CASE STUDY 2

HUMAN RESOURCE MANAGEMENT

(DPB 50123)

PREPARED BY:

NAME NUMBER MATRIC

NUR KHAIRINA BINTI KHARUDIN 17DSK20F2026

NUR AINA HUSNA BINTI AZMI 17DSK20F2045

NUR IRDINA KHALIESAH BINTI ROKBI 17DSK20F2060

SITI NUR EILYANA BINTI HASNUDDIN 17DSK20F2049

PREPARED TO:

DR. ROSMANIZAH BINTI DERAHMAN

COMMERCE DEPARTMENT
 TABLE OF CONTENTS

NO. CONTENTS PAGE

1. Key Incidents 3-6

2. Summary 7

3. Benefits 8-9

4. Types 9-11

5. Methods 11-13

6. References 13

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 1. Key incidents in Malaysia’s human resource landscape

Malaysia takes steps to protect gig

workers’ welfare
Malaysia plans to include gig workers in a
social security scheme and is considering
specific legislation to safeguard their welfare.
By: Josephine Tan | March 1, 2023
Topics: Compensation and Benefits | Compliance | Employment Law
| Malaysia | News
Malaysia is set to implement a policy that will require all self-
employed individuals, including gig workers, to contribute to the Self-
Employed Social Security Scheme (SKSPS). This policy, which is being
spearheaded by the Ministry of Human Resources, aims to provide
insurance coverage for all sectors and address the challenges faced by
gig workers, who currently lack specific policies or legislation to
safeguard their welfare.

According to V Sivakumar, Malaysia’s Human Resources Minister, gig

economy workers do not enjoy the protection of the Work Act 1995,
Labour Ordinance (Sabah Chapter 67), and Labour Ordinance
(Sarawak Chapter 76), and are not entitled to the benefits of the
minimum wage.

He also cited data from the Social Security Organisation (Socso),

which indicates that 374,906 self-employed individuals in Malaysia
have SKSPS protection, out of which 315,107 are active p-hailing riders
and 59,799 are e-hailing workers. P-hailing riders refers to food and
parcel delivery riders, whereas e-hailing workers refers to drivers who
work for ride-hailing organizations.

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READ: Stay employed by being relevant, employees in
Malaysia told

To address the challenges faced by gig workers, Sivakumar said the

ministry is studying the protection of gig workers in specific legislation
to safeguard their welfare, including those who are self-employed.

“Various initiatives and programmes have been implemented as an

encouragement for the informal sector workers, including gig
economy workers, to register and contribute to Socso. These include
Socso appointing a corporate agent to help encourage workers in the
sector to contribute to SKSPS,” he said, reported New Straits Times.

(This is article that has been taken from the hrmasia.com website,
https://hrmasia.com/malaysia-takes-steps-to-protect-gig-workers-welfare/ )

As explained in the article, the problem of this gig economy which is also identified with short-
term jobs or done independently is the main job in Malaysia and one of the jobs is Grab,
FoodPanda and others.

Because of that, in terms of their safety and health, they are not well looked after by their
superiors. The challenges that arise include:

● Creating and enforcing health and safety processes at the company

● Providing employee training and documentation of course completion to prove compliance

with health and safety measures

● Monitoring and adapting to local health and safety laws

● Tracking instances of workplace injuries or safety violations to protect against potential

workplace compensation lawsuits

Like with employment laws and regulations, failure to execute a thorough health and safety
program can expose the company to costly lawsuits and injury claims.

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Therefore, problems like this should be handled best by the superiors. Potential solutions to this
challenge include:

● Designating a health and safety person or committee at your organization

● Giving them the tools and training needed to study and understand local health and safety
laws

● Empowering them with absolute control over health and safety at the organization,
including the power to make changes, upgrades, or even shut down operations
temporarily if needed

Health and safety should be a top priority for any company. As such, this challenge should be on
your shortlist to tackle as soon as possible.

In addition, compassion management is also very important for this economy gig. This is because
their management is not taken care of and their salary is not comparable to the job they are given.
They have to face the changing weather and have to work overtime because they have to reach
the target in the company every day.

Compensation and benefits are one issue that no Human Resource organization can get around.
This is the core concern for all employees and has an immense impact on everything from
performance to engagement to productivity.

This gives economy gigs that are not well valued and treated differently than other government
or private sector workers. Challenges that arise include:

● Knowing how to structure compensation packages to stay competitive in your industry

● Monitoring the recruitment landscape to see what others are offering

● Matching compensation demand in the market, especially if you're trying to compete

against larger competitors

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 ● Providing competitive perks, employee benefits, and bonuses that align with what your
ideal candidates want

Potential solutions to this challenge include:

● Looking for free tools like Payscale and Glassdoor to create benchmark salaries that are
based on aggregated real data

● Shortlisting competitors to watch and analyze what they promote on their careers sites in
terms of perks, benefits, and compensation

● Focusing on employer branding and culture messaging to create intangible benefits for
candidates

● Being creative with compensation to make up for less-than-competitive salaries

The bottom line is that larger companies can and likely will outspend smaller ones to land the best
talent. To combat that reality, smaller companies should look to pitch what's unique and appealing
about their company.

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 2. Summary of this case study
A trade union is an organization made up of members (a membership-based organization) and
its membership must be made up mainly of workers. One of a trade union's main aims is to
protect and advance the interests of its members in the workplace. Most trade unions are
independent of any employer. However, trade unions try to develop close working relationships
with employers. This can sometimes take the form of a partnership agreement between the
employer and the trade union which identifies their common interests and objectives.

Trade unions:
● Negotiate agreements with employers on pay and conditions
● Discuss major changes to the workplace such as large-scale redundancy
● Discuss members' concerns with employers
● Accompany members in disciplinary and grievance meetings
● Provide members with legal and financial advice
● Provide education facilities and certain consumer benefits such as

Employers which recognize a union will negotiate with it over members' pay and conditions.
Many recognition agreements are reached voluntarily, sometimes with the help of the Labor
Relations Agency. If agreement can't be reached and the organization employs more than 20
people, a union may apply for statutory recognition. To do so, it must first request recognition
from the employer in writing. If this is unsuccessful, the union can apply to the Industrial Court
for a decision.

In considering the union's application, the Court must assess many factors including the level of
union membership and the presence of any other unions. Often, the Court will organise a ballot
among the affected workforce to decide whether recognition should be awarded. Throughout
the process, the emphasis is on reaching voluntary agreement.discounted insurance.

The law gives you the right to join a trade union wherever you work. This right applies whether a
union has been recognised or not. You're protected from being disadvantaged for being a union
member. Specifically trade union membership is an unlawful reason for:

● Refusing you employment

● Dismissing you
● Selecting you for redundancy
● Trade union membership: your employment rights

The law gives you the right not to join a trade union. The same protection applies to you as it
does to union members. In particular, employers are not permitted to operate a 'closed shop'
(that is, make all workers join the employer's preferred union). An employer can't deduct
payments from you, to a union or charity in lieu of union membership without your permission.

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3. Benefits of joining a trade a union

● Collective bargaining: To achieve higher pay and benefits, improved working conditions,
and other workplace-related concerns, trade unions negotiate with employers on behalf of
their members. One of the primary roles of a trade union is collective bargaining. It is the
most effective way to control the circumstances of employment. Determine the terms and
conditions that the employer and the employees have agreed upon. The Industrial
Relation Act 2967, which governs collective bargaining in Malaysia, defines it as
negotiation and discussion to arrive at a collective bargaining agreement that benefits the
employer, trade union members, and non-members.

● Legal protection: In Malaysia, trade unions are legally entitled to represent employees in
disputes with employers. This means that union members have legal protection and
representation at work in the event of any problems or conflicts. Salary, benefits, and
overtime pay are examples of compensation.

● Health and safety: Trade unions can fight for improved workplace health and safety
regulations, ensuring that their members are safeguarded from dangers and risks.
Workers and management can collaborate closely with trade union safety representatives
to help promote a working environment where risks are recognized, eliminated, or
effectively controlled before issues arise. These representatives are knowledgeable about
the dangers in the workplace. In small businesses, however, there are many informal
laborers in the construction industry. To ensure that they are covered by union safety
representatives, this presents specific challenges.

● Training and development: Trade unions in Malaysia frequently offer training and
development opportunities for their members, assisting them in gaining new skills and
advancing their careers. For instance, Malaysia offers a large number of employment
options. Employees can also discover deeper skills by concentrating on their industry as
well as experimenting with fresh ideas to come up with amazing ones. indirectly enhance
the reputation of the business or the caliber of the work itself.
● Support and community: Trade unions foster a sense of belonging and solidarity among
members, assisting in the development of solid connections and support systems among
workers. This means that no one in the workplace picks a racist coworker, for instance,

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 and that this attitude shouldn't be imitated or used because it will lead to racial tensions
between races. A conflict will make the working environment tense as well.

● Political influence: Trade unions in Malaysia are able to influence politics through
promoting laws and policies that benefit employees and their families and by arguing to
decision-makers on behalf of workers' rights. This refers to the benefits of working for the
government, such as free laundry services and future pension benefits for police officers.
Employees in the private sector have access to EPF and SOCSO to help protect their
future. SOCSO is an insurance programmed offered by the company that is deducted
each month for standby in the event that an employee gets hurt.

● Overall, joining a trade union in Malaysia can help workers to achieve better working
conditions, fair treatment, and improved opportunities, while also providing a sense of
community and support. It is worth noting that Malaysia's labor laws and regulations can
be complex, and joining a trade union can help workers navigate these complexities and
ensure that their rights are protected.

4. Types of industrial action in Malaysia

In Malaysia, there are several types of industrial actions that can be undertaken by workers to
address grievances and negotiate better working conditions. Here are three common types of
industrial action:

1. Strikes: Strikes involve workers collectively ceasing work to protest against their
employers. There are two main types of strikes.
- Sit-down strikes: In a sit-down strike, workers refuse to leave the workplace but halt their
productive activities, such as operating machinery or performing duties. They might
occupy the premises peacefully to demonstrate their grievances until their demands are
met.
- Work stoppage strikes: In a work stoppage strike, employees completely halt their work
and leave the workplace. This type of strike often involves picket lines outside the
employer's premises, where striking workers gather to show solidarity and discourage
replacement workers.

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It's important to note that for a strike to be legal in Malaysia, certain requirements and
procedures must be followed, including providing advance notice to the employer and obtaining
approval from the Director General of Industrial Relations.

2. Work slowdowns: Work slowdowns, also known as "go-slows," involve employees

intentionally reducing their work pace or output to put pressure on employers without
completely stopping work. Workers may deliberately perform tasks at a slower rate or
follow strict adherence to regulations, causing productivity to decline. The aim is to
inconvenience the employer and demonstrate dissatisfaction with the current working
conditions or wage rates.

Work slowdowns are a less confrontational form of industrial action compared to strikes, as they
do not involve a complete cessation of work. However, they can still disrupt production and
force employers to address workers' concerns.

3. Work-to-rule actions: Work-to-rule actions involve employees adhering strictly to the

terms and conditions outlined in their employment contracts or following every rule and
regulation to the letter. Workers intentionally avoid taking any initiative or making
discretionary efforts that go beyond their contractual obligations. By meticulously
following procedures and protocols, employees can slow down operations, cause
delays, and expose inefficiencies within the workplace.

Work-to-rule actions are a subtle form of industrial action that aims to draw attention to systemic
issues and emphasize the importance of fair treatment and reasonable work expectations.
While not as disruptive as strikes or work slowdowns, they can still exert pressure on employers
and disrupt regular workflows.

It's worth noting that industrial actions should always be carried out in accordance with the
applicable labor laws and regulations in Malaysia to ensure the protection of workers' rights and
avoid any legal consequences.

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5. Methods to solve industrial dispute

● Negotiations
When negotiations fail, both employers and employees may resort to these extreme
measures: striking and locking out. In lockouts, business operations are suspended until
the workers accept the employers' demands, while strikes entail employees refusing to
report to work until their demands are met. The spokespeople or representatives of
management and labor must be sufficiently powerful to bind both parties to the negotiation.
The pay scale used by the company as well as the pay scales in the region and the
industry must be thoroughly understood by the representatives.They must be
knowledgeable about all the issues involved and familiar with earlier court rulings on
instances just like this. They should carefully review each of the contract's proposed
clauses before reaching a tentative understanding. A deal is only signed by the parties
when all outstanding issues have been resolved.Labour agreements typically include
contract provisions that specify information about union membership, the length of the
agreement, the process for termination or amendment, wages and hours, overtime, shift
differentials, insurance and other benefits, seniority, grievance procedure, and hiring
requirements.

● Conciliation
Conciliation is a process to resolve the dispute where representatives of workers and
employers are brought together before a third party (conciliation officer) with a view to
convince them to arrive at mutual settlement. The conciliation officer basically acts as a
catalyst who deals with parties separately and collectively in order to provide an effective
solution to the dispute. The appropriate government may appoint one or more conciliation
officers, charged with the duty of mediating in and promoting the settlement of industrial
disputes. Section 12 of the Act provides the duties of conciliation officer wherein the
conciliation officer is required to hold conciliation proceedings in case of any industrial
dispute or where the dispute relates to a public utility service and a notice under section
22. Other duties include investigation of disputes, appropriate steps to settle the dispute,
submission of reports to appropriate government, etc.
Similarly, a board of conciliation (constituted under Section 5 of the Act) may also be
referred for settlement of the dispute. The Board of Conciliation is another authority
recognized under the Industrial Disputes Act, 1947 to promote the settlement of industrial

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 disputes. Duties of the Board are similar to the duties of a conciliation officer like to take
necessary steps for settlement of the dispute, submission of reports and memorandum of
settlement to appropriate Government within 2 months. In case of no settlement, the Board
must submit the full report of steps taken by it while working for the settlement. The report
shall be in writing and signed by all the members of the Board.
● Collective bargaining
“Collective Bargaining” is the process of negotiating terms of employment and other
conditions of work between the representatives of management and organized labor.
When it is free of intimidation and coercion and is conducted in good faith, collective
bargaining culminates in a workable contract i.A labor contract is a collective agreement
between the representatives of labor and management for the sale of labor services at
designated wage rates, hours of work, and other terms of employment and conditions of
work for a stated period of time.The contract usually calls for joint enforcement and
administration of the agreement. Responsible labor leaders and employers are
increasingly settling their differences around the conference table rather than through
industrial warfare. The process of bargaining the settlement of disputes is often
facilitated through outside assistance in the form of conciliation, mediation, or
arbitration.The representatives or spokesmen of management and labor must have
sufficient authority to bind each side in the negotiation. The representatives must have a
thorough knowledge of the company’s wage scale and the wage scales of the industry
and the area.
They should be well versed in all points at issue and know past court decisions relating
to similar cases. They should study all the proposed clauses to the contract and arrive at
tentative agreements. The negotiators sign an agreement only after all outstanding
issues are settled.Contract provisions in labor agreements generally stipulate details
concerning union membership; the duration of agreement; the procedure for termination
or amendment; wages and hours; overtime; shift differentials; insurance and other
benefits; seniority; grievance procedure; and conditions for hire, promotion, or dismissal.
● Arbitration
Arbitration is a more formal process where a neutral third party, called an
arbitrator, listens to both sides of the dispute and makes a binding decision. The
arbitrator acts as a judge and renders a final verdict, which is typically
enforceable by law. Arbitration can be voluntary or mandated by law, depending
on the jurisdiction and the parties' agreement.

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 - Arbitration agreement: Before a dispute arises, the parties involved may
include an arbitration clause in their contract or agreement, stating that
any disputes will be resolved through arbitration rather than going to
court. This agreement establishes the basis for arbitration and sets out
the rules and procedures that will govern the process
- Selection of arbitrator: The parties typically have the opportunity to agree
on a mutually acceptable arbitrator. If they cannot agree, the selection
may be made through a designated arbitration institution or organization
that provides a list of qualified arbitrators. The chosen arbitrator should be
impartial and possess expertise in the subject matter of the dispute.
- Arbitration process: The arbitration process begins with the submission of
a claim by the party initiating the dispute. The opposing party then
responds with their arguments and evidence. The arbitrator may hold
hearings where both parties present their case, including witness
testimony and documentary evidence. The arbitrator then evaluates the
evidence, applies the relevant laws or contractual provisions, and issues
a final decision, known as an arbitral award.

6. Reference

● https://www.whatishumanresource.com/industrial-relations
● https://www.ioe-emp.org/policy-priorities/industrial-relations
● https://www.britannica.com/topic/collective-bargaining

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