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Malaysia

Employee Rights and Protections

Explore workers' rights and legal protections in Malaysia

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Termination

In Malaysia, the Employment Act 1955 is the primary law governing employment. For an employer to dismiss an employee, there must be a "just cause or excuse". Lawful grounds for dismissal include misconduct, poor performance, redundancy, or other grounds such as the expiration of a fixed-term contract or retirement.

Lawful Grounds for Dismissal

Misconduct can include dishonesty, insubordination, willful damage to company property, habitual absence, or serious breaches of work rules. Poor performance refers to persistent substandard work despite warnings and opportunities to improve. Redundancy means the role is no longer necessary to the business's operations due to factors like restructuring or economic downturn.

Notice Requirements

The Employment Act 1955 stipulates minimum notice periods for termination, depending on the employee's length of service. For less than two years of service, four weeks' notice is required. For two to five years of service, six weeks' notice is required. For five years or more of service, eight weeks' notice is required. Employers can provide longer notice periods or payment in lieu of notice if outlined in the employment contract.

Severance Pay

Malaysian labor laws mandate severance pay under certain conditions. If an employee is dismissed due to redundancy or the company's closure, and they've worked for over a year, they are generally entitled to severance pay. The amount varies according to length of service. If an employee is dismissed for other reasons, severance pay may be payable depending on the circumstances and terms in the employment contract.

Additional Important Points

If an employer terminates for misconduct, it's considered best practice to conduct a fair domestic inquiry to establish the facts before dismissal. If an employee resigns due to the employer breaching their contract in a significant way, it may be considered constructive dismissal, and they may be entitled to claim remedies.

Discrimination

In Malaysia, there are several laws and constitutional provisions that address discrimination. Article 8 of the Federal Constitution provides for equality before the law and prohibits discrimination on the grounds of religion, race, descent, place of birth, or gender. Additionally, Section 60L of the Employment Act 1955 specifically prohibits workplace discrimination based on religion, race, sex, gender, marital status, pregnancy, or trade union membership.

Protected Characteristics

The anti-discrimination laws in Malaysia generally protect against discrimination based on the following:

  • Race
  • Religion
  • Sex
  • Gender
  • Pregnancy
  • Marital status
  • Disability (addressed in the Persons with Disabilities Act 2008)
  • Trade union membership

Redress Mechanisms

Individuals who experience discrimination in Malaysia can seek redress through various means:

  • Workplace Grievance Procedures: If the issue arises in the workplace, start by utilizing any internal grievance procedures established by the employer.
  • Labour Department: Complaints related to employment discrimination can be lodged with the Department of Labour (Jabatan Tenaga Kerja).
  • Industrial Court: Seek remedies for employment-related discrimination through the Industrial Court.
  • Human Rights Commission of Malaysia (SUHAKAM): SUHAKAM is a national human rights institution that can receive and investigate complaints of human rights violations, including discrimination.
  • Civil Courts: File civil lawsuits for discrimination outside of the employment context.

Employer Responsibilities

Employers in Malaysia have a duty to uphold anti-discrimination principles:

  • Non-discrimination Policies: Develop and implement clear policies prohibiting discrimination and harassment in the workplace.
  • Fair Hiring and Promotion: Ensure merit-based selection and promotion practices, free from bias based on protected characteristics.
  • Harassment Prevention: Take proactive steps to prevent and address harassment in the workplace.
  • Complaint Handling: Establish accessible internal mechanisms to handle discrimination complaints, and investigate all allegations promptly and fairly.
  • Awareness and Training: Educate employees on anti-discrimination laws, company policies, and appropriate workplace conduct.

Working conditions

In Malaysia, the Employment Act 1955 stipulates that the maximum working hours should not exceed 45 hours per week and 8 hours per day. However, overtime work is permissible, provided that employers compensate employees at a rate of at least 1.5 times their hourly wage. There are, however, limitations on the amount of overtime an employer can require. For shift work, the maximum working hours are 48 hours per week, averaged over a three-week period.

Rest Periods

Employees are entitled to a minimum of one full rest day per week as per the Employment Act 1955. Typically, employees receive a meal break of at least 45 minutes after working for around five consecutive hours. Malaysia observes several public holidays each year, and employees are entitled to paid time off on these days, or overtime pay if required to work.

Ergonomic Requirements

While Malaysia doesn't have specific legislation solely focused on ergonomics, the Occupational Safety and Health Act 1994 (OSHA) places a general duty on employers to provide a safe and healthy work environment. This includes identifying and addressing ergonomic risks such as repetitive strain, awkward postures, and heavy lifting. Employers are also required to provide adjustable furniture and equipment to promote good posture and minimize strain. Additionally, they must educate employees on proper ergonomics, safe lifting practices, and recognizing signs of musculoskeletal strain caused by ergonomic risk factors.

Health and safety

In Malaysia, the Occupational Safety and Health Act 1994 (OSHA 1994) is the primary legislation that governs the safety and health of the workplace. This legislation outlines the obligations of employers, the rights of employees, and the enforcement agencies involved.

Employer Obligations

Under OSHA 1994, employers have a significant responsibility to ensure workplace safety and health. Here's a breakdown of some key obligations:

  • Risk Assessment: Employers must conduct comprehensive risk assessments to identify potential hazards in the workplace.
  • Safe Work Procedures: Employers are required to develop and implement safe work procedures to minimize risks and ensure employees understand how to perform their tasks safely.
  • Provision of Safe Equipment: Employers are required to provide employees with personal protective equipment (PPE) appropriate for the identified hazards.
  • Training and Information: Employees must be adequately trained on safety procedures, hazard awareness, and proper use of PPE.
  • Accident Reporting: Employers must report any occupational accidents, dangerous occurrences, occupational poisoning, or occupational diseases to the nearest Department of Occupational Safety and Health (DOSH) office.
  • Maintenance of Workplace: Employers have a duty to maintain the workplace in a safe and healthy condition. This includes ensuring proper ventilation, lighting, and sanitation.

Employee Rights

Employees also have crucial rights under OSHA 1994:

  • Right to a Safe Workplace: Employees have the right to work in a safe environment free from foreseeable risks to their health and safety.
  • Access to Information and Training: Employees have the right to access information on workplace hazards, safety procedures, and receive proper training.
  • Refusal of Unsafe Work: Employees have the right to refuse work they believe is unsafe, provided they have reasonable justification.
  • Reporting of Unsafe Conditions: Employees have the right to report unsafe work conditions or practices to their employer or the relevant authorities.

Enforcement Agencies

The Department of Occupational Safety and Health (DOSH) is the primary enforcement agency for OSHA 1994. DOSH inspectors have the authority to:

  • Conduct inspections of workplaces to ensure compliance with the Act.
  • Issue improvement notices if they identify unsafe work practices.
  • Issue prohibition notices to stop any activity posing imminent danger to employees.
  • Take legal action against employers who violate the Act.
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