Navigating the complex world of employment laws can be challenging for employers, especially in a dynamic and evolving environment like Malaysia. This guide provides a comprehensive overview of key aspects of Malaysian employment laws, offering employers clarity and insight into their responsibilities and obligations.
Working Hours:
Standard work hours: Effective January 2023, the standard workweek in Malaysia is 45 hours, with a maximum of 8 hours per day.
Overtime: Overtime work exceeding the standard hours must be compensated at a higher rate, typically 1.5 times the regular pay.
Rest days: Employees are entitled to one paid rest day per week, usually on Sundays.
Leave Policies:
Annual leave: Employees accrue annual leave based on their length of service, starting with 8 days for the first year and increasing with each subsequent year.
Sick leave: Employees are entitled to 14 days of paid sick leave per year, subject to verification by a medical practitioner.
Public holidays: Employees are entitled to paid leave for all public holidays declared by the government.
Maternity leave: Female employees are entitled to 60 days of paid maternity leave.
Paternity leave: Male employees are entitled to 7 days of paid paternity leave.
Termination Procedures:
Notice period: The required notice period for termination of employment depends on the employee's length of service and can range from one week to two months.
Severance pay: Employees are entitled to severance pay based on their length of service and salary.
Probationary period: During the probationary period (typically 3 months), either party can terminate the employment without notice or severance pay.
Fairness and due process: Employers must ensure that termination procedures are fair and follow due process, including providing the employee with a reason for termination and the opportunity to defend themselves.
Additional Key Employment Laws:
Minimum wage: The minimum wage in Malaysia varies by state and sector. Employers must ensure that they are paying their employees at least the minimum wage.
Social security contributions: Both employers and employees are required to contribute to the Employees Provident Fund (EPF) and the Social Security Organization (SOCSO).
Protection against discrimination: Discrimination in employment based on factors such as race, religion, or gender is prohibited.
Occupational safety and health: Employers must ensure that their workplaces are safe and healthy for their employees.
Conclusion:
As an employer in Malaysia, staying informed and compliant with employment laws is crucial. By understanding your obligations regarding working hours, leave policies, termination procedures, and other key aspects, you can create a positive and productive work environment for your employees and avoid potential legal repercussions. Remember, consulting with legal or HR professionals can provide valuable guidance on specific matters and ensure compliance with the ever-evolving landscape of Malaysian employment laws.
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