Employment Law in Malaysia
Employment Law
Leave Entitlement in Malaysia
Know Your Leave Policy As an employee in Malaysia, you are entitled to six (6) different kinds of statutory leave provided under the Employment Act 1955. Statutory leave is the legal minimum amount of paid leave that all employees are entitled to from their employer in a year. Besides the minimum leave outlined in the act, other types of leave, determined by industry practice and policy, vary among companies. Leave...
Employment Law
Resigning Without Notice – Legal Considerations
Are you considering resigning without notice from your existing job? Has an employee left your company without giving notice? We’ll cover these topics and the potential legal considerations in this article. At some stage in your career, you might consider switching jobs or quitting for various reasons. Leaving a current job can be stressful, and it requires great courage to do so. This raises the issue of whether or not...
Employment Law
Key Features of a Solid Employment Contract
Employee management is the most critical and challenging aspect of running a business, as employees are a company’s most precious asset. Employment Act 1955 (“EA”) treats the employer-employee relationship as contractual in Malaysia. Therefore, at the beginning of the relationship, an employment contract will be signed to mark the start of the new relationship. These employment contracts must comply with existing labour laws, including the EA, passed to create certain...
Employment Law
Retirement Age in Malaysia
In Malaysia, employers can retire their employees after the employees reach the minimum retirement age set by the law. This article will explore the law on the retirement age of Malaysian private-sector workers. Here are six fundamental points to know about the minimum retirement age in Malaysia. 1. The Minimum Retirement Age Act 2012 The minimum retirement age in Malaysia is governed and regulated under the Minimum Retirement Age Act...
Corporate Law
Hierarchy of Courts in Malaysia
In the governing framework of Malaysia, three critical pillars exist: the Executive, Legislative, and Judiciary branches. The judiciary is the court system that decides legal disputes, defends the law, and applies it in legal cases. In every nation, the judiciary plays a crucial role in deciphering and administering the law and resolving disputes between the citizens as between the citizens and the state. The judicial system is the most expensive...
Employment Law
Latest Amendment to the Malaysian Employment Act
Employment Act 1995 (“EA) is the primary legislation in Malaysia that outlines the legal rights and responsibilities of both employers and employees. Malaysia’s EA has undergone several amendments, which have been critically important to the country’s employment landscape. The most recent amendment came in 2022, and its enforcement set in on January 1, 2023. Who is covered under the EA? As it stood before the change, EA only concerned individuals...
Criminal Law
Sexual Harassment in Workplace
Understanding the seriousness of sexual harassment No matter in which industry or sector, sexual harassment in the workplace is widely reported and regarded as a serious misconduct that takes a toll on one’s dignity, regardless of its form. It affects the victim physically and mentally in ways that may: decreases one’s motivation to work creates anger and a hostile environment disrupts one’s daily life affects career and ability to perform...
Employment Law
Constructive Dismissal in Malaysia
The Industrial Relations Act 1976 (LRA), states that when an employee considers themselves dismissed without just cause or excuse by the employer, they may make representations to the Director-General to be reinstated. But what is the position if the employee is not dismissed, but finds themselves in a situation where they have no choice but to resign due to the conduct or decisions of the employer? The LRA does not...
Employment Law
What Constitutes Unfair Dismissal 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...