Labour Court falls under jurisdiction of Labour Department of Malaysia in accordance with the

Employment Act 1955. The Labour Court’s jurisdiction is more limited than the Industrial Court,
where the Director General of Labour can only hear cases that involve employees whose wages
do not exceed RM5,000 a month, or employees who are involved in manual labour regardless of
salary, as mentioned in Section 69B Employment Act 1955. Beside that, the Labour Court also
may inquire into, and either confirm or set aside any decision made by the employer under
section 14 of the Employment Act 1955, and only on unpaid wages or other payments, as
mentioned in section 69(3) Employment Act 1955. Other example types of claims for Labour
Court is claims for payment in lieu of notice by either employer or employee, claims on
premature retirement before the minimum retirement age and claims on dismissal for
misconduct.

While, Industrial Court has jurisdiction to decide on employment disputes in accordance with the
Industrial Relations Act 1967 with a referral order from Minister of Human Resources. In
addition, the Industrial Court has much greater jurisdiction compared to Labour Court, which
may include the power to decide on trade disputes, trade union recognition, order reinstatement
of the claimant to his former position, and awarding back-wages and/or compensation in lieu of
reinstatement. Other example of types of claims for Industrial Court is claims on employment
dismissal and victimization.