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INDUSTRIAL COURT

EPEE311 Industrial Relations

History
The Industrial Court was established in 1940 under the

Industrial Court of Inquiry Rules but it did not function due to the Japanese Occupation. During the Emergency period, trade union activities were carried out illegally as many trade union leaders were influenced by communist subversive elements. The Industrial Court Ordinance 1948 was enacted to establish an arbitration system. For the first time, trade unions were legally registered. The Industrial Court at that time was a voluntary arbitration body, which heard disputes on an ad hoc basis. Between 1948 1964, only 4 disputes were heard.

History (cond..)
The voluntary arbitration system was abolished with the

introduction of new regulations. The Essential (Prohibition of Strikes and Prescribed Industrial Action) Regulations 1965 and the Essential (Arbitration in the Essential Services) Regulations 1965 were made under the Emergency (Essential Powers) Act 1964 to prohibit any industrial action in both the public and private sectors which are classified as essential services.

History (cond..)
In 1967, the Industrial Relations Act 1967 was enacted

whereby compulsory arbitration was introduced. Any trade dispute which is not resolved through conciliation may be referred to the Industrial Court for arbitration. The present Industrial Court was established under the Industrial Relations Act 1967. The Industrial Relations Act 1967 has been amended in 1969, 1971, 1975, 1976, 1977, 1980, 1989, 1990 and 2007. All those amendments did not affect the basic provisions.

Vision
To be a leading organisation in promoting industrial

harmony.

Objective
Established for creating a harmonious industrial

environment through the process of arbitration and the decisions of the Court (Award) consistent within Industrial Relations Act 1967.

Function
To hear and hand down decisions or awards in industrial

disputes referred to it by the Minister or directly by the parties. To grant cognisance to the collective agreements which have been jointly deposited by the employers/ trade union of employers and trade union of employees.

Mission
To uphold social justice and maintain industrial harmony

through expeditious agreements.

court

awards

and

collective

Types of Cases Referred to the Court


(a) By the Honourable Minister of Human Resourses i) Section 20(3) Industrial Relations Act 1967 (Dismissal) ii) Section 26(1) Industrial Relations Act 1967 (Trade Dispute) iii) Section 26(2) Industrial Relations Act 1967 (Trade Dispute) iv) Section 8(2A) Industrial Relations Act 1967 (Victimisation)

Types of Cases Referred to IC


(b) Direct applications to the Industrial Court i) Section 56(1) Industrial Relations Act 1967 (Non Compliance of Award/Collective Agreement) ii) Section 33(1) Industrial Relations Act 1967 (Interpretation of Award/ Collective Agreement) iii) Section 33(A) Industrial Relations Act 1967 (Points of law) iv) Section 33(2) Industrial Relations Act 1967 (Variation of Award/Collective Agreement)

What is the difference between the Industrial Court and the Labour Court?
Industrial Court deals with individual disputes arising

from the employer-employee relationship (such as dismissals) and trade disputes between trade unions and employers (such as transfers, collective agreements) and breaches of rights and obligations imposed under the Industrial Relations Act 1967 The Labour Court deals mainly with recovery of wages and other monies and employment benefits provided to employees under the Employment Act 1955 such as overtime pay, maternity allowance, salary in lieu of notice of termination and termination benefits.

What is the difference between the Industrial Court and the Labour Court?
The Labour Court is not a statutory tribunal like the

Industrial Court but refers to the hearing conducted by a Labour Officer of the Labour Department into complaints by employees. Employees whose monthly wages are RM1, 500 and below and other categories of employees who are entitled to the benefits in the Employment Act 1955 can file their claims in the Labour Court. Employees who fall outside the scope of the Employment Act 1955 but whose monthly salary does not exceed RM5, 000 may also seek the assistance of the Labour Court for recovery of salary or other monies due and payable by their employers under their individual contracts of service.