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CHAP 2: THE LEGAL ENVIRONMENT IN MALAYSIA - Coggle Diagram
CHAP 2:
THE LEGAL ENVIRONMENT IN MALAYSIA
DEFINITION
ACT are laws enacted by the parliament
ORDINANCES are laws enacted by the federal legislature
ENACTMENTS are laws enacted by State Legislative Assemblies
THE EMPLOYMENT ACT 1955
2 types of contract
contract of service
agreement between & employee and employer exist
fix working hours plan
tied with the employment law
contract for service
employee is on independent contractor
no fix working hours, depend on the individual
no employment law
Contract of service
an employee is employes under a contract of service also known as a contract of employment
such agreement can be oral, in writing, express or implied
sets minimum labor standards for workers and seek to protect them from exploitation
Labor Court
is a governmental judiciary body which rules on labor or employment-related matters and disputes
types of claim
maternity benefits
sick pay
termination benefits
public holiday pay
overtime payments
annual leave
Wages
defined as basic wages & all other payments due under the contract of service
annual bonus, overtime payments, commissions, and allowances
every employer shall pay to each of his employees not later than the 7th day after the last day of any wage period the wages, less lawful deductions
the minimum wages order 2020 is RM 1200 per month for Malaysia
Working Hours and Holidays
rest day
shall be allowed in each week
hours of work
The period of time during which one engages in paid work.
foreign workers
also entitled to same benefits as locals.
any discrimination relating to employment matters, they can make a complaint at the Labor Department
CHILD & YOUNG PERSONS (EMPLOYMENT) ACT
malaysian law doesnt prohibit children from being employed.
child - under age of 16
young person - 16-18 y/o
young people are not permitted to work between 8.00p.m and 6.00 p.m.
they may not work > 7 hours in one day.
THE EMPLOYEES PROVIDENT FUND
to ensure workers have a funds available on their retirement
membership
all employee are required to become a member of the Fund
contributions
employers required under the law to provide the employee with a pay slip
withdrawals
no withdrawals are permitted from the first biggest account until the employee reaches the age of 55
THE EMPLOYEES SOACIAL SECURITY ACT 1969
applies to employees throughout all of Malaysia in all industries who earns less than RM 3000 per month
the principle" once in, always in"
SOCSO
2 schemes
employment injury insurance scheme
invalidity pension scheme
THE WORKMEN COMPENSATION AC
T
important to foreign workers in the country except for domestic servants
enforced by Labor Department
inform within 10 days of its occurance
if the worker dies, the entitlement is given to their dependents
THE OCCUPATIONAL SAFETY & HEALTH ACT 1994
to ensure that all parties at the workplace are held equally responsible for safety & health
National Council for OSH
consisting between 12 & 15 members appointed by the Minister of HR
tripartite which involved representive from employers, employees and the Ministry
THE TRADE UNIONS ACT 1959
administreted by the Trade Unions Department
permitting workers to join trade unions
MTUC
most representive workers organization in the country
it has 3 main objectives
the oldest trade union federation in Malaysia
THE INDUSTRIAL RELATION ACT 1967
enforced by the Industrial Relations Department
protects the legitimate rights of employers & employees and their trade unions.
to provide systems which will encourage industrial harmony
HUMAN RESOURCES DEVELOPMENT BHD ACT 2001
to ensure employers conduct training for their workers so as to upgrade their skills & abilities
led to the establishment of the HRDF
