MGL Empire

UNDERSTANDING THE LAW AND APPLICATION OF EMPLOYMENT ACT 1995

OVERVIEW
The Employment Act 1955 is the principal legislation governing employment practice in Malaysia. Since the
majority of employees fall under the ambit of this Act, it is imperative that the employers understand and
comply with the obligations mandated by the Act.

DURATION

2 Days

TARGET GROUP

• HR Practitioners
• Employers of Part-timers
• Any one who has a working knowledge of the Employment 1955.

OBJECTIVES
This two days programme is crafted to provide participants with a thorough knowledge and understanding of
the Act, complemented by ‘hands on’ practical guidelines and examples for worksite implementation.

■ This is to ensure competency in compliance to the requirements of the law and the contract of employment

■ To ensure the understanding of the rights and obligations of both employer and employee.

■ To avoid the costly consequences of non-compliance and promote harmony in the work environment

■ To enable the organization to focus on the job of achieving growth, competitiveness and excellence with
minimal hindrances and deviation of energies

METHODOLOGY

This 2 days program provides an update on the impending amendments to the Employment Act that has
already been tabled in Parliament.

Making the laws ‘come alive’ through examples, lively interaction, FAQ’s and topical Q&A sessions, with
relevant case laws. Each participant would be given a copy of the Employment Act 1955 and comprehensive
manual with explanatory notes and case law.
COURSE OUTLINE

Module Lessons

 Contracts of Service are not unfettered.

1. The Contract of Service
 Employer’s Rights and Employee's Rights.
 Employer and Employee cannot contract out of the Law.

2.Types of Contracts of  Probationary, Permanent, Fixed-Term, Task Based and Part-time.

Service  Implications for Employers.

3. Contract of Service and  Understanding the Difference.

Contract for Service  Implications for the Employer through ‘Contract Tests’.

4.Contractors and  Liability of Principals

Principals

5. Understanding  Employee.
definitions and  Wages,Day, Hours of Work, Normal Hours of Work.
application of key  Ordinary Rate of Pay, Average True Days Wages.
operative terms in the
Act

6. Termination  Notice of Termination of Contract vide Section 12.

Simpliciter  Termination for Wilful Breach under Section 13 (2).
 Employer’s action for poor Performance and Incompetence.

7. Employee Misconduct  Action by Employer for misconduct under Section 14 (2).

 Deemed Breach of Contract, vide application of Section 15 (2).

8. Wages  Understanding the term Wages under Section 2 (1).

9. Application of term  Under the First Schedule.

‘wages’  Calculation of Ordinary Rate of Pay under Part 12.
 Determining Unpaid Leave and Absence.
 Determining ‘average true days’ wages as per Termination and Lay Off
Benefits Regulations 1980.

10. The Law on Payment  Part IX of the Act.

of and Deductions from  Maternity Leave.
Wages  Eligibility for Maternity Protection.

11. Application of  Maximum hours of work and Rest Days

Benefits under Part 12 of  Annual Leave and Public Holidays
the Act  Medical Leave and Hospitalization
 Employers Rights in managing the benefits

12. Employer’s  Powers of the Director General under Section 69

Obligations under Part  Definition of employees extended to those earning RM5,000 and below
XIII  Setting aside decision made by Employer under Section 14(1)
 Consequential Orders
 Employer's Right of Appeal to High Court

13. Employment  Payment of Wages (s.25A)

(Amendment) Act 2010  Payment of Wages of Domestic
 Servants (new s.25B)
 Contractor for Labor (new s.33A)
 Maternity Protection (ss. 2, 40, 42)
 Public Holidays (s.60D)
 Employment of Foreign Employees (s.60K)
 Sexual Harassment (new Part XVA)