EMPLOYMENT

LAW
TOPIC LEARNING OUTCOME
At the end of this topic the students able to get the
overview about the employment law in Malaysia.
 Trade
union

3 main
parties in
Industrial
Relations

employee employer
 Disiplinary procedure and
termination of contract of
employment

3 mains
aspects of
industrial
relation Relationsho
p between
Employme
employers
nt law
and Trade
Union
 Government

International
Bodies
3 paries
involved in
Industrial
Relations
System

employees employer
s
WHAT ARE THE LAWS GOVERNING EMPLOYMENT IN
MALAYSIA ?

• The principal legislation 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 Labour Ordinance (Cap. 76) and
Sabah Labour Ordinance (Cap. 67) or other written laws in
force in Sarawak or Sabah

• EXERCISE:
Draw a MIND-MAP of the laws governing employment in
Malaysia and their functions.
• Pensions Act 1980
• Employees Social Security Act 1969 (ESSA)
• Employees Provident Fund Act 1951
• Occupational Safety and Health Act 1994 (OSHA)
• Private Employment Agencies Act 1981
• Human Resources Development Act 1992
• Factories and Machinery Act 1967
• Petroleum (Safety Measure) Act 1984
• Trade Unions Act 1959
• Workmen's Compensation Act 1952
• Industrial Relations Act 1967
• Wages Council Act 1947
• Employment Information Act 1953
• Employment (Restriction) Act 1968
• Worker's Minimum Standards of Housing and Amenities Act
1990
• Weekly Holidays Act 1950
• Children and Young Persons (Employment) Act 1966
 EMPLOYMENT LAW
• Private sector- Employment Act 1955 and other
statutes
• Public sector – subject soley to the government’s
General Orders. Employment
Act 1955

3
principal
legislation
s

Industrial
Trade Unions
Relation Act
1967 Act 1959
 Hours of work

Wages and
Remunerations

Rest days
Terms and
Conditions
provided by the Annual public holidays
Employment Act
1955
Annual leave, sick leave, and
maternity leave for female workers

Termination and dismissal of

workers

And others
 INDUSTRIAL RELATIONS ACT 1967
• Encompasses regulations and guidelines in the relationship
between employers and trade union.
• The principles of the IRA 1967
1. The right to join trade unions
2. The right of recognition from the employer in relation to
workers trade unions.
3. The right to collective agreement so that negotiations can
be held between the trade unions and employers.
4. The right to dispute resolution (settlements in relation to
problems and disputes arising between the employer and
the employee).
MINISTRY OF HUMAN RESOURCES
• Missions:-
1. To develop a workforce that is productive, informative, discipline, caring
and responsive to the changing labor environment towards increasing the
economic growth and hence create more job opportunities.
2. To encourage and maintain conducive and harmonized industrial relation
between employers, employees and trade unions for the nation's economic
development and wellness of people.
3. To uphold social justice and ensure harmonious industrial relations through
solving industrial dispute between employer and employee and awarding
collective agreement.
4. To ensure trade unions practice democracy, orderly and is responsible to
assist achieving the objective of industrial harmony.
5. To be the leader in development of nation's human resources.
6. To ensure safety and health of workforce is assured.
7. To develop skilled, knowledgeable and competitive workforce in a
harmonious industrial relations with social justice.
 Manpower Department

Department Of Labour

Department of Industrial
Relations
Ministry of
Human Resources
Department of Trade Unions

Department of Occupational
Safety and Health

National Vocational Trainning

Council