Public Engagement EA

LAWS OF MALAYSIA
PROPOSED AMENDMENT TO EMPLOYMENT ACT 1955 [ACT 265]
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ORIGINAL PROVISION PROPOSED AMENDMENT
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PART I PART I
PRELIMINARY PRELIMINARY
2(1) “contractor for labour” means a “contractor for labour” means-

person who contracts with a
principal, contractor or sub- (a) a person who contracts with a
contractor to supply the labour principal, to supply the labour
required for the execution of the required for the execution of the
whole or any part of any work which whole or any part of any work; or
a contractor or sub-contractor has
contracted to carry out for a (b) a person who contracts with a
principal or contractor, as the case contractor or sub-contractor to
may be; supply the labour required for
the execution of the whole or
any part of any work which a
contractor or sub-contractor has
contracted to carry out for a
principal or contractor, as the
case may be; or
(c) a person who contracts to

supply labour required for the
purpose of paragraph (a) and (b).
2(1) “domestic servant” means a person “domestic servant employee” means a

employed in connection with the person employed in connection with
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work of a private dwelling-house the work of a private dwelling-house

and not in connection with any and not in connection with any trade,
trade, business, or profession business, or profession carried on by
carried on by the employer in such the employer in such dwelling-house
dwelling-house and includes a and includes a cook, house-servant,
cook, house-servant, butler, child’s butler, child’s nurse, valet, footman,
nurse, valet, footman, gardener, gardener, washerman or
washerman or washerwoman, washerwoman, watchman, groom and
watchman, groom and driver or driver or cleaner of any vehicle
cleaner of any vehicle licensed for licensed for private use;
private use;
“forced labour” means the

Nil condition of any person who
provides labour or services by the
use of threat or deception, a
reasonable person in the position
of the victim would not consider
himself to be free:
(a) to cease providing the

labour or services; or
(b) to leave the place or area

where the victim provides
the labour or services.
2(1) “foreign domestic servant” means a “foreign domestic servant employee”
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domestic servant who is not a means a domestic servant employee

citizen or a permanent resident; who is not a citizen or a permanent
resident;
4 Appeals Appeals
Any person affected by any decision Any person affected by any decision
or order, other than an order or or order, other than an order or
decision under section 69, 69B, 69C, decision under section 69, 69B, 69C,
73 or subsection 81D(4), given or 73 or subsection 81D(4), given or
made by an officer appointed under made by an officer appointed under
subsection 3(2), may, if he is subsection 3(2), may, if he is
dissatisfied with such decision or dissatisfied with such decision or
order, within fourteen days of such order, within fourteen days of such
decision or order being decision or order being
communicated to him appeal in communicated to him appeal in
writing therefrom to the Director writing therefrom to the Director
General. General.
Nil PART IA
PRE-EMPLOYMENT
Nil Notification of vacancy and

placement, and advertising
vacancies
(1) The Director General may at any
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time require any employer to

furnish him any vacancy in the
manner and within the period as
determined.
(2) Any employer who fails to

comply with subsection (1)
commits an offence.
Nil Registration of Job Seekers
(1) Any person who wishes to

seek a job may register as
determined by the Director
General.
(2) For the purpose of

subsection (1), the Director
General may-
(a) within thirty days arrange for

an interview with the job
seeker;
(b) evaluate the jobseeker on

his qualification and any
training requirement that is
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needed to secure a job;
(c) facilitate to enhance the job

seeker’s skills; and
(d) arrange for an interview with

prospective employers.
For the purpose of this Part, “job

seeker” means any person who is
seeking for employment.
Nil Organising job fair or carnival
(1) No person shall organise a job

fair or carnival unless he has
obtained an approval as
General.
For the purpose of this section,

“job fair or carnival” means where
any person organises a
programme to recruit job seeker
for more than one employer.
(2) Notwithstanding subsection (1),

an employer may organise a job
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fair or carnival for filling his

vacancies in his establishment.
(3) Any person who fails to comply

with subsection (1) commits an
offence and shall, on conviction,
be liable to a fine not exceeding ten
thousand ringgit.
Nil Discrimination in pre-employment
(1) An employer shall not

discriminate against a job seeker
on the grounds of gender, religion,
race, disability, language, marital
status and pregnancy:
(a) in determining who should

be offered employment
including advertisement of
the vacancy; or
(b) in the terms or conditions on

which employment is
offered.
Provided that any distinction,

exclusion or preference in respect
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of a particular job based on the

inherent requirements thereof shall
not be deemed to be
discrimination.
(2) The Director General may

inquire into any complaint that an
employer practices discrimination
on the grounds of gender, religion,
race, disability, language, marital
status and pregnancy and the
Director General may issue to the
employer such directives as may
be necessary or expedient to
resolve the matter.
(3) An employer who fails to

comply with any directive of the
Director General issued under
subsection (2) commits an offence.
PART II PART II
CONTRACTS OF SERVICE CONTRACTS OF SERVICE
7C Nil Presumption as to who is

employee.
A person who works for or renders
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services to any other person is

presumed until the contrary is
proven to be an employee,
regardless of the form of the
contract, if any one or more of the
following factors is present-
(1) the manner of work is subject to

the control or direction of the other
person;
(2) the particular hours of work are

subject to the control or direction
of the other person;
(3) the person’s work constitute

integral part of the other person’s
business;
(4) the work is performed solely or

mainly for the benefit of the other
person;
(5) the person is provided with

tools, raw materials or work
equipment by the other person;
(6) payment of wages is made to
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the person at regular intervals of

time; or
(7) such wages constitutes the

person’s sole or principal source
of income.
10 Contracts to be in writing and to Contracts to be in writing and to

include provision for termination. include provision for termination.
(1) A contract of service for a (1) A contract of service for a

specified period of time exceeding specified period of time exceeding
one month or for the performance of one month or for the performance of a
a specified piece of work, where the specified piece of work, where the
time reasonably required for the time reasonably required for the
completion of the work exceeds or completion of the work exceeds or
may exceed one month, shall be in may exceed one month, shall be in
writing. writing.
(2) In every written contract of Remain

service a clause shall be included
setting out the manner in which such
contract may be terminated by either
party in accordance with this Part.
17B Nil Discrimination in employment.
(1) No employer shall

discriminate againts employees in
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respect of employment and

occupation on the basis of gender,
religion, race, or disabilities
unless such treatment is not
possible due to the inherent
requirements of the employment.
(2) The Director General may

inquire into any complaint from an
employee that an employer
practices discrimination on the
basis of gender, religion, race,
disabilities or as may be
prescribed by the Minister in
relation to terms and conditions of
employment; and the Director
General may issue to the employer
such directives as may be
necessary or expedient to resolve
the matter.
Provided that any distinction,

exclusion or preference in respect
of a particular job based on the
inherent requirements thereof shall
not be deemed to be
discrimination.
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17C Nil Prohibition of forced labour
(1) Subject to the Federal

Constitution, all form of forced
labour is prohibited.
(2) No person may for his or her

own benefit or for the benefit of
someone else, cause, demand or
impose forced labour in
contravention of subsection (1).
(3) Any person who

contravenes subsection (1) or (2)
commits an offence and shall, on
conviction, be liable to a fine not
exceeding fifty thousand ringgit.
PART III PART III

PAYMENT OF WAGES PAYMENT OF WAGES
22 Limitation of advances to Limitation of advances to
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employees employees
(2) For the purposes of this section, (2) For the purposes of this section,
“immediate family members” “immediate family members” means
means the employees’ parents, the employees’ parents, spouse,
children, siblings, or any other children, siblings, or any other
person under the employee’s person under the employee’s
guardianship. guardianship.
PART V PART V
SYSTEM OF PAYMENT OF SYSTEM OF PAYMENT OF
WAGES WAGES
25. Wages to be paid through bank Wages to be paid through bank

financial institution
(1) The entire amount of wages 25. (1) The entire amount of wages
earned by, or payable to, any earned by, or payable to, any
employee in respect of any work employee in respect of any work done
done by him less any lawful by him less any lawful deductions,
deductions, shall be actually paid to shall be actually paid to him through
him through payment into an account payment into an account at a bank,
at a bank, finance company, financial finance company, financial institution
institution or other institutions or other institutions licensed or
licensed or established under the established under the Banking and
Banking and Financial Institutions Financial Institutions Act 1989 [Act
Act 1989 [Act 372] or any other 372] or any other written law, in any
written law, in any part of Malaysia part of Malaysia being an account in
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being an account in the name of the the name of the employee or an

employee or an account in the name account in the name of the employee
of the employee jointly with one or jointly with one or more other persons
more other persons as stipulated by as stipulated by the employee which
the employee. is maintained with a financial
institution.
(2) Every employee shall be (2) Remain

entitled to recover in the courts so
much of his wages, exclusive of
sums lawfully deducted under Part
IV, as shall not have been actually
paid to him in accordance with
subsection (1).
(3) For the purposes of this Part,
(3) Nil “financial institution” refers to-
(a) a licensed bank under the

Financial Services Act 2013
[Act 758];
(b) an Islamic bank under the

Islamic Financial Services
Act 2013 [Act 759];
(c) a prescribed institution

under the Development
Financial Institutions Act
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2002 [Act 618] or any other

account maintained with an
entity approved under the
Act 758 and Act 759 as may
be specified in an order by
the Minister;
(d) an institution licensed,

authorised, permitted,
registered or established,
pursuant to any other
written law and authorized
to accept deposit; and
(e) any other person

prescribed by the Minister
of Finance as a financial
institution for purposes of
this Part.
25A. 25A. Payment of wages other than 25A. Payment of wages other than
through bank through bank financial institution
(1) Notwithstanding subsection 25(1), (1) Notwithstanding subsection 25(1),

an employer may, upon a written an employer may, upon a written
request of the employee, other than request of the employee, other than a
a domestic servant, make payment domestic servant, make payment of
of his employee’s wages— his employee’s wages—
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(a) in legal tender; or

(a) in legal tender; or
(b) by cheque made payable to or
to the order of the employee. (b) by cheque made payable to or
to the order of the employee.
(2) In the case of a domestic servant, (2) In the case of a domestic (3)
the employer shall, upon the request servant, The employer shall, upon the
of his domestic servant, obtain written request of his domestic
approval from the Director General servant employee, obtain approval
for the payment of wages of the from the Director General for the
domestic servant to be paid in legal payment of wages of the domestic
tender or by cheque. servant employee to be paid in legal
tender or by cheque.
(2A) Nil (2A) The Director General may

impose any condition in respect of
approval granted under subsection
(2).
(3) The request by the employee Remain

under subsections (1) and (2) may
be withdrawn by the employee at any
time, by notice in writing, to the
employer.
Remain
(4) The notice referred to in
subsection (3) shall take effect at, but
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not before, the end of the period of

four weeks beginning with the day on
which the notice is given. Remain
(5) The request of the employee to

the mode of payment of wages under
subsections (1) and (2) shall not be
unreasonably withheld by the Remain
employer.
(6) Any dispute arising out of the

request by the employee under
subsections (1) and (2) shall be
referred to the Director General Remain
whose decision on the matter shall
be final.
(7) Section 69 shall not apply in

respect of any dispute under
subsection (6).
25B. Nil 25B. Power of Director General to

enquire into any information in
respect of payment of wages and
all other payments arises from a
contract of service
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The Director General may require

for disclosure of any information
from any financial institution with
regard to the payment of wages
and all other payments entered into
or caused to be entered into in
respect to a contract of service.
PART VII PART VII

CONTRACTORS, PRINCIPALS CONTRACTORS, PRINCIPALS,
AND CONTRACTORS FOR CONTRACTORS, SUB-
LABOUR CONTRACTORS AND
CONTRACTORS FOR LABOUR
33 Liability of principals and Liability of principals, and

contractors for wages contractors, sub-contractors and
contractors for labour for wages
(1) Where a principal in the course of Remain

or for the purposes of his trade or
business, contracts with a contractor
for the execution by or under the
contractor of the whole or any part of
any work undertaken by the principal,
and any wages are due to any
employee by the contractor or any
sub-contractor under the contractor
for work done in the course of the
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performance of the contract, the

principal and the contractor and any
such sub-contractor (not being the
employer) shall be jointly and
severally liable with the employer to
pay such wages as if that employee
had been immediately employed by
the principal and by the contractor
and any such sub-contractor: Remain.
Provided that- Remain.
(a) in the case of a contract for

constructional work the principal shall
not be liable for the payment of
wages under this subsection unless
he is also a constructional contractor
or a housing developer; Remain.
(b) the principal, and the contractor

and any sub-contractor (not being
the employer), shall not be liable to
any employee under this subsection
for more than the wages due to him
for any three consecutive months; Remain.
and
c) the employee shall have instituted
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proceedings against the principal for

the recovery of his wages or made a
complaint to the Director General
under Part XV within ninety days
from the date on which such wages
became due for payment by his
employer in accordance with the (1A) Subsection (1) shall also
provisions for the payment of wages be applicable to contractor for
contained in Part III. labour.
(1A) Nil. Remain.
(2) Any person, other than the

employer, who has paid wages under
this section to the employee of any
employer may institute civil
proceedings against such employer
for the recovery of the amount of
wages so paid.
33B Nil Verification of agreement by a

contractor for labour
(1) Any agreement for supply of

labour shall be in writing and may
subject to verification by the
Director General.
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subsection (1), the Director
General may request any
document relating to the
agreement.
(3) Any person who

contravenes subsection (1)
commits an offence.
PART VIII PART VIII
EMPLOYMENT OF WOMEN EMPLOYMENT OF WOMEN
34 Prohibition of Night Work 34. Prohibition of Night Work
(1) Except in accordance with (1) Except in accordance with

regulations made under this Act regulations made under this Act or
or any exemption granted under any exemption granted under the
the proviso to this subsection no proviso to this subsection no
employer shall require any employer shall require any female
female employee to work in any employee to work in any industrial
industrial or agricultural or agricultural undertaking
undertaking between the hours of between the hours of ten o‘clock
ten o‘clock in the evening and in the evening and five o’clock in
five o’clock in the morning nor the morning nor commence work
commence work for the day for the day without having had a
without having had a period of period of eleven consecutive
eleven consecutive hours free hours free from such work:
from such work:
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Provided that the Director General

Provided that the Director may, on application made to him
General may, on application in any particular case, exempt in
made to him in any particular writing any female employee or
case, exempt in writing any class of female employees from
female employee or class of any restriction in this
female employees from any subsection,subject to any
restriction in this conditions he may impose.
subsection,subject to any
conditions he may impose.
(2) Any person-
(2) Any person-
(a) who is affected by any
(a) who is affected by any decision made or condition
decision made or condition imposed under the proviso
imposed under the proviso to subsection (1);and
to subsection (1);and (b) who is dissatisfied with such
(b) who is dissatisfied with such decision or condition,
decision or condition, may within thirty days of such
may within thirty days of such decision or condition being
decision or condition being communicated to him appeal in
communicated to him appeal in writing therefrom to the Minister.
writing therefrom to the Minister.
(3) In deciding any appeal made
to him under subsection (2), the
(3) In deciding any appeal made Minister may make such decision
to him under subsection (2), the or order thereon, including the
Minister may make such decision alteration or removal of any
or order thereon, including the condition imposed or the
alteration or removal of any imposition of any further condition,
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condition imposed or the as appears just and such decision

imposition of any further or order shall be final.
condition, as appears just and
such decision or order shall be
final.
35 Prohibition of underground work 35. Prohibition of underground

work
No female employee shall be
employed in any underground No female employee shall be
working. employed in any underground
working.
36. Prohibition of employment by 36. Prohibition of employment by
Minister Minister
Notwithstanding the provisions of Notwithstanding the provisions of

this Part the Minister may by order this Part the Minister may by order
prohibit or permit the employment prohibit or permit the employment
of female employees in such of female employees in such
circumstances or under such circumstances or under such
conditions as may be described in conditions as may be described in
such order. such order.
PART IX PART IX
MATERNITY PROTECTION MATERNITY PROTECTION
37. Length of eligible period and Length of eligible period and
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entitlement to maternity entitlement to maternity allowance.

allowance.
Remain
(1) (a) Every female employee shall
be entitled-
Remain
(i) to maternity leave for an eligible
period in respect of each
confinement; and Remain
(ii) subject to this Part, to receive

from her employer a maternity
allowance to be calculated or
prescribed as provided in subsection
(2) in respect of the eligible period.
(aa) Where a female employee is (aa) Remain

entitled to maternity leave under
subparagraph (a)(i) but is not entitled
to receive maternity allowance from
her employer for the eligible period
under paragraph (c), or because she
has not fulfilled the conditions set out
in paragraph (2)(a), she may, with
the consent of the employer,
commence work at any time during
the eligible period if she has been
certified fit to resume work by a
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registered medical practitioner.

(b) Subject to section 40, maternity Remain
leave shall not commence earlier
than a period of thirty days
immediately preceding the
confinement of a female employee or
later than the day immediately
following her confinement:
Provided that where a medical officer

or the registered medical practitioner
appointed by the employer certifies
that the female employee as a result
of her advanced state of pregnancy
is unable to perform her duties
satisfactorily, the employee may be
required to commence her maternity
leave at any time during a period of
fourteen days preceding the date of
her confinement as determined in
advance by the medical officer or the
registered medical practitioner Remain
appointed by the employer.
(bb) Where a female employee

abstains from work to commence her
maternity leave on a date earlier than
the period of thirty days immediately
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preceding her confinement, such

abstention shall not be treated as
maternity leave and she shall not be
entitled to any maternity allowance in
respect of the days during which she
abstains from work in excess of the
period of thirty days immediately
preceding her confinement.
(c) Notwithstanding subparagraph Remain

(a)(ii), a female employee shall not
be entitled to any maternity
allowance if at the time of her
confinement she has five or more
surviving children.
(d) For the purposes of this Part- Remain
(i) "children" means all natural

children, irrespective of age; and
(ii) "eligible period" means a period of (ii) “eligible period” means a period of
maternity leave of not less than sixty maternity leave of not less than sixty
consecutive days. ninety eight consecutive days.
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(2)(a) A female employee shall be Remain

entitled to receive maternity
allowance for the eligible period from
her employer if-
(i) she has been employed by the

employer for a period of, or periods
amounting in the aggregate to, not
less than ninety days during the nine
months immediately before her
confinement; and
(ii) she has been employed by the

employer at any time in the four
months immediately before her
confinement;
(b) A female employee who is eligible Remain

for maternity allowance under
paragraph (1)(a) shall be entitled to
receive from the employer for each
day of the eligible period a maternity
allowance at her ordinary rate of pay
for one day, or at the rate prescribed
by the Minister under paragraph
102(2)(c), whichever is the greater.
(c) A female employee employed on Remain
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a monthly rate of pay shall be

deemed to have received her
maternity allowance if she continues
to receive her monthly wages during
her abstention from work during the
eligible period without abatement in
respect of the abstention.
Remain
(d) Where a female employee claims
maternity allowance under this
section from more than one
employer, she shall not be entitled to
receive a maternity allowance of an
amount exceeding in the aggregate
the amount which she would be
entitled to receive if her claim was
made against one employer only. Remain
(3) Where there are more employers

than one from whom the female
employee would be entitled to claim
maternity allowance in accordance
with subsection (2) the employer who
pays the maternity allowance shall
be entitled to recover from such other
employer, as a civil debt, a
contribution which shall bear the
same proportion to the amount of the
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maternity allowance paid to the

female employee as the number of
days on which she worked for such
other employer during the period of
nine months immediately preceding
her confinement bears to the total
number of days on which she worked
during the said period:
Provided that if the female employee

has failed to comply with subsection
40(1) or (2), the employer who pays
the maternity allowance shall not
thereby be prevented from
recovering contribution calculated in
accordance with this subsection.
(4) Any employer who terminates the (4) Any employer who terminates the
service of a female employee during service of a female employee during
the period in which she is entitled to the period in which she is entitled to
maternity leave commits an offence: maternity leave commits an offence:
Provided that for the purpose of this Provided that for the purpose of this
section, such termination shall not section, such termination shall not
include termination on the ground of include termination on the ground of
closure of the employer's business. closure of the employer's business.
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42. Restriction on dismissal of female Restriction on dismissal termination

employee after eligible period. of female employee after eligible
period or during maternity leave
and on the ground of pregnancy
42. (1) Where a female employee Remain

remains absent from her work after
the expiration of the eligible period as
a result of illness certified by a
registered medical practitioner to
arise out of her pregnancy and
confinement and to render her unfit
for her work, it shall be an offence,
until her absence exceeds a period
of ninety days after the expiration of
the eligible period, for her employer
to terminate her services or give her
notice of termination of service. Remain
(2) Subject to subsection (1), where

the service of a female employee is
terminated with wages in lieu of
notice at any time during the period
of four months immediately
preceding her confinement, she
shall, in computing the period of her
employment for the purposes of this
Part, be deemed to have been
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employed as if she had been given (3) Any employer who terminates
due notice instead of wages in lieu the service of a female employee
thereof. on the ground of pregnancy, or
during the period in which she is
(3) Nil entitled to maternity leave commits
an offence:
Provided that for the purpose of

this section, such termination shall
not include termination on the
ground of closure of the
employer's business.
44A Application of this Part Application of this Part irrespective

irrespective of wages of female of wages of female employee
employee
44A. Notwithstanding paragraph 1 of
44A. Notwithstanding paragraph 1 of the First Schedule, this Part extends
the First Schedule, this Part extends to every female employee who is
to every female employee who is employed under a contract of service
employed under a contract of service irrespective of her wages.
irrespective of her wages.
Part XI Part XI
DOMESTIC SERVANTS DOMESTIC SERVANTS EMPLOYEE
57 Termination of contract Termination of contract
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Subject to any express provision to the Subject to any express provision to the
contrary contained therein, a contract contrary
to contained therein, a contract to
employ and to serve as a domestic employ and to serve as a domestic servant
servant may be terminated either by the employee may be terminated either by the
person employing the domestic servantpersonor employing the domestic servant
by the domestic servant giving the other employee or by the domestic servant
party fourteen days' notice of his intention
employee giving the other party fourteen
to terminate the contract, or by the paying
days' notice of his intention to terminate the
of an indemnity equivalent to the wages contract, or by the paying of an indemnity
which the domestic servant would have equivalent to the wages which the
earned in fourteen days: domestic servant employee would have
earned in fourteen days:
Provided that any such contract may Provided
be that any such contract may be
terminated by either party without notice terminated by either party without notice
and without the paying of an indemnity andon without the paying of an indemnity on
the ground of conduct by the other party the ground of conduct by the other party
inconsistent with the terms and conditionsinconsistent with the terms and conditions
of the contract. of the contract.
57A Employment of foreign domestic Employment of foreign domestic

servant servant employee
(1) An employer who employs a (1) An employer who employs a

foreign domestic servant shall, within foreign domestic servant employee
thirty days of the employment, inform shall, within thirty days of the
the Director General of such employment, inform the Director
employment in a manner as may be General of such employment in a
determined by the Director General. manner as may be determined by the
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(2) An employer who contravenes

subsection (1) commits an offence Director General.
and shall, on conviction, be liable to
a fine not exceeding ten thousand (2) An employer who contravenes
ringgit. subsection (1) commits an offence
and shall, on conviction, be liable to a
fine not exceeding ten thousand
ringgit.
57B Duty to inform Director General of Duty to inform Director General of
termination of service of foreign termination of service of foreign
domestic servant. domestic servant employee.
(1) If the service of a foreign (1) If the service of a foreign domestic
domestic servant is terminated- servant employee is terminated-
(a) by the employer; (a) by the employer;
(b) by the foreign domestic servant; (b) by the foreign domestic servant
employee;
(c) upon the expiry of the (c) upon the expiry of the employment
employment pass issued by the pass issued by the Immigration
Immigration Department of Malaysia Department of Malaysia to the foreign
to the foreign domestic servant; or domestic servant employee; or
(d) by the repatriation or deportation

(d) by the repatriation or deportation of the foreign domestic servant
of the foreign domestic servant, the employee, the employer shall, within
employer shall, within thirty days of thirty days of the termination of
33
SECTIO COMMENT
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the termination of service, inform the service, inform the Director General of
Director General of the termination in the termination in a manner as may
a manner as may be determined by be determined by the Director
the Director General. General.
(2) For the purpose of paragraph (2) For the purpose of paragraph
(1)(b), the termination of service by a (1)(b), the termination of service by a
foreign domestic servant includes the foreign domestic servant employee
act of the foreign domestic servant includes the act of the foreign
absconding from his place of domestic servant absconding from his
employment. place of employment.
(3) An employer who contravenes (3) An employer who contravenes

subsection (1) commits an offence subsection (1) commits an offence,.
and shall, on conviction, be liable to be liable to a fine not exceeding ten
a fine not exceeding ten thousand thousand ringgit.
ringgit.
PART XII PART XII

REST DAYS, HOURS OF WORK, REST DAYS, HOURS OF WORK,
HOLIDAYS AND OTHER HOLIDAYS AND OTHER
CONDITIONS OF SERVICE CONDITIONS OF SERVICE
60A. Hours of work Hours of work
(1) Except as hereinafter provided, Remain

an employee shall not be required
under his contract of service to work
34
SECTIO COMMENT
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— Remain
(a) more than five consecutive hours
without a period of leisure of not less
than thirty minutes duration;
Remain
(b) more than eight hours in one day;
Remain
(c) in excess of a spread over period
of ten hours in one day;
(d) more than forty-eight forty-four
(d) more than forty-eight hours in one hours in one week:
week:
Provided that—
Provided that— (i) for the purpose of paragraph (1)(a),
(i) for the purpose of paragraph (1) any break of less than thirty minutes
(a), any break of less than thirty in the five consecutive hours shall not
minutes in the five consecutive hours break the continuity of that five
shall not break the continuity of that consecutive hours;
five consecutive hours;
Remain
(ii) an employee who is engaged in
work which must be carried on
continuously and which requires his
continual attendance may be
required to work for eight
consecutive hours inclusive of a
period or periods of not less than
forty-five minutes in the aggregate
35
SECTIO COMMENT
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during which he shall have the (iii) where, by agreement under the
opportunity to have a meal; and contract of service between the
employee and the employer, the
(iii) where, by agreement under the number of hours of work on one or
contract of service between the more days of the week is less than
employee and the employer, the eight, the limit of eight hours may be
number of hours of work on one or exceeded on the remaining days of
more days of the week is less than the week, but so that no employee
eight, the limit of eight hours may be shall be required to work for more
exceeded on the remaining days of than nine hours in one day or forty-
the week, but so that no employee eight forty-four hours in one week.
shall be required to work for more
than nine hours in one day or forty-
eight hours in one week.
60A (10) Nil. (1) An employer who engages

any employee for night work
between the hours of ten
o‘clock in the evening and five
o’clock in the morning shall-
a. ensure the safety of the

employee; and
b. not commence work for

the day without having
had a period of eleven
consecutive hours free
from such work;
36
SECTIO COMMENT
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subsection (1), an employer
may provide transport services
for the employee.
60F. Sick leave. 60F. Sick leave.
60F. (1) An employee shall, after Remain

examination at the expense of the
employer—
(a) by a registered medical Remain

practitioner duly appointed by the
employer; or
Remain
(b) if no such medical practitioner is
appointed or, if having regard to the
nature or circumstances of the
illness, the services of the medical
practitioner so appointed are not
obtainable within a reasonable time
or distance, by any other registered
medical practitioner or by a medical
officer, be entitled to paid sick leave, Remain
—
(aa) where no hospitalization is Remain
37
SECTIO COMMENT
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necessary,—
(i) of fourteen days in the aggregate

in each calendar year if the Remain
employee has been employed for
less than two years;
(ii) of eighteen days in the aggregate

in each calendar year if the Remain
employee has been employed for
two years or more but less than five
years;
Remain
(iii) of twenty-two days in the
aggregate in each calendar year if
the employee has been employed for
five years or more; or
(bb) of sixty days in the aggregate in Remain

each calendar year if hospitalization
is necessary, as may be certified by
such registered medical practitioner
or medical officer:
Remain
Provided that the total number of
days of paid sick leave in a calender
year which an employee is entitled to
under this section shall be sixty days
38
SECTIO COMMENT
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in the aggregate;
And provided further that if an

employee is certified by such
registered medical practitioner or Remain
medical officer to be ill enough to
need to be hospitalized but is not
hospitalized for any reason
whatsoever, the employee shall be
deemed to be hospitalized for the
purposes of this section. Provided that the entitlement for such
sick leave shall be inclusive of the
(1A) An employee shall also be number of days provided for under
entitled to paid sick leave under paragraphs (1)(aa) and (bb).
paragraphs (1)(aa) and (bb) after
examination by a dental surgeon as Remain
defined in the Dental Act 1971 [Act
51]:
Remain
Provided that the entitlement for
such sick leave shall be inclusive of
the number of days provided for
under paragraphs (1)(aa) and (bb).
(2) An employee who absents Remain

himself on sick leave—
(a) which is not certified by a
39
SECTIO COMMENT
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registered medical practitioner or a

medical officer as provided under
subsection (1) or a dental surgeon as
provided under subsection (1A); or Remain
(b) which is certified by such

registered medical practitioner or
medical officer or dental surgeon, but
without informing or attempting to
inform his employer of such sick Remain
leave within forty-eight hours of the
commencement thereof,
shall be deemed to absent himself

from work without the permission of
his employer and without reasonable
excuse for the days on which he is
so absent from work.
(3) The employer shall pay the

employee his ordinary rate of pay for Remain
every day of such sick leave, and an
employee on a monthly rate of pay
shall be deemed to have received his
sick leave pay if he receives from his
employer his monthly wages, without
abatement in respect of the days on
which he was on sick leave, for the
40
SECTIO COMMENT
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month during which he was on such

sick leave.
(4) No employee shall be entitled to

paid sick leave for the period during
which the employee is entitled to
maternity allowance under Part IX, or
for any period during which he is
receiving any compensation for
disablement under the Workmen’s
Compensation Act 1952 [Act 273], or
any periodical payments for
temporary disablement under the
Employees Social Security Act 1969
[Act 4].
60IA Nil. 60IA. Calculation of wages for

incomplete month of work
(1) Where an employee is

employed on a monthly rate of pay
and has not completed the whole
month of service due to-
(a) he commences employment

after the first day of the
month;
41
SECTIO COMMENT
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(b) his employment is

terminated before the end of
the month;
(c) he takes leave of absence

without pay for one or more
days of the months;
(d) he takes leave of absence to

perform his national service
under Akta Latihan Khidmat
Negara 2003 (Akta 628) or
voluntary service under Akta
Angkatan Tentera (Pindaan)
2005 (Akta A1243) and Akta
Polis 1967 (Akta 344).
(2) His wages shall be calculated

according to the following formula:
Monthly Wages Number of days

Number of days of the X eligible in the wage
particular wage period period
PART XIIB PART XIIB
EMPLOYMENT OF FOREIGN EMPLOYMENT OF FOREIGN
EMPLOYEES EMPLOYEES
60K Duty to furnish information and Duty to furnish information and
42
SECTIO COMMENT
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returns returns
Employment of foreign employee
(1) An employer who employs a

(1) An employer who employs a foreign employee shall, within
foreign employee shall, within fourteen days of the employment,
fourteen days of the employment, furnish the Director General with the
furnish the Director General with the particulars of the foreign employee by
particulars of the foreign employee forwarding the particulars to the
by forwarding the particulars to the nearest office of the Director
nearest office of the Director General.No employer shall employ
General. any foreign employee unless he
has obtained certification from the
Director General.
(2) An employer or any specified (2) An employer or any specified

class or classes of employers, class or classes of employers,
whenever required to do so by the whenever required to do so by the
Director General, shall furnish Director General, shall furnish returns
returns of particulars relating to the of particulars relating to the
employment of a foreign employee in employment of a foreign employee in
such manner and at such intervals as such manner and at such intervals as
the Director General may direct. the Director General may direct. An
employer who intends to employ
any foreign employee shall apply
for the certification under
subsection (1) in the form and
manner as determined by the
43
SECTIO COMMENT
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(3) If the service of a foreign Director General.

employee is terminated-
(3) If the service of a foreign
(a) by the employer; employee is terminated-
(b) by the foreign (a) by the employer;

employee;
(b) by the foreign
(c) upon the expiry of the employee;
employment pass issued by
the Immigration Department (c) upon the expiry of the
of Malaysia to the foreign employment pass issued by
employee; or the Immigration Department of
Malaysia to the foreign
(d) by the repatriation or employee; or
deportation of the foreign
employee, (d) by the repatriation or
the employer shall, within thirty days employee,
of the termination of service, inform
the Director General of the the employer shall, within thirty days
termination in a manner as may be of the termination of service, inform
determined by the Director General. the Director General of the
termination in a manner as may be
General.The employer who has
been granted the certification
shall, within fourteen days of the
44
SECTIO COMMENT
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employment of foreign employee,

furnish the Director General with
the particulars of the foreign
(4) For the purpose of paragraph employee by forwarding the
(3)(b), the termination of service by a particulars to the nearest office of
foreign employee includes the act of the Director General.
the foreign employee absconding
from his place of employment. (4) For the purpose of paragraph
(3)(b), the termination of service by a
foreign employee includes the act of
the foreign employee absconding
from his place of employment.An
employer who contravenes
subsection (1) commits an offence
and shall, on conviction, be liable
(5) An employer who contravenes to a fine not exceeding one
subsections (1) commits an offence hundred thousand ringgit or to
and shall, on conviction, be liable to imprisonment for a term not
a fine not exceeding ten thousand exceeding three years or to both.
ringgit.
(5) An employer who contravenes
subsections (1) commits an offence
and shall, on conviction, be liable to a
fine not exceeding ten thousand
ringgit. If the service of a foreign
employee is terminated-
(a) by the employer;
45
SECTIO COMMENT
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(b) upon expiry of the

employment pass issued by
the Immigration Department
of Malaysia to the foreign
employee; or
(c) by the repatriation or

employee,
(6) Nil. the employer shall before thirty

days of the termination of service,
inform the Director General of the
termination in a manner as may be
General.
(6) If the service of employment

is terminated by the foreign
(7) Nil. employee or the foreign employee
absconds from his place of
employment, the employer shall
within 14 days of the termination
or abscondment inform the
Director General in a manner as
may be determined by the Director
General.
46
SECTIO COMMENT
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(7) Any variation or substitution to

(8) Nil. any existing contract of service
which is less favourable to the
employee shall be deemed invalid.
(8) In the case of any employer

convicted of any offence of a
large-scale, repeated or egregious
violations of employment law
maybe be denied employing
foreign employees for a specified
period.
Nil Part XIIC

FLEXIBLE WORKING
ARRANGEMENT
60P Nil Flexible Working Arrangement
47
SECTIO COMMENT
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(1) Notwithstanding anything

contained in the contract of
service, an employee may make a
request at any time.
(2) The request shall be in

writing and contain the following:-
(a) the employee’s name;
(b) the date on which the

request is made;
(c) specify the variation of

the working
arrangements requested
and whether the
variation is permanent
or for a period of time;
(d) specify the date on

which the employee
proposes that the
variation take effect and,
if the variation is for a
period of time, the date
48
SECTIO COMMENT
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on which the variation is

to end; and
(e) explain, in the

employee’s view, what
changes, if any, the
employer may need to
make to the employer’s
arrangements if the
employee’s request is
approved.
(3) An employer shall consider

the request not later than 1 month
from the date of such request, and
shall notify the decision in writing.
(4) The request shall be refused if-
(a) the employee is bound by a

collective agreement;
(b) the request relates to

working arrangements to
which the collective
agreement applies; and
(c) the employee’s working
49
SECTIO COMMENT
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arrangements would be
inconsistent with the
collective agreement if the
employer were to approve
the request.
(5) If the employer refuses the

request, he shall state the ground
on the refusal due to wholly or
mainly to the fact that-
(a) inability to reorganise work

among employees:
(b) inability to recruit additional

employee:
(c) detrimental impact on

quality:
(d) detrimental impact on

performance:
(e) insufficiency of work during

the period the employee
proposes to work:
(f) planned structural changes:
50
SECTIO COMMENT
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(g) burden of additional costs:
(h) detrimental effect on ability

to meet customer demand.
(6) if an employee believes that his

employer has not complied with
section 60P(3), the employee may
refer to the Director General who
may, to the extent practicable in
the circumstances, facilitate the
employee and employer to resolve
the matter.

For the purpose of this Part,

“request” means a written request
made under this Part by an
employee to his employer to vary
the employee’s terms and
conditions of employment relating
to the employee’s working
arrangements in relation to hours
51
SECTIO COMMENT
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of work or days of work and place

of employment.
PART XIII PART XIII

REGISTERS, RETURNS AND REGISTERS, RETURNS AND
NOTICE BOARDS NOTICE BOARDS
61 (3) Notwithstanding subsections (1) (3) Notwithstanding subsections (1)

and (2) the Director General, on a and (2) the Director General, on a
written application by an employer, written application by an employer,
may permit the employer to keep the may permit the employer to may keep
information required under the information required under
subsection (1) in any other manner subsection (1) in a any other manner
as may be approved by the Director as may be determined may be
General subject to such conditions approved by the Director General.
as he may deem fit to impose. subject to such any conditions as he
may deem fit to impose stipulated in
regulations.
PART XV PART XV
COMPLAINTS AND INQUIRIES COMPLAINTS AND INQUIRIES
69 Director General’s power to Director General’s power to inquire

inquire into complaints. into complaints.
(1) The Director General may inquire Remain.

into and decide any dispute between
an employee and his employer in
52
SECTIO COMMENT
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respect of wages or any other

payments in cash due to such
employee under-
Remain.
(a)any term of the contract of
service between such
employee and his employer;
Remain.
(b) any of the provisions of this
Act or any subsidiary
legislation made thereunder;
or (c) the provisions of the Wages
Councils Act 1947 National
(c) the provisions of the Wages Wages Consultative Council
Council Act, 1947 or any order Act 2011 or any order made
made thereunder, thereunder,
and, in pursuance of such decision,

and, in pursuance of such decision, may make an order in the prescribed
may make an order in the prescribed form for the payment by the employer
form for the payment by the of such sum of money as he deems
employer of such sum of money as just without limitation of the amount
he deems just without limitation of thereof.
the amount thereof.
Remain.
(2) The powers of the Director
General under subsection (1) shall
include the power to hear and
53
SECTIO COMMENT
N
decide, in accordance with the

procedure laid down in this Part, any
claim by- Remain.
(i) an employee against any (ii) a contractor for labour against a

person liable under section principal, contractor or sub-
33; contractor for any sum which the
contractor for labour claims to be due
(ii) a contractor for labour against to him in respect of any labour
a contractor or sub-contractor provided by him under his contract
for any sum which the with the contractor or sub-contractor;
contractor for labour claims to or
be due to him in respect of
any labour provided by him
under his contract with the Remain.
contractor or sub-contractor;
or
(iii) an employer against his Remain.

employee in respect of
indemnity due to such
employer under section 13(1),
Remain.
and to make such consequential
orders as may be necessary to give
effect to his decision.
54
SECTIO COMMENT
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(3) In addition to the powers

conferred by subsections (1) and (2),
the Director General may inquire into
and confirm or set aside any decision
made by an employer under Remain.
subsection 14(1) and the Director
General may make such
consequential orders as may be
necessary to give effect to his
decision:
Provided that if the decision of the

employer under paragraph 14(1) (a)
is set aside, the consequential order
of the Director General against such Remain.
employer shall be confined to
payment of indemnity in lieu of notice
and other payments that the
employee is entitled to as if no
misconduct was committed by the
employee:
Remain.
Provided further that the Director
General shall not set aside any
decision made by an employer under
paragraph 14(1)(c) if such decision
has not resulted in any loss in wages
or other payments payable to the
55
SECTIO COMMENT
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employee under his contract of

service:
Remain.
And provided further that the Director
General shall not exercise the power
conferred by this subsection unless
the employee has made a complaint
to him under the provisions of this
Part within sixty days from the date
on which the decision under section
14 is communicated to him either
orally or in writing by his employer.
(3A) An order made by the Director Remain.

General for the payment of money
under this section shall carry interest
at the rate of eight per centum per
annum, or at such other rate not
exceeding eight per centum per
annum as the Director General may
direct, the interest to be calculated
commencing on the thirty-first day (4) A person who fails to comply with
from the date of the making of the any decision or order of the Director
order until the day the order is General made under this section
satisfied: commits an offence and shall be
liable, on conviction, to a fine not
Provided that the Director General, exceeding ten thirty thousand ringgit;
on an application by an employer and shall also, in the case of a
56
SECTIO COMMENT
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made within thirty days from the date continuing offence, be liable to a daily
of the making of the order, if he is fine not exceeding one two hundred
satisfied that special circumstances ringgit for each day the offence
exist, may determine any other date continues after conviction.
from which the interest is to be
calculated. (5) Where the employer has been
convicted of an offence under
(4) A person who fails to comply with subsection (4), the court before
any decision or order of the Director which he is convicted may order
General made under this section the employer to pay any payments
commits an offence and shall be due to the employee by virtue of an
liable, on conviction, to a fine not order made by the Director General
exceeding ten thousand ringgit; and under section 69.
shall also, in the case of a continuing
offence, be liable to a daily fine not (6) Where an employer fails to
exceeding one hundred ringgit for comply with an order made under
each day the offence continues after subsection (5), the court shall, on
conviction. the application of the employee,
issue a warrant to levy the
Nil. employer’s property for any
payments or other differences
accrued under subsection (5) in the
following manner:
(a) by way of distress and

sale of employer’s property
in accordance with the same
Nil. procedure of execution
57
SECTIO COMMENT
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under the Rules of Court

2012 and this execution shall
apply mutatis mutandis
notwithstanding the amount
in the order; or
(b) in the same manner as a

fine as provided under
section 283 of the Criminal
Procedure Code [Act 593].
69B. Additional powers of Director Additional powers of Director

General to inquire into complaints. General to inquire into complaints.
(1) Notwithstanding the provisions (1) Notwithstanding the provisions of

of this Act, the powers of the Director this Act, the powers of the Director
General under paragraph 69(1)(a) General under paragraph 69(1)(a)
shall extend to employees whose shall extend to employees whose
wages per month exceed two wages per month exceed two four
thousand ringgit but does not exceed thousand ringgit but does not exceed
five thousand ringgit. five seven thousand and five
hundred ringgit.
(2) For the purposes of this (3) For the purposes of this
section, the term “wages” means section, the term “wages” means
wages as defined in section 2 but wages as defined in section 2 but
does not include any payment by does not include any payment by way
58
SECTIO COMMENT
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way of commission, subsistence of commission, subsistence

allowance or overtime payment. allowance or overtime payment.
(3) Save for Parts XV and XVI which (3) Save for Parts XV and XVI which
shall apply with the necessary shall apply with the necessary
modifications, the other provisions of modifications, the other provisions of
this Act shall not apply to the this Act shall not apply to the
employees referred to in subsection employees referred to in subsection
(1). (1).
69C. Claims for indemnity for Claims for indemnity for

termination of contract without termination of contract without
notice notice
(1) In the exercise of his powers (1) In the exercise of his powers
under subsection 69B(1), the under subsection 69B(1), the Director
Director General may inquire into General may inquire into and decide
and decide any claim concerning any any claim concerning any indemnity
indemnity due to the employer or due to the employer or employee
employee where the contract of where the contract of service is
service is terminated by either party terminated by either party without
without notice, or if notice was given, notice, or if notice was given, without
without waiting for the expiry of that waiting for the expiry of that notice.
notice.
(2) The indemnity due to the employer
(2) The indemnity due to the or employee under subsection (1)
employer or employee under shall be a sum equal to the amount of
subsection (1) shall be a sum equal wages which would have accrued to
59
SECTIO COMMENT
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to the amount of wages which would the employee during the term of the
have accrued to the employee during notice or during the unexpired term of
the term of the notice or during the the notice.
unexpired term of the notice.
69D. Order of Director General may be Order of Director General may be

in writing in writing
Notwithstanding subsection 69(1), an Notwithstanding subsection 69(1), an

order of the Director General made order of the Director General made
under subsection 69B(1) or 69C(1) under subsection 69B(1) or 69C(1) for
for the payment by or to the the payment by or to the employer or
employer or employee of a sum of employee of a sum of money as the
money as the Director General Director General deems just, without
deems just, without any limitation of any limitation of amount, may be
amount, may be made in writing. made in writing.
69E. 69E. Penalty for offence. 69E. Penalty for offence.
A person who fails to comply with a (1) A person who fails to comply with
decision or an order of the Director a decision or an order of the Director
General made under subsection General made under subsection
69B(1) or 69C(1) shall be guilty of an 69B(1) or 69C(1) shall be guilty of an
offence and shall, on conviction, be offence and shall, on conviction, be
liable to a fine not exceeding ten liable to a fine not exceeding ten fifty
thousand ringgit; and shall also, in thousand ringgit; and shall also, in the
the case of a continuing offence, be case of a continuing offence, be liable
liable to a daily fine not exceeding to a daily fine not exceeding one five
60
SECTIO COMMENT
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one hundred ringgit for each day the hundred ringgit for each day the
offence continues after conviction. offence continues after conviction.
70. Procedure in Director General’s Procedure in Director General’s

inquiry inquiry
70. The procedure for disposing of 70. The procedure for disposing of
questions arising under sections 69, questions arising under sections 69,
69B and 69C shall be as follows: 69B, and 69C, and 81D shall be as
follows:
(a) the person complaining shall
present to the Director General a Remain.
written statement of his complaint
and of the remedy which he
seeks or he shall in person make
a statement to the Director
General of his complaint and of
the remedy which he seeks;
(b) the Director General shall as Remain

soon as practicable thereafter
examine the complainant on oath
or affirmation and shall record the
substance of the complainant’s
statement in his case book;
(c)the Director General may make Remain

such inquiry as he deems
61
SECTIO COMMENT
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necessary to satisfy himself that

the complaint discloses matters
which in his opinion ought to be
inquired into and may summon in
the prescribed form the person
complained against, or if it
appears to him without any
inquiry that the complaint
discloses matters which ought to
be inquired into he may forthwith
summon the person complained
against:
Provided that if the person

complained against attends in person
before the Director General it shall
not be necessary to serve a Remain
summons upon him;
(d) when issuing a summons to a

person complained against the
Director General shall give such
person notice of the nature of the
complaint made against him and
the name of the complainant and
shall inform him of the date, time
and place at which he is required
to attend and shall inform him that
62
SECTIO COMMENT
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he may bring with him any

witnesses he may wish to call on
his behalf and that he may apply
to the Director General for Remain
summonses to such persons to
appear as witnesses on his
behalf;
(e)when the Director General issues

a summons to a person
complained against he shall
inform the complainant of the
date, time and place mentioned
therein and shall instruct the
complainant to bring with him any
witnesses he may wish to call on
his behalf and may, on the
request of the complainant and Remain
subject to any conditions as he
may deem fit to impose, issue
summonses to such witnesses to
appear on behalf of the
complainant;
(f) when at any time before or during

an inquiry the Director General
has reason to believe that there
are any persons whose financial
63
SECTIO COMMENT
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interests are likely to be affected

by such decision as he may give Remain
on completion of the inquiry or
who he has reason to believe
have knowledge of the matters in
issue or can give any evidence
relevant thereto he may summon
any or all of such persons;
(g) the Director General shall, at the Remain

time and place appointed,
examine on oath or affirmation
those persons summoned or
otherwise present whose
evidence he deems material to
the matters in issue and shall
then give his decision on the
matters in issue;
(h) if the person complained against

or any person whose financial
interests the Director General has
reason to believe are likely to be Remain
affected and who has been duly
summoned to attend at the time
and place appointed in the
summons shall fail so to attend
the Director General may hear
64
SECTIO COMMENT
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and decide the complaint in the

absence of such person
notwithstanding that the interests
of such person may be
prejudicially affected by his
decision;
(i) in order to enable a court to

enforce the decision of the
Director General, the Director
General shall embody his
decision in an order in such form
as may be prescribed.
73. Prohibitory order by Director Prohibitory order by Director

General to third party General to third party
(1) Whenever the Director General (1) Whenever the Director General
shall have made an order under shall have made an order under
section 69, 69B or 69C against any section 69 , 69B or 69C against any
employer or any person liable for the employer or any person liable for the
payment of any sum of money to any payment of any sum of money to any
employee or contractor for labour employee or contractor for labour and
and the Director General has reason the Director General has reason to
to believe that there exists between believe that there exists between
such employer or person liable and such employer or person liable and
any other person a contract in the any other person a contract in the
course of the performance of which course of the performance of which
65
SECTIO COMMENT
N
the employee or sub-contractor the employee or sub-contractor

performed the work in respect of performed the work in respect of
which the order was made, the which the order was made, the
Director General may summon such Director General may summon such
other person and, if after enquiry he other person and, if after enquiry he is
is satisfied that such a contract satisfied that such a contract exists,
exists, may make an order in the may make an order in the prescribed
prescribed form prohibiting him from form prohibiting him from paying to
paying to the employer or person the employer or person liable and
liable and requiring him to pay to the requiring him to pay to the Director
Director General any money (not General any money (not exceeding
exceeding the amount found due to the amount found due to such
such employee or contractor for employee or contractor for labour)
labour) admitted by him to be owing admitted by him to be owing to the
to the employer or person liable in employer or person liable in respect
respect of such contract: of such contract:
Provided that where such other

person admits to the Director Remain
General in writing that money is
owing by him under such contract to
the employer or person liable he
need not be summoned to attend
before the Director General and the
Director General may make such
order in his absence:
Provided further that where such Remain
66
SECTIO COMMENT
N
other person is liable as a principal

under subsection 33(1) to pay any
wages due by the employer or
person liable and where the money
admitted by him to be owing to the
employer or person liable is not
sufficient to pay the whole of such
wages nothing in this subsection
shall relieve him of his liability for the
balance of such wages up to the
amount for which he is liable under
proviso (b) to the said subsection. Remain
(2) The payment of any money in

pursuance of an order under
subsection (1) shall be a discharge
and payment up to the amount so
paid of money due to the employer or
person liable under the contract.
77. Appeal against Director General’s Appeal against Director General’s

order to High Court order to High Court
(1) If any person whose financial (1) If any person whose financial
interests are affected is dissatisfied interests are affected is dissatisfied
with the decision or order of the with the decision or order of the
Director General under section 69, Director General under section 69,
69B, 69C, 73 or subsection 81D(4) 69B, 69C, 73 or subsection 81D(4)
67
SECTIO COMMENT
N
such person may appeal to the High such person may appeal to the High
Court. Court.
(2) Subject to any rules made under Remain

section 4 of the Subordinate Court
Rules Act 1955 [Act 55], the
procedure in an appeal to the High
Court shall be the procedure in a civil
appeal from a Sessions Court with
such modifications as the
circumstances may require.
PART XVA PART XVA

SEXUAL HARASSMENT SEXUAL HARASSMENT
81A. 81A. Interpretation. 81A. Interpretation.

Remain
For the purposes of this Part,
"complaint of sexual harassment"
means any complaint relating to
sexual harassment made-
(i) by an employee against another

employee;
(ii) by an employee against any

employer; or
68
SECTIO COMMENT
N
(iii) by an employer against an

employee.
81B. 81B. Inquiry into complaints of 81B. Inquiry into complaints of

sexual harassment. sexual harassment.
(1) Upon receipt of a complaint of (1) Upon receipt of a complaint of

sexual harassment, an employer or sexual harassment by any person
any class of employers shall inquire mentioned in section 81A, an
into the complaint in a manner employer or any class of employers
prescribed by the Minister. shall inquire into the complaint in a
manner prescribed by the Minister
accordance to section 14(1) and
(2).
(2) Subject to subsection (3), where
an employer refuses to inquire into (2) Subject to subsection (3), where
the complaint of sexual harassment an employer refuses to inquire into
as required under subsection (1), he the complaint of sexual harassment
shall, as soon as practicable but in as required under subsection (1), he
any case not later than thirty days shall, as soon as practicable but in
after the date of the receipt of the any case not later than thirty days
complaint, inform the complainant of after the date of the receipt of the
the refusal and the reasons for the complaint, inform the complainant of
refusal in writing. the refusal and the reasons for the
refusal in writing.
69
SECTIO COMMENT
N
an employer may refuse to inquire (3) Notwithstanding subsection (2), an

into any complaint of sexual employer may refuse to inquire into
harassment as required under any complaint of sexual harassment
subsection (1), if- as required under subsection (1), if-
(a) the complaint of sexual (a) the complaint of sexual
harassment has previously been harassment has previously been
inquired into and no sexual inquired into and no sexual
harassment has been proven; or harassment has been proven; or
(b) the employer is of the opinion that (b) the employer is of the opinion that
the complaint of sexual harassment the complaint of sexual harassment is
is frivolous, vexatious or is not made frivolous, vexatious or is not made in
in good faith. good faith.
(4) Any complainant who is (4) Any complainant who is

dissatisfied with the refusal of the dissatisfied with the refusal of the
employer to inquire into his complaint employer to inquire into his complaint
of sexual harassment may refer the of sexual harassment, may refer the
matter to the Director General. matter to the Director General.
(5) The Director General after (5) The Director General after
reviewing the matter referred to him reviewing the matter referred to him
under subsection (4)- under subsection (4)-
(a) if he thinks the matter should be (a) if he thinks the matter should be
inquired into, direct the employer to inquired into, direct the employer to
conduct an inquiry; or conduct an inquiry; or
(b) if he agrees with the decision of (b) if he agrees with the decision of
the employer not to conduct the the employer not to conduct the
inquiry, inform the person who inquiry, inform the person who
70
SECTIO COMMENT
N
referred the matter to him that no referred the matter to him that no
further action will be taken. further action will be taken.
81C. 81C. Findings of inquiry by 81C. Findings of inquiry by

employer. employer.
Where the employer conducts an Where the employer conducts an

inquiry into a complaint of sexual inquiry into a complaint of sexual
harassment received under harassment received under
subsection 81B(1) and the employer subsection 81B(1) and the employer
is satisfied that sexual harassment is is satisfied that sexual harassment is
proven, the employer shall- proven, the employer shall-
(a) in the case where the person (a) in the case where the person
against whom the complaint of against whom the complaint of sexual
sexual harassment is made is an harassment is made is an employee,
employee, take disciplinary action take disciplinary action which may
which may include the following: include the following:
(i) dismissing the employee without (i) dismissing the employee without
notice; notice;
(ii) downgrading the employee; or (ii) downgrading the employee; or
(iii) imposing any other lesser (iii) imposing any other lesser
punishment as he deems just and fit, punishment as he deems just and fit,
and where the punishment of and where the punishment of
suspension without wages is suspension without wages is
71
SECTIO COMMENT
N
imposed, it shall not exceed a period imposed, it shall not exceed a period
of two weeks; and of two weeks; and
(b) in the case where the person (b) in the case where the person
against whom the complaint of against whom the complaint of sexual
sexual harassment is made is a harassment is made is a person other
person other than an employee, than an employee, recommend that
recommend that the person be the person be brought before an
brought before an appropriate appropriate disciplinary authority to
disciplinary authority to which the which the person is subject to.
person is subject to.
81D. 81D. Complaints of sexual 81D. Complaints of sexual
harassment made to the Director harassment made to the Director
General. General.
(1) If a complaint of sexual (1) If a complaint of sexual

harassment is made to the Director harassment is made to the Director
General, the Director General shall General, the Director General shall
assess the complaint and may direct assess the complaint and may direct
an employer to inquire into such an employer to inquire into such
complaint. complaint.
(2) The employer shall inquire into (2) The employer shall inquire into the
the complaint of sexual harassment complaint of sexual harassment when
when directed to do so under directed to do so under subsection (1)
subsection (1) and submit a report of and submit a report of the inquiry to
the inquiry to the Director General the Director General within thirty days
72
SECTIO COMMENT
N
within thirty days from the date of from the date of such direction.
such direction.
(3) If a complaint of sexual
(3) If a complaint of sexual harassment received by the Director
harassment received by the Director General is made against an employer
General is made against an who is a sole proprietor, the Director
employer who is a sole proprietor, General shall inquire into such
the Director General shall inquire into complaint himself in a manner
such complaint himself in a manner prescribed by the Minister following
prescribed by the Minister. the procedures set in section 70
shall be applicable with necessary
modifications.
(4) Upon inquiry by the Director (4) Upon inquiry by the Director
General of the complaint of sexual General of the complaint of sexual
harassment under subsection (3), the harassment under subsection (3), the
Director General shall decide if Director General shall decide if sexual
sexual harassment is proven or not harassment is proven or not. and
and such decision shall be informed such decision shall be informed to the
to the complainant as soon as complainant as soon as practicable.
practicable.

(5) Notwithstanding subsection (3), the Director General may refuse to
the Director General may refuse to inquire into any complaint of sexual
inquire into any complaint of sexual harassment received under
harassment received under subsection (3), if-
subsection (3), if- (a) the complaint of sexual
73
SECTIO COMMENT
N
(a) the complaint of sexual harassment has previously been

harassment has previously been inquired into by the Director General
inquired into by the Director General and no sexual harassment has been
and no sexual harassment has been proven; or
proven; or (b) the Director General is of the
(b) the Director General is of the opinion that the complaint of sexual
opinion that the complaint of sexual harassment is frivolous, vexatious or
harassment is frivolous, vexatious or is not made in good faith.
is not made in good faith.
(6) Where the Director General
(6) Where the Director General refuses to inquire into the complaint of
refuses to inquire into the complaint sexual harassment received under
of sexual harassment received under subsection (3), he shall, as soon as
subsection (3), he shall, as soon as practicable but in any case not later
practicable but in any case not later than thirty days after the date of the
than thirty days after the date of the receipt of the complaint, inform the
receipt of the complaint, inform the complainant of the refusal and the
complainant of the refusal and the reasons for the refusal in writing.
reasons for the refusal in writing.
81E. 81E. Effects of decisions of the 81E. Effects of decisions of the

Director General Director General
(1) Where the Director General Remain

decides under subsection 81D(4)
that sexual harassment is proven,
the complainant may terminate his
74
SECTIO COMMENT
N
contract of service without notice.
(2) If the complainant terminates the Remain

contract of service under subsection
(1), the complainant is entitled to-
(a) wages as if the complainant

has given the notice of the
termination of contract of
service; and
(b) termination benefits and

indemnity;
as provided for under the Act or

the contract of service, as the
case may be.
81F. Offence. Offence.
Any employer who fails- Any employer who fails- to inquire

into complaints of sexual
harassment under subsection
81B(1) commits an offence.
(a) to inquire into complaints of
sexual harassment under (a) to inquire into complaints of sexual
subsection 81B(1); harassment under subsection 81B(1);
75
SECTIO COMMENT
N
(b) to inform the complainant of the (b) to inform the complainant of the
refusal and the reasons for the refusal and the reasons for the refusal
refusal as required under as required under subsection 81B(2);
subsection 81B(2);
(c) to inquire into compalints of sexual
(c) to inquire into compalints of harassment when directed to do so by
sexual harassment when the Director General under
directed to do so by the Director paragraph 81B(5)(a) or subsection
General under paragraph 81D(2); or
81B(5)(a) or subsection 81D(2);
or (d) to submit a report of inquiry into
sexual harassment to the Director
(d) to submit a report of inquiry into General under subsection 81D(2);
sexual harassment to the
Director General under commits an offence and shall, on
subsection 81D(2); conviction, be liable to a fine not
exceeding ten thousand ringgit.
commits an offence and shall, on
conviction, be liable to a fine not
exceeding ten thousand ringgit.
81G. 81G. Application of this Part 81G. Application of this Part
irrespective of wages of employee. irrespective of wages of employee.
Notwithstanding paragraph 1 of the Notwithstanding paragraph 1 of the

First Schedule, this Part extends to First Schedule, this Part extends to
every employee employed under a every employee employed under a
contract of service irrespective of the contract of service irrespective of the
wages of the employee. wages of the employee.
76
SECTIO COMMENT
N
81H. Nil Written code on prevention of

sexual harassment at the place of
employment
Every employer shall have a

written code on prevention of
sexual harassment and placed in a
conspicuous area at the place of
employment.
PART XVI PART XVI

PROCEDURE PROCEDURE
85A. 85A. Right of audience. 85A. Right of audience.
The Director General, or any officer The Director General, or any officer
authorized in writing by the Director authorized in writing by the Director
General, shall have the right to General, shall have the right to
appear and be heard before a appear and be heard before a
Magistrate Court or a Sessions Court Magistrate Court or a Sessions Court
in any civil proceedings under or or a High Court in any civil
arising out of this Act, or any proceedings under or arising out of
regulation made under this Act; and this Act, or any regulation made under
such right shall include the right to this Act; and such right shall include
appear and represent an employee the right to appear and represent an
in any such proceedings. employee in any such proceedings.
86 Saving clause as to civil Saving clause as to civil
77
SECTIO COMMENT
N
jurisdiction of courts jurisdiction of courts
Nothing in this Act shall be construed Nothing in this Act shall be construed
as preventing any employer or as preventing any employer or
employee from enforcing his civil employee from enforcing his civil
rights and remedies for any breach rights and remedies for any breach or
or non-performance of a contract of non-performance of a contract of
service by any suit in court in any service by any suit in court in any
case in which proceedings have not case in which proceedings have not
been instituted before the Director been instituted before the Director
General under section 69, 69B, 69C General under section 69, 69B, 69C
or subsection 81D(4) or, if instituted, or subsection 81D(4) or, if instituted,
have been withdrawn. have been withdrawn.
PART XVII PART XVII

OFFENCES AND PENALTIES OFFENCES AND PENALTIES
93. Under Part VIII. Under Part VIII.
An employer of a female employee An employer of a female employee

commits an offence if the female commits an offence if the female
employee is employed contrary to employee is employed contrary to
section 34,35 or 36. section 34,35 or 36.
99A. General penalty General penalty
99A. Any person who commits any 99A. Any person who commits any
offence under, or contravenes any offence under, or contravenes any
78
SECTIO COMMENT
N
provision of, this Act, or any provision of, this Act, or any
regulations, order, or other subsidiary regulations, order, or other subsidiary
legislation whatsoever made legislation whatsoever made
thereunder, in respect of which no thereunder, in respect of which no
penalty is provided, shall be liable, penalty is provided, shall be liable, on
on conviction, to a fine not exceeding conviction, to a fine not exceeding ten
ten thousand ringgit. thirty thousand ringgit.
PART XVIII PART XVIII

REGULATIONS REGULATIONS
102 Regulations
(1) The Minister may from time to Remain.

time make such regulations as may
be necessary or expedient for giving
full effect to the provisions of this Act,
or for the further, better or more
convenient implementation of the
provisions of this Act.
Remain.
(2) Without prejudice to the
generality of the foregoing the
Minister may make regulations-
Remain.
(a) limiting the powers of officers
appointed under section 3(2);
(b) prescribing the conditions under
79
SECTIO COMMENT
N
(b) prescribing the conditions under which female employees may work at

which female employees may work night;
at night;
Remain.
(c) prescribing the rate of the
maternity allowance to which female
employees shall be entitled during
the eligible period; Remain
(d) prescribing the maximum period

during which notice of dismissal
given by her employer to a female
employee who is absent from her
work as a result of illness certified by
a registered medical practitioner to
arise out of her pregnancy or Remain.
confinement shall not expire;
Remain.
(da) (Repealed)
Remain.
(e) (Repealed)
(f) prescribing the times which

employees shall be entitled to take
off from work for meals and which Remain.
they shall be entitled or required to
take off for rest;
80
SECTIO COMMENT
N
(g) prescribing the form of any Remain.

register, summons or order required
to be kept, issued or made under this
Act;
(h) prescribing the procedure for

sending summonses, warrants and
orders issued or made under this Act
in Malaysia for service or execution
in the Republic of Singapore, and (i) prescribing fees to be paid for filing
making provisions for the service or of claims under section 69, 69B or
execution in Malaysia of 69C and for copies of notes of
summonses, warrants and orders evidence recorded under Parts XV
issued or made in the Republic of and XVA;
Singapore;
Remain
(i) prescribing fees to be paid for
filing of claims under section 69, 69B
or 69C and for copies of notes of
evidence recorded under Parts XV Remain.
and XVA;
(j) prescribing penalties for failure to

comply with or contravention of any Remain.
regulation made under this section;
(k) prescribing the forms of notice

and returns of particulars used under (m) prescribing the terms and
81
SECTIO COMMENT
N
section 60K; conditions of service of a domestic

servant employee;
(l) prescribing the procedure to
inquire into complaints of sexual (n) prescribing any condition for
harassment under Part XVA; employer to grant employee rest
day for each week on any day of
(m) prescribing the terms and the month;
conditions of service of a domestic
servant.
(o) prescribing any condition to
(n) Nil. keep registers required under
subsection 61(1);
(o) Nil.
(p) prescribing matters relating to

discriminatory practices or
treatment.
(q) prescribing matters relating to

(p) Nil. flexible working arrangement.
82
FIRST SCHEDULE
First Schedule
[Subsection 2(1)]
Employee Provision of the Employee Provision of

Act not the Act not
applicable applicable
1. Any person, 1. Any person,

irrespective of his irrespective of the
occupation, who has amount of wages he
entered into a contract of earns, has entered into
service with an employer a contract of service
under which such with an employer under
person's wages do not which such person's
exceed two thousand wages do not exceed
ringgit a month. two four thousand
ringgit a month.
2. Any person who, 2. Remain

irrespective of the
amount of wages he
earns in a month, has
entered into a contract of
service with an employer
in pursuance of which-
(1) he is engaged in (1) he is engaged in
manual labour including manual labour including
such labour as an artisan such labour as an
or apprentice; artisan or apprentice;
83
Provided that where a Provided that where a
person is employed by person is employed by
one employer partly in one employer partly in
manual labour and partly manual labour and
in some other capacity partly in some other
such person shall not be capacity such person
deemed to be performing shall not be deemed to
manual labour unless the be performing manual
time during which he is labour unless the time
required to perform during which he is
manual labour in any one required to perform
wage period exceeds one manual labour in any
half of the total time one wage period
during which he is exceeds one half of the
required to work in such total time during which
wage period; he is required to work in
such wage period;
(2) he is engaged in the
operation or maintenance (2) he is engaged in the
of any mechanically operation or
propelled vehicle maintenance of any
operated for the transport mechanically propelled
of passengers or goods vehicle operated for the
or for reward or for transport of passengers
commercial purposes; or goods or for reward
or for commercial
(3) he supervises or purposes;
oversees other Part XII Part XII
employees engaged in (3) he supervises or
manual labour employed oversees other
by the same employer in employees engaged in
and throughout the manual labour employed
84
performance of their by the same employer in
work; and throughout the
performance of their
work;
(4) he is engaged in any (4) Remain

capacity in any vessel
registered in Malaysia
and who- (provision of
the Act not applicable -
Part XII)
(a) is not an officer

certificated under
the Merchant
Shipping Acts of
the United
Kingdom as
amended from
time to time;
(b) is not the holder of

a local certificate
as defined in Part
VII of the
Merchant Shipping
Ordinance, 1952;
or
(c) has not entered

into an agreement
under Part III of
85
the Merchant
Shipping
Ordinance, 1952;
or
Sections 12, 14, Sections 12, To enable domestic
16, 22, 61 and (5) he is engaged as a 14, 16, 22, 61 employee to enjoy
(5) he is engaged as a 64, and Parts IX, domestic servant and 64, and benefit of rest day.
domestic servant. XII and XIIA employee. Parts IX, XII
(except
Section
59(1)) and
XIIA
Sections
(6) Any person whose 60A, 60D(3),
(6) Nil wages exceeds five 60D(4) and
thousand ringgit a 60J
month.
3. Remain
3. For the purpose of
this Schedule "wages"
means wages as defined
in section 2, but shall not
include any payment by
way of commission,
subsistence allowance
and overtime payment.
86

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LAWS OF MALAYSIA

PROPOSED AMENDMENT TO EMPLOYMENT ACT 1955 [ACT 265]

2(1) “contractor for labour” means a “contractor for labour” means-

(c) a person who contracts to

2(1) “domestic servant” means a person “domestic servant employee” means a

work of a private dwelling-house the work of a private dwelling-house

“forced labour” means the

(a) to cease providing the

(b) to leave the place or area

2(1) “foreign domestic servant” means a “foreign domestic servant employee”

domestic servant who is not a means a domestic servant employee

Nil Notification of vacancy and

(1) The Director General may at any

time require any employer to

(2) Any employer who fails to

Nil Registration of Job Seekers

(1) Any person who wishes to

(2) For the purpose of

(a) within thirty days arrange for

(b) evaluate the jobseeker on

needed to secure a job;

(c) facilitate to enhance the job

(d) arrange for an interview with

For the purpose of this Part, “job

Nil Organising job fair or carnival

(1) No person shall organise a job

For the purpose of this section,

(2) Notwithstanding subsection (1),

fair or carnival for filling his

(3) Any person who fails to comply

Nil Discrimination in pre-employment

(1) An employer shall not

(a) in determining who should

(b) in the terms or conditions on

Provided that any distinction,

of a particular job based on the

(2) The Director General may

(3) An employer who fails to

7C Nil Presumption as to who is

A person who works for or renders

services to any other person is

(1) the manner of work is subject to

(2) the particular hours of work are

(3) the person’s work constitute

(4) the work is performed solely or

(5) the person is provided with

(6) payment of wages is made to

the person at regular intervals of

(7) such wages constitutes the

10 Contracts to be in writing and to Contracts to be in writing and to

(1) A contract of service for a (1) A contract of service for a

(2) In every written contract of Remain

(1) No employer shall

respect of employment and

(2) The Director General may

Provided that any distinction,

(3) An employer who fails to

17C Nil Prohibition of forced labour

(1) Subject to the Federal

(2) No person may for his or her

(3) Any person who

PART III PART III

22 Limitation of advances to Limitation of advances to