12/10/2022

KMS3084 EMPLOYMENT LAWS

Unit 1 –
Introduction to Employment Laws

a) What is Employment Law?

b) Development of Malaysian employment law
c) Why study employment law?
❖Common law duties of employers
❖Common law duties of employees

Have you heard about Malaysian Labour

Legislations?

List down the example of Malaysian

Labour Legislations that you are aware
off.
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What is Employment Law?

• Employment Law regulate the relationship between
employer and individual employee. It is known as contract
of service.

• It is the law which deals with the legal rights of and

limitations on working people and their organizations. It
also include minimum benefits that must be given to the
employee.

What is Employment Law?

• Labour law is laws and regulations that governs both the

employment and industrial relations sectors. The purpose of
labour laws are:-
(i) To regulate the relationship between employer and
employee – individual and collective;
(ii)To determine the rights and liabilities of parties;
(iii) To prevent and settle trade disputes; and
(iv) To provide remedy.

What is Employment Law?

• As such, it looks at many features of the links
between manager, trade unions and employees.
In different countries there are different;
employment laws linked to unionized places of
work are different from those relating to specific
individuals and in most of the countries these
differences are not there.

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Development of
Malaysian Employment Law
• Basically, it was created from the idea known as the
subordination of individual employee with the capitalist
enterprise.
• In general, labor law started because the workers
demand for suitable environment, right to organize,
and the instantaneous demands of employers to limit
the powers of workers' and to keep labor costs low.
• It is also taking into consideration on the safety and
health of employees.
• Labor rights have been essential to the social and
economic growth since the industrial revolution.
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Development of
Malaysian Employment Law

• There was a revolutionary regarding this relationship

which started with master and servant, connoting the
idea of slavery where the servant served the master.
• The relationship has changed over the years due to
many reasons. It has changed to employer and
employee relationship with the attached connotes
rights and obligations.
• This is where the employer has an obligation to
provides wages, benefits, safe working environment
and other protections within the ambit of laws.

Development of
Malaysian Employment Law

• When the British came, they brought with them

migrant workers.
• This migrant workers were brought in under the
Indenture system which means that they were
brought in for a certain period of time and for certain
kind of job.
• When the period end, they have the choice (either
continue to work for another specified period or
return to their country).
• The Indenture system applied to the migrant workers
are mining and rubber plantation.
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Development of
Malaysian Employment Law
• During this period, there is no comprehensive labour
legislation. Therefore the British authority in the Straits
Settlement drafted a Labour Code to be abided by the
workers who were working under the Indenture
System.
• The Indenture System is very much designed and
framed for the condition of Chinese and Indian
workers at mining and plantation industries.
• The Labour Code was extended to FMS in 1912. It
was revised where it applied to all races and workers.
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Development of
Malaysian Employment Law
• Nonetheless the Labour Code was quite restricted
because the provisions are suitable only for working
conditions in mines and plantations industries (i.e. it
does not cover the factory workers at that instant).
• Only after the formation of Malayan Union, the first
ordinance has been established.
• After Independent, it is known as Employment Act
1955.

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Why Study Employment Law?

Common Law Duties of Employers

• The common law duties of employers are implied into all

contracts of employment including those covered by the
Employment Act 1955.

• Employers owe the following common law duties to their

employees:-
i. Duty to pay wages
ii. Obligation to provide work
iii. Duty to indemnify
iv. Duty of care
v. Duty to treat the employee with respect and trust
vi. Duty to give testimonials and references
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Why Study Employment Law?

Common Law Duties of Employers

i. Duty of wages – employers are contractually liable for work

done. Apart from offering a salary, some employers may opt
to pay an employee for work done or service provided by
means of commission, fee and receipt of tips from customers.

▪ Other aspects to be considers in duty of wages includes:-

- date of payment
- quantum
- availability of work
- bonus
- illness
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Why Study Employment Law?

Common Law Duties of Employers

ii. Duty to provide work – It is a duty of employer to

assigned or provide the work/tasks to their employee. An
employer has the power to give orders to employees and
expect them to be obeyed.

▪ The law has also recognized that the employer must

provide work in certain exceptional circumstance.
- where employment is essential to provide a reputation
for future employment.
- where remuneration depends on the amount of work
(i.e. sales commission).

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Why Study Employment Law?

Common Law Duties of Employers
iii. Duty to Indemnify – All expenses, losses and
liabilities incurred by an employee in the course of
duty must be indemnified except where:-
- The employee knew that they were doing an
unlawful act.
- The employee knew that the employer has no
right to give the order in question.

iii. Duty of care

iv. Duty to treat the employee with respect and
trust
v. Duty to give testimonials and references.

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Why Study Employment Law?

Common Law Duties of Employees

❑ The main employees duties are obedience, fidelity and

care and skill.
• Obedience* – the employee expected to obey the
orders/ instructions given by the employer.
• Fidelity – the employee must serve their employer in a
good faith, must act in a manner to protect their
employer’s interest, not make profits at his or her
employer’s expense, not disclosing confidential
information to other irrelevant/ unauthorized individuals
and use his/ her employer’s time for their own self-
serving purposes.

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Why Study Employment Law? –

Common Law Duties of Employees

• Care and skill – the employee is expected to carry out

their tasks and achieve a standard skill and competence
that can reasonably be expected of someone with their
experience and training, including not to be unreasonably
cause injury or damage in the course of doing their work.

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Question and Answer

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