As a business owner in Malaysia, understanding and complying with employment laws is crucial for maintaining a positive work environment, protecting your employees' rights, and avoiding legal repercussions. This guide provides an overview of key aspects of Malaysian employment law, including minimum wage, leave entitlements, and termination procedures.
Minimum Wage:
The minimum wage in Malaysia is currently RM1,500 per month for Peninsular Malaysia and RM1,200 per month for Sabah, Sarawak, and Labuan.
Employers are obligated to pay their employees at least the minimum wage, regardless of their age, gender, or nationality.
The minimum wage is subject to periodic revisions by the government.
Leave Entitlements:
All employees are entitled to paid annual leave of 8 days per year after completing 12 months of service.
Additional leave entitlements may be included in employment contracts or according to collective agreements.
Employees are also entitled to sick leave, maternity leave, paternity leave, and other types of leave as mandated by Malaysian law.
Specific regulations govern the duration, payment, and notification procedures for each type of leave.
Termination Procedures:
Termination of employment must be carried out according to the Employment Act 1955 and other relevant laws.
The grounds for termination are outlined in the Act and include unsatisfactory performance, misconduct,redundancy, and retirement.
Employers must follow specific procedures for termination, including providing written notice, paying due compensation, and adhering to proper documentation requirements.
Failure to comply with proper termination procedures may expose employers to legal action and claims for compensation from employees.
Additional Important Considerations:
Employers are responsible for contributing to the Employees Provident Fund (EPF) and Social Security Organization (SOCSO) on behalf of their employees.
Employers must also comply with various regulations concerning working hours, overtime pay, and workplace safety and health.
Staying updated with amendments to employment laws and seeking professional legal advice when necessary is crucial for ensuring compliance and avoiding legal issues.
Resources:
Ministry of Human Resources (MOHR): https://www.mohr.gov.my/index.php/en/
Department of Labour Peninsular Malaysia (JTKSM): http://jtksm.mohr.gov.my/ms
Employees Provident Fund (EPF): https://www.kwsp.gov.my/
Social Security Organization (SOCSO): https://www.perkeso.gov.my/
Disclaimer: This information is provided for general knowledge only and does not constitute legal advice. Always consult with a qualified lawyer for specific guidance on Malaysian employment laws and your individual situation.
Comments