU & AIR
KEMENTERIAN SUMBER
MANUSIA
KEMENTERIAN SAINS,
TEKNOLOGI & INOVASI
KEMENTERIAN PERDAGANGAN
DALAM NEGERI, KOPERASI &
KEPENGGUNAAN
KEMENTERIAN PEMBANGUNAN
WANITA, KELUARGA &
MASYARAKAT
KEMENTERIAN LUAR NEGERI
KEMENTERIAN KESEJAHTERAAN
BANDAR, PERUMAHAN &
5–3
5–4
 Jabatan dan Agensi kerajaan
Malaysia
 https://ms.wikipedia.org/wiki/Jabatan_dan
_Agensi_kerajaan_Malaysia

5–5
 MALAYSIAN EMPLOYMENT
LAWS
 The principal legislation governing the labor
market and employment relationship in Malaysia
is the Employment Act 1955.
 However, the application of these rules to
Sarawak and Sabah references made under the
Act shall be substituted by references to the
Sarawak Labor Ordinance and Sabah Labor
Ordinance

5–6
 MALAYSIAN EMPLOYMENT
LAWS
1.0 Pensions Act 1980
For the administration of pensions, gratuities and other benefits for
officers in the public service and their dependants.

2.0 Employees Social Security Act 1969 (ESSA)

For social security protection to all employees and their dependants
as well as the employers. This Acts is administered by the Social
Security Organization (SOCSO) or Pertubuhan Keselamatan Social
(PERKESO), Malaysia.

3.0 Employees Provident Fund Act 1951

For the provision of financial security to its members particularly
after retirement, through a compulsory savings scheme. This Act
is administered by the Employees Provident Fund (EPF) or
Kumpulan Wang Simpanan Pekerja (KWSP), Malaysia.
5–7
 MALAYSIAN EMPLOYMENT
LAWS
4.0 Occupational Safety and Health Act
1994 (OSHA)
For the safety, welfare and health of persons of workplaces or in the
operation of high risk machinery against risks to safety or health.
This Act is administered by the Department of Occupational Safety
and Health or Jabatan Keselamatan dan Kesihatan Pekerjaan,
Malaysia.

5.0 Private Employment Agencies Act

1981
This Act is administered by the Manpower Department, Ministry of
Human Resources or Jabatan Tenaga Rakyat, Kementerian Sumber
Manusia, Malaysia.

5–8
 MALAYSIAN EMPLOYMENT
LAWS
6.0 Private Employment Agencies Act
1981
This Act is administered by the Manpower Department, Ministry of
Human Resources or Jabatan Tenaga Rakyat, Kementerian Sumber
Manusia, Malaysia.

7.0 Human Resources Development Act

1992
This Act is administered by the Human Resources Development
Council or Majlis Pembangunan Sumber Manusia, Malaysia.

8.0 Factories and Machinery Act 1967

This Act is administered by the Department of Occupational Safety
and Health or Jabatan Keselamatan Dan Kesihatan Pekerjaan,
Malaysia.

5–9
 MALAYSIAN EMPLOYMENT
LAWS
9.0 Petroleum (Safety Measure) Act 1984
This Act is administered by the Department of Occupational Safety and
Health or Jabatan Keselamatan Dan Kesihatan Pekerjaan, Malaysia

10.0 Trade Unions Act 1959

This Act is administered by the Trade Union Affairs Department or
.
Jabatan Hal Ehwal Kesatuan Sekerja, Malaysia

11.0 Industrial Relations Act 1967

 An Act which governs the relationship between employers
and workmen or employees and their trade unions and
generally deal with trade disputes.
 This Act is administered by the Industrial Relations
Department or Jabatan Perhubungan Perusahaan, Malaysia.

5–
10
 MALAYSIAN EMPLOYMENT
LAWS
12.0 Wages Council Act 1947
This Act is administered by the Department of Labour or Jabatan
Buruh - Peninsular Malaysia, Sabah and Sarawak.

13.0 Employment Information Act 1953

This Act provides the Department of Labour with power to obtain
and collect information and data on employment, terms and
conditions relating to an employment, from any industries in the
private sector. This Act is administered by the Department of Labour
or Jabatan Buruh - Peninsular Malaysia, Sabah and Sarawak.

14.0 Employment (Restriction) Act 1968

This Act is administered by the Department of Labour or Jabatan
Buruh Peninsular Malaysia

5–
11
 MALAYSIAN EMPLOYMENT
LAWS
15.0 Worker's Minimum Standards of
Housing and Amenities Act 1990
This Act is administered by the Department of Labour or Jabatan
Buruh Peninsular Malaysia

16.0 Weekly Holidays Act 1950

This Act is administered by the Department of Labour or Jabatan
Buruh Peninsular Malaysia.

17.0 Children and Young Persons

(Employment) Act 1966
This Act is administered by the Department of Labour or Jabatan
Buruh Peninsular Malaysia.

5–
12
THE MALAYSIAN LEGAL
ENVIRONMENT
 THE LEGAL ENVIRONMENT
1. The Employment Act 1955
2. The Children And Young Persons (Employment) Act 1966
3. The Wages Council Act 1947
4. The Employees Provident Fund Act 1991
5. The Workman’s Compensation Act 1952
6. The Employees Social Security Act 1969
7. The Occupational Safety And Health Act 1994
8. The Factories And Machinery Act 1967
9. The Trade Unions Act 1959
10. The Industrial Relations Act1967
11. The Employment (Restriction) Act 1968
12. Pembangunan Sumber Manusia Bhd Act 2001
The Employment Act 1955
 The Employment Act 1955
 Enforced by the Labor Department
 Sets minimum labor standards for workers
and seek to protect them from exploitation
 Apply to Peninsular Malaysia and the
Federal Territory of Labuan only
 The employees in East Malaysia is covered
under The Sabah and Sarawak Labor
Ordinances
 Covers
 Employees in the private sector earning not more
than RM2000 per month
 those who work as manual labors, supervise
manual labors, operate or maintain machines
 The Employment Act 1955
 Areas covered
 Contracts of service,
 payment of wages,
 employment of women,
 working hours and
holidays,
 registers, returns,
complaints and inquiries
 The Employment Act 1955

Contract of Service
 An agreement whereby one person
agrees to employ another as an employee
and that the other agrees to serve his
employer as an employee
 Such agreement can be oral, in writing,
express or implied
 The Employment Act 1955

Payment of wages
 Every employer shall pay
to each of his employees
not later than the seventh
day after the last day of
any wage period the
wages, less lawful
deductions
 The Employment Act 1955

Employment of Women
 no employer shall require any female employee to
work in any industrial or agricultural undertaking
between the hours often o'clock in the evening and
five o'clock in the morning
 nor commence work for the day without having had a
period of eleven consecutive hours free from such
work
 No female employee shall be employed in any
underground working
 The Employment Act 1955
Maternity Protection
 Every female employee shall be entitled to maternity
leave for a period of not less than sixty consecutive
days
 A female employee shall be entitled to receive
maternity allowance for the eligible period from her
employer if:
 she has been employed by the employer at any time in the
four months immediately before her confinement; and
 she has been employed by the employer for a period of, or
periods amounting in the aggregate to, not less than ninety
days during the nine months immediately before her
confinement.
 The Employment Act 1955

Working Hours and Holidays

 Rest day
 Every employee shall be allowed in each week a rest day of
one whole day
 Hours of work
 an employee shall not be required under his contract of
service to work:
 more than five consecutive hours without a period of leisure of
not less than thirty minutes duration;
 more than eight hours in one day;
 in excess of a spread over period of ten hours in one day;
 more than forty-eight hours in one week
 The Employment Act 1955
Working Hours and Holidays
Working on.. Pay rate Overtime Pay
Work day Normal rate 1.5 x normal rate

Rest day 1 x normal rate (for < ½

his normal hours of work )
2 x normal rate (for > ½
his normal hours of work )

Public holidays 2 x normal rate 3 x normal rate

 The Employment Act 1955
Working Hours and Holidays
 Holidays, annual leave and sick leave
Years of Service Public Holidays Annual Leave Medical
Leave
< 2 YEARS 10 days including: 8 days 14 days*
the National Day
2 – 5 YEARS the Birthday of the Yang di-Pertuan 12 days 18 days*
Agong

> 5 YEARS the Birthday of the Ruler or the Yang 16 days 22 days*
di-Pertua Negeri
the Workers' Day

* 60 days if hospitalized
The Children And Young Persons
(Employment) Act 1966

 To prevent the exploitation of child labor

 Under 14 yrs – only light work in family’s
business
 14-16 yrs
 In light work that does not involve the use of
machinery; and
 A maximum of 7 hrs per day
 May not work between 8pm – 6am
The Wages Council Act 1947
 The Wages Council Act 1947

 Enforced by the Labor Department

 Covers 4 sectors
 Shop assistants
 Hotel and catering industry workers
 Port of Penang stevedores
 Cinema workers
The Employees Provident Fund
Act 1991
 The Employees Provident Fund Act 1991

 Administered by the Employees Provident Fund

Board
 To ensure workers have funds available on their
retirement
 Covers:
 All employees in Malaysia (16 years old and above)
 Before 1 August 1998: Expatriats and foreign workers
are not required to contribute (but can choose to
contribute)
 After 1 August 1998: Expatriats and foreign workers
earning less than RM2,500 are required to contribute.
 The Employees Provident Fund Act 1991
 Those who are EXEMPTED from making the
compulsory contribution are
 employees or workers holding Employment Pass or
expatriates holding Visit Pass (Temporary Employment)
whose monthly wages is not less than RM2,500
 Thai workers who enter Malaysia with a Territorial Pass
 Seamen
 Foreign domestic maids
 Self-employed persons
 Out-workers who do cleaning and alteration repair works
 Persons detained in custody, in prison, Henry Gurney
School and mental hospital
 Pensioners
 The Employees Provident Fund Act 1991

 Contributions

% of contribution

Employer Employee

All employees except expatriates 12 11

and foreign workers

Expatriates and foreign workers RM5/per 11

(except for those excluded) person
 The Employees Provident Fund Act 1991

 Members’ Account: 3 separate accounts

 Account 1 (60%): for pension
 Account 2 (30%): for purchase of house and
computer
 Account 3 (10%): for medical costs
The Employees Social Security
Act 1969-SOCSO
The Employees Social Security Act
1969 - SOCSO
 Enforced by the Social Security
Organization
 To provide protection to workers who may
be involved in an accident at work or who
contract some occupational disease
 For employees in the private sector who
earns less than RM3000 per month
 An employee must be registered with the
SOCSO irrespective of the age.
 The principle “ once in, always in”
 The Employees Social Security Act 1969 - SOCSO

 Nevertheless, SOCSO does not cover the following

categories of persons :
 A person whose wages exceed RM3,000 a month and has
never been covered before.
 Government employees.
 Domestic servants employed to work in a private dwelling
house which includes a cook, gardeners, house servants,
watchman, washer woman and driver.
 Employees who have attained the age of 55 only for
purposes of invalidity but if they continue to work they
should be covered under the Employment Injuries
Scheme.
 Self-employed persons.
 Foreign workers.
The Employees Social Security Act 1969 - SOCSO

 An insured person or dependants will be entitled to the

following benefits :
 Periodical payments in the case of invalidity
 Periodical payments in the case of disablement suffered as a
result of an employment injury
 Periodical payments to the dependants of an insured person
who dies as a result of an employment injury
 Payments for funeral benefit or expense on the death of an
insured person as a result of an employment injury
 Periodical payments to an insured person who is in receipt of
invalidity pension or disablement benefit and is so severely
incapacitated or disabled as to require the personal attendance
of another person
 Medical treatments for the attendance on insured persons
suffering from disablement
 Periodical payments to dependants of an insured person who
dies while in receipt of invalidity pension
The Employees Social Security Act 1969 - SOCSO

 SOCSO provides coverage to eligible employees through 2

schemes namely
 Employment Injury Insurance Scheme
 Invalidity Pension Scheme.
 These schemes are classified into 2 categories :
 First Category - Employment Injury Insurance Scheme and Invalidity
Pension Scheme. The contribution payment is made by both the
employer and employee
 Second Category - Employment Injury Insurance Scheme Only. The
contribution is paid by the employer only. An employee who is not
eligible for coverage under the Invalidity Pension Scheme is protected
under this category.
 These schemes provide the benefits of invalidity pension, invalidity
grant, survivors pension, rehabilitation, funeral benefit, constant
attendance allowance and educational loan.
The Workman’s Compensation Act
 The Workman’s Compensation Act

 Enforced by the Labor Department

 To provide compensation to workers
who have accidents at work or who
contract employment-related diseases.
 Covers:
 Foreign workers earning less than RM 500
per month
 Employers must take out an insurance
policy to cover liability under the act.
The Occupational Safety and Health Act
1994
 The Occupational Safety and Health Act 1994

 Gazetted on the 25 February 1994 by the

Malaysian Parliament.
 Enforced by the Department of Occupational
Safety and Health
 To ensure safety at the workplace
 Carry out inspections at workplaces
 Organize promotional activities
 Assist government departments with technical
expertise
 Carry out activities aimed at improving safety and
health
The Occupational Safety and Health Act 1994

 Applied to the following sectors

 Manufacturing
 Mining and Quarrying
 Construction
 Agriculture, Forestry and Fishing
 Utilities:
 Electricity;
 Gas;
 Water; and
 Sanitary Services
 Transport, Storage and Communication
 Wholesale and Retail Trades
 Hotel and Restaurants
 Finance, Insurance, Real Estate and
Business Services
 Public Services and Statutory Authorities
The Occupational Safety and Health Act 1994
 General duties of employers and self-employed persons to
their employees
 the provision and maintenance of plant and systems of work that are,
so far as is practicable, safe and without risks to health;
 the making of arrangements for ensuring, so far as is practicable,
safety and absence of risks to health in connection with the use or
operation, handling, storage and transport of plant and substances;
 the provision of such information, instruction, training and supervision
as is necessary to ensure, so far as is practicable, the safety and
health at work of his employees;
 so far as is practicable, as regards and place of work under the
control of the employer or self-employed person, the maintenance of
it in a condition that is safe and without risks to health and the
provision and maintenance of the means of access to and egress
from it that are safe and without such risks;
 the provision and maintenance of a working environment for his
employees that is, so far as is practicable, safe, without risks to
health, and adequate as regards facilities for their welfare at work.
The Occupational Safety and Health Act 1994

 General duties of employees at work

 to take reasonable care for the safety and health of
himself and of other persons who may be affected by
his acts or omissions at work;
 to co-operate with his employer or any other person in
the discharge of any duty or requirement imposed on
the employer or that other person by this Act or any
regulation made thereunder;
 to wear or use at all times any protective equipment or
clothing provided by the employer for the purpose of
preventing risks to his safety and health; and
 to comply with any instruction or measure on
occupational safety and health instituted by his
employer or any other person by or under this Act or
any regulation made thereunder.
The Factories and Machinery Act 1967
 The Factories and Machinery Act 1967

 Gives protection in terms of health and

safety for all workers working in
factories regardless of sex
 The jurisdiction of the act covers all
factories
The Trade Unions Act 1959
 The Trade Unions Act 1959
 Administered by the Trade Unions
Department
 Permitting workers to form and join
trade unions provided these are
registered organizations
 Provides:
 The procedures for applying for registration,
the use of union funds, the rights and
liabilities of unions, and other matters
relating to the constitution of unions
The Industrial Relations Act
1967
 The Industrial Relations Act 1967

 Enforced by the Industrial Relations Department

 To provide systems which will encourage
industrial harmony
 Is applicable throughout Malaysia and provides
for the regulation of relations between employers
and workmen or employee and their trade union
and the prevention and settlement of trade
disputes.
 Emphasizes on direct negotiation between
employers and workmen or employees and their
trade unions to settle their differences and to
regulate their collective relationship
 The Industrial Relations Act 1967
 The Industrial Relations Act 1967
1. Protects the legitimate rights of employers and workmen
or employees and their trade unions.
2. provides the procedure relating to submissions of claims
for recognition and scope and representation of trade
union and collective bargaining
3. Does not allow matters relating to promotion,
recruitment, dismissal, transfer, retrenchment,
reinstatement and allocation of duties and prohibition of
strikes and lockouts over any of these matters to be
included in the proposal for collective bargaining
4. provides for speedy and just settlement of trade disputes
by conciliation or arbitration where direct negotiation
fails
5. provides the power to the Ministry of Human Resources
to intervene and to refer at any stage any trade dispute
to the Industrial Court for arbitration
The employment (restriction) act 1968

Non-Malaysian citizens are

required to obtain a valid
work permit before they can
be employed locally.
 Human Resources HRDF

Development Berhad Act 2001

Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF

 To ensure employers conduct training for their

workers so as to upgrade their skills and
abilities
 Enforced in January 1993
 Led to the establishment of the Human
Resources Development Fund (HRDF)
 Administered by the Human Resources
Development Council (HRDC).
 Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF
Categories of Employers Covered Under the PSMB Act, 2001

 Employers with 50 Malaysian employees and above in the

manufacturing sector (w.e.f. 1 January 1993)
 Employers with 10 to 49 Malaysian employees and a paid-up
capital of RM2.5 million and above in the manufacturing sector
(w.e.f. 1 January 1995)

 Employers with 10 Malaysian employees and above in 21

selected industries in the services sector, namely, the hotel
industry, tour operating business (in-bound tour only),
shipping, air transport, telecommunication, computer
services, advertising, postal & courier services and freight
forwarding (w.e.f. 1 January 1995); private higher education,
training and the energy sector (w.e.f. 17 February 2000);
 Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF
Categories of Employers Covered Under the PSMB Act, 2001
 and direct selling, port services, engineering support and maintenance services,
research and development, warehousing services, security services, private
hospital services and hypermarkets, supermarkets and departmental stores -
(w.e.f. 1 January 2005). For hypermarkets, supermarkets and departmental
stores, only employers with 50 Malaysian employees and above are required to
register. Commercial land transport and railway transport services industry with 10
employees and above (w.e.f. 1 December 2007)

 employers in the manufacturing sector with 10 to 49 Malaysian employees and a

paid-up capital of less than RM2.5 million are given the option to register with
PSMB (w.e.f. 2 August 1996).
 Employer with 50 Malaysian employees and above in the mining and quarrying
sector (w.e.f 1 June 2014)
 Employers with 10 to 49 Malaysian employees and a paid-up capital of RM2.5
million and above in the mining and quarrying sector (w.e.f 1 June 2014)
 Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF
Categories of Employers Covered Under the PSMB Act, 2001

 Employers with 10 Malaysian employees and above in 17 selected

industries in the services sector, namely, gas, steam and air-
conditioning supply, water treatment and supply, sewerage, waste
management and material recovery services; production of motion
picture, video and television programme, sound recording and
music publishing, information service activities,

 tourism enterprise, building and landscape services, event

management services, early childhood education, health support
services, franchise, sale and repair of motor vehicles, private
broadcasting services, driving school and veterinary services (w.e.f 1
June 2014)
 Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF
Categories of Employers Covered Under the PSMB Act, 2001

 mployer with 30 Malaysian employees and above in food and

beverage services (w.e.f. 1 June 2014)
 Employers in the mining and quarrying sector with 10 to 49 Malaysian
employees and a paid-up capital of less than RM2.5 million are given
the option to register with PSMB (w.e.f. 1 June 2014).
Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF
EMPLOYERS REGISTRATION
 Under Regulation 4(1) of the Pembangunan Sumber
Manusia Berhad (Registration of Employers and
Payment of Levy) Regulations 2001, employers have
30 days to register with PSMB from the date they are
liable. Employers falling in any of the categories
elaborated are still liable to register with PSMB under
the Pembangunan Sumber Manusia Berhad Act,
2001. Those who have yet to register are advised to
do so, failing which legal actions shall be taken
against them.
Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF

EMPLOYERS REGISTRATION
 However, according to Employer Circular No. 5/2014, the
Honourable Minister of Human Resource in line with Section 19
of the PSMB Act, 2001 has agreed to grant a grace period (from
the 19 new subsectors) and amnesty period (from the existing
sub sectors) for a duration of six months, effective from 1 June
2014 to 30 November 2014. With the implementation of the
grace period and amnesty period, employers are given special
waiver to register anytime within the 6 months period, starting
form 1 June 2014 to 30 November 2014, without incurring any
arrears of levy and interest.
Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF

HUMAN RESOURCES DEVELOPMENT LEVY

 The Human Resources Development Levy is the

mandatory levy payment imposed by the
Government on specified groups of employers for
the purpose of employee training and skills
upgrading. Under the law, certain categories of
employers are liable to pay a Human Resource
Development levy for each working employee at the
rate of 1.0% of the monthly wages of the employee.
5–
61
 Human Resources Development Berhad Act
2001- PSMB Act, 2001 - HRDF

HUMAN RESOURCES DEVELOPMENT FUNDS

 The Human Resources Development Fund (HRDF) is
administered by Pembangunan Sumber Manusia Berhad (PSMB),
an Agency under the Ministry of Human Resources, via the
Pembangunan Sumber Manusia Berhad Act, 2001.
In fulfilling the nation's aspiration to attain the status of developed
country by the year 2020, the HRDF was established in 1993 with
the aim of developing quality human capital and world-class
workforce in order to achieve a high income economy based on
knowledge and innovation.

5–
62
Q & A SESSION
5–
63