Malaysia: Employee Rights

Original authors: Lim Pei Yuan, Michael Chai & Co.

Summary

• The main piece of legislation that provides employee rights for employees is the Employment Act 1955 (West Malaysia and Federal Territory of Labuan), Labour Ordinance Sabah Cap 67 (Sabah) and Sarawak Labour Ordinance Cap. 76 (Sarawak). (See General)
• There are various statutory rules on working time, but certain groups of employees are excluded and/or entitled to different statutory rules in certain circumstances. (See Hours of work)
• There are statutory rules on rest breaks and periods, but these rules apply only to some employees. (See Rest breaks and rest periods)
• There are no general restrictions on Sunday working. (See Sunday work)
• There are statutory rules on annual leave and public holidays, but these apply only to some employees. (See Holiday and holiday pay)
• Pregnant employees and new mothers have various rights. Qualifying employees are entitled to 98 days of maternity leave (60 days in the state of Sabah and Sarawak). (See Maternity and pregnancy rights)
• Employers have no statutory obligation to grant parental leave to employees. (See Parental leave)
• Paternity leave schemes are only available in West Malaysia and the Federal Territory of Labuan.  A qualifying male employee may take up to seven consecutive days of paternity leave. (See Paternity leave)
• Part-time employees generally have the same statutory entitlements as full-time employees. (See Part-time workers)
• Employees on fixed-term contracts have the same statutory entitlements as employees on open-ended contracts. (See Fixed-term workers)
• There are no statutory rules regarding temporary agency workers. (See Temporary agency workers)
• Employers must ensure they comply with the relevant foreign employment law when they transfer employees overseas. (See Posted workers)
• The employment contract of an employee in an undertaking or part of an undertaking that has been transferred may continue if the new owner makes a new offer within seven days of transfer. (See Transfer of business undertakings)
• Employees' wages and salaries have priority over other unsecured debts in the event that the employer becomes insolvent, up to a certain limit. (See Insolvency of the employer)
• There are no statutory rules governing disciplinary and grievance procedures. Members of trade unions are entitled to be represented by their union officer. (See Disciplinary and grievance procedures)
• Employers are not obliged to draw up internal rules, but employers are encouraged to do so. (See Internal rules)

• There are no statutory rules on what constitutes bullying, but employers must ensure the health, safety and welfare of employees in the workplace. (See Bullying)

• There are various rules regarding the collection, use and disclosure of personal data about an individual. (See Data and privacy protection)
• Organisations in certain industries are required to have a whistleblowing policy. (See Whistleblowing)
• There are no statutory regulations on the right to disconnect. (See Right to disconnect)