Malaysia: Industrial relations

Original and updating author: Lydia Lai Syn Yi and Lim Pei Yuan, Michael Chai & Co.

See the legal services provided by the author of International > Malaysia, including any discounts/offers for subscribers.

Summary

• Industrial relations are regulated by legislation. (See General)
• The Federal Constitution guarantees freedom of association but allows Parliament to restrict this freedom on certain grounds. (See Trade unions)
• Collective bargaining between a trade union and the employer usually results in a collective agreement, which is legally binding on both parties. (See Collective bargaining and agreements)
• Generally, there are no statutory obligations on employers to inform or consult employees, employee representatives or trade unions. (See Informing and consulting employees - general)
• There is no statutory requirement for employers to inform or consult employees, employee representatives or trade unions in the event of collective redundancies. (See Informing and consulting prior to redundancies)
• There is no statutory requirement for employers to inform or consult employees, employee representatives or trade unions in the event of transfer of undertakings. (See Informing and consulting prior to transfers)
• Industrial action is permitted only if it is in furtherance of a trade dispute within the trade or industry in which the people taking part in the action work. (See Industrial action and picketing)