Employment Act 1955

The Employment Act 1955 is the principal legislation governing employment practice in Malaysia. Since the
majority of employees fall under the ambit of this Act, it is imperative that the employers understand and comply with the obligations mandated by the Act.

At this program's conclusion, participants should be able to acquire a good understanding of the Employment Act. They will then be able to apply the legal aspects of the Acts to their human resource management system and formulate policies that will enhance a more harmonious employer- employee relationship.

• Business owner
• HR / Admin Managers
• HR / Admin Executives
• Personal Administration
• Officers

1. The Contract of Service
o Contracts of Service are not unfettered.
o Employer’s Rights and Employee's Rights.
o Employer and Employee cannot contract out of the Law.

2. Types of Contracts of Service
o Probationary, Permanent, Fixed-Term, Task Based and Part-time.
o Implications for Employers.

3. Contract of Service and Contract for Service
o Understanding the Difference.
o Implications for the Employer through ‘Contract Tests’.

4. Contractors and Principals
o Liability of Principals.

5. Understanding definitions and application of key operative terms in the Act
o Employee.
o Wages, Day, Hours of Work, Normal Hours of Work.
o Ordinary Rate of Pay, Average True Days Wages.

6. Termination Simpliciter
o Notice of Termination of Contract vide Section 12.
o Termination for Wilful Breach under Section 13 (2).
o Employer’s action for poor Performance and Incompetence.

7. Employee Misconduct
o Action by Employer for misconduct under Section 14 (2).
o Deemed Breach of Contract, vide application of Section 15 (2).

8. Wages
o Understanding the term Wages under Section 2 (1).

9. Application of term ‘wages’
o Under the First Schedule.
o Calculation of Ordinary Rate of Pay under Part 12.
o Determining Unpaid Leave and Absence.
o Determining ‘average true days’ wages as per Termination and Lay Off Benefits Regulations 1980.

10. The Law on Payment of and Deductions from Wages
o Part IX of the Act.
o Maternity Leave.
o Eligibility for Maternity Protection.

11. Application of Benefits under Part 12 of the Act
o Maximum hours of work and Rest Days
o Annual Leave and Public Holidays
o Medical Leave and Hospitalization
o Employers Rights in managing the benefits

12. Employer’s Obligations under Part XIII
o Powers of the Director General under Section 69
o Definition of employees extended to those earning RM5,000 and below
o Setting aside decision made by Employer under Section 14(1)
o Consequential Orders
o Employer's Right of Appeal to High Court

13. Employment Regulations 1957
o Rate of Pay
o Employer’s obligations

14. Employment (Termination and Lay-Off Benefits) Regulations 1980
o Exclusions under Regulation 4
o Meaning and Application of ‘Lay Off’
o Application of formula under Regulation 6


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