Employment Law in Malaysia

Employees’ right to earn their livelihood is guaranteed under Article 5 of the Federal Constitution. The term “livelihood” refers to how one obtains their source of income to buy the things they need and secure life’s necessities. A person’s job is the main source of their livelihood. One of the ways to deprive someone of this right to livelihood would be by unjustly and unfairly removing or terminating them from...

Overview For workers and employers in Malaysia, their relationship is governed by two main pieces of legislation: the Industrial Relations Act (IRA) 1967, as well as the Employment Act 1955. The basis for this law is fairness—trying to find a balance between giving employees security of tenure, and letting the employer retain the right to dismiss employees. The right process must be followed by any employer wishing to terminate staff;...