Workers’ Rights ( Know your rights: Malaysia Employment Act 1955)

Whether you are employer or employee in Malaysia, the Employment Act 1955 is a very
important act related to your employment.

Below is a summary of some of the important points in that act:

1. The Malaysia Employment Act 1995 is applied to Peninsular Malaysia and Labuan only.
For Sabah and Sarawak, they are governed by their respective Labour Ordinance.
2. Either party to a contract of service may at any time give a termination notice in writing,
and the notice period shall not less than:
3. 4 weeks for employment less than 2 years
4. 6 weeks for employment between 2 to 5 years
5. 8 weeks for employment more than 5 year
6. The notice period above is minimum requirement, which can be longer in the actual
employment contract, and is important for short notice compensation serving, especially
when Voluntary Separation, Retrenchment, Early Termination, etc. occur.
7. Termination without notice nor compensation can happen in the event of any wilful
breach by the other party of the employment contract.
8. Employer may dismiss, downgrade or suspend up to 2 weeks after due inquiry to the
employee, on the grounds of misconduct or inconsistent in fulfilment of service.
9. Employee may terminate without notice when threaten by danger, voilence or disease.
10. Contract is deemed broken by employer if he fails to pay wages not later than the 7th day
after the wage period.
11. Contract is deemed broken by employee if he has been continuously absent from work
for more than 2 consecutive working days without prior leave from his employer, unless
he has a reasonable excuse for such absence and has informed or attempted to inform his
employer of such excuse prior to or at the earliest opportunity during such absence.
12. Wages is not payable during the period when employee is imprisoned or attending to a
court otherwise than as a witness on his employer's behalf.
13. No deduction of wages can be made by employer other than:
14. Deductions to the extent of any overpayment of wages made within 3 months of the
mistake.
15. Deductions for the indemnity due to the employer by the employee.
16. Deductions for the recovery of advances of wages.
17. Deductions authorized by written law, such as EPF, SOCSO, PCB, etc.
18. Deductions upon employee's written request, in respect of the payments to a registered
trade union or co-operative thrift and loan society of any sum of money due to the trade
union or society by the employee on account of entrance fees, subscriptions, instalments
and interest on loans, or other dues.
19. Deductions upon employee's written request, in respect of payments for any ESOS
shares.
20. Deductions upon employee's written request, in respect of payments to a third party on
behalf of the employee.
21. Deductions upon employee's written request, in respect of payments for the purchase by
the employee of any goods of the employer's business offered for sale by the employer.
22. Deductions in respect of the rental for accommodation and the cost of services, food and
meals provided by the employer to the employee 'at the employee's request or under the
terms of the employee's contract of service.