Labour Law

The Employment Act 1955 is the principal legislation governing the relationship between employers and employees in Peninsular Malaysia. It serves as the main guideline in determining the welfare, rights, and responsibilities of both employees and employers.

Key Provisions

Working Hours

• Employees are entitled to normal working hours not exceeding 45 hours per week.

Annual Leave

• Less than 2 years of service: 8 days
• 2–5 years of service: 12 days
• More than 5 years of service: 16 days

Sick Leave

• Less than 2 years of service: 14 days
• 2–5 years of service: 16 days
• More than 5 years of service: 22 days

Hospitalisation Leave

• Up to 60 days.

Maternity Leave

• 98 consecutive days, including rest days and public holidays.
• Eligible for maternity allowance provided that the employee:
• • Has worked for at least 90 days in the 9 months prior to confinement
  • Has fewer than 5 living children

Paternity Leave

• 7 consecutive days, including rest days and public holidays.
• Applicable for up to 5 births, regardless of the number of wives.
• Conditions: legally married, and the employer must be notified of the wife’s pregnancy at least 30 days before the expected confinement or as soon as possible after birth.

Minimum Wage

• Ensures that all employees receive the minimum wage set by the Government.

Termination Protection

• Regulates the management of employee termination and ensures that the rights and welfare of employees are protected.

Reference: Jabatan Tenaga Kerja Semenanjung Malaysia

The Sabah Labour Ordinance is the principal labour legislation enforced specifically in the state of Sabah. It aims to protect employees’ rights and ensure fair employment relations between employers and employees.

Key Provisions

Working Hours

• Employees are entitled to normal working hours not exceeding 45 hours per week.

Annual Leave

• Less than 2 years of service: 8 days
• 2–5 years of service: 12 days
• More than 5 years of service: 16 days

Sick Leave

• Less than 2 years of service: 14 days
• 2–5 years of service: 16 days
• More than 5 years of service: 22 days

Hospitalisation Leave

• Up to 60 days.

Maternity Leave

• 98 consecutive days, including rest days and public holidays.
• Eligible for maternity allowance provided that the employee:
• • Has worked for at least 90 days in the 9 months prior to confinement
  • Has fewer than 5 living children

Paternity Leave

• 7 consecutive days, including rest days and public holidays.
• Applicable for up to 5 births, regardless of the number of wives.
• Conditions: legally married, and the employer must be notified of the wife’s pregnancy at least 30 days before the expected confinement or as soon as possible after birth.

Minimum Wage

• Ensures all employees receive the minimum wage set by the Government.

Termination Protection

• Regulates the management of employee termination and safeguards employees’ rights and welfare.

Reference: Jabatan Tenaga Kerja Sabah

The Sarawak Labour Ordinance is the principal legislation governing the relationship between employers and employees in the state of Sarawak.

Key Provisions

Working Hours

• Amended from 48 hours per week to 45 hours per week.

Sick Leave

• 14 days per year.

Hospitalisation Leave

• Up to 60 days per year.

Maternity Leave

• 98 consecutive days, including rest days and public holidays.
• Eligible for maternity allowance provided that the employee:
• • Has worked for at least 90 days in the 9 months prior to confinement
  • Has fewer than 5 living children

Paternity Leave

• 7 consecutive days, including rest days and public holidays.
• Applicable for up to 5 births, regardless of the number of wives.
• Conditions: legally married, and the employer must notify the wife’s pregnancy at least 30 days before the expected confinement or as soon as possible after birth.

Reference: Jabatan Tenaga Kerja Sarawak