Chapter 3

Employment
Law
MUHAMAD IKHWAN BIN MOHD ZAIN
UiTM PERAK BRANCH TAPAH CAMPUS

Intention during class: "O Allah, increase my knowledge" (20:114)

At the end of the topic, you can:

a) Distinguish between employees and the self-employed and explain the

difference between a contract of service and a contract for services.

b) Explain the main rights and duties placed on the employer and employee
under statute.

c) Explain termination of employment

d) Identify and briefly discuss dismissal and remedies for unfair dismissal
MATERIAL

1. Lecture Slide Notes

2. Textbook
3. Youtube
4. Statute: Employment Act 1955
5. Mindmap
ASSESMENT AND
REFLECTION
Group Assignment (10 marks)
Table of contents

WHAT? HOW?
01 1. Employee vs Self-Employed 03 Termination of
2. COS vs CFS employment

RIGHT & DUTIES DISMISSAL

02 1. Employee 04 What is dismissal?
2. Employer Remedies

Intention during class: "O Allah, increase my knowledge" (20:114)

01
Definition

Intention during class: "O Allah, increase my knowledge" (20:114)

What is Main legislation
Employment Act
Employment? 1955
Work or service performed by an
individual to the task at hand for Industrial
another person or entity in exchange Relation Act
for wages or other remuneration 1967
Employment Law comes to regulates Trade Union Act
the operation of the labor market in
general and the employment 1959
relationship between employers and
employees in particular.
Intention during class: "O Allah, increase my knowledge" (20:114)
Section 2(1)(a) of EA 1955 + First
Schedule

■ Wages do not exceed RM2K/month

■ Exceed; engaged in manual labour
■ Engage in operation or maintenance
Employee ■ Supervised manual labour (supervisor)
■ Engaged in domestic servant
■ Engaged in any capacity in any vessel

Intention during class: "O Allah, increase my knowledge" (20:114)

 Intention during class: "O Allah, increase my knowledge" (20:114)

Employment Act 1955

Sec 2(1) Sec 2(1)

Employer COS/COE
Any person enters Any agreement whereby one
COS to employ person agrees to serve his
any other person employer as an employee
as an employee. (includes apprenticeship
contract)

Relationship is constituted
of employer and employee.
CFS (Contract For Services)/
Independent Contractor
Involves when people who contract to provide services for
another otherwise than under a contract of employment
are known as independent contractors.

A person is “in business on their account”. Business for

himself or he is self-employed. Eg: garage proprietors,
house builders, taxi driver.

■ No control over him

■ Have to provide his own insurance
■ Have to set their own annual leave or medical leave
■ Wil be personally liable
■ No Duty of Care
Intention during class: "O Allah, increase my knowledge" (20:114)
 Other Relevant Legislation

Sec 1A
CYP(E)A 1966
Sec 1A Sec 2
Young Person
CYP(E)A 1966 14 -16 years old. IRA 1967

Child Workman
Any person, including
Under age of 14
apprentice, under COE to
work for hire or rewaed
Intention during class: "O Allah, increase my knowledge" (20:114)
 TEST TO DISTINGUSH COS vs CFS
Control Test
Relies on the ability of the employer to exercise
control over the employee in relation to the
work done h/e not conclusive since how to
control professionals
• Yewens v Nokes
• Short v J&W Henderson
• Bata Shoe Company (M)Ltd v EPF Board
Mixed / Multiple Test
i) power of selection
ii) payment of wages/remuneration
1 3 iii) right of suspension/dismissal
iv) right of control (legal authority to exercise control
• Ready Mixed Concrete v MPNI

Integration Test Intention

Work done as an integral (whether part &
parcel) of the business. Whereas CFS only 2 4 Depends on whole factual circumstances. If
ambiguous, base on intention.
accessory to it.
• Stevenson Jordan and Harisson v Macdonald • Massey v Crown Life Insurance
and Evans
• Mat Jusoh bin Daud v Syarikat Jaya Seberang
Takir
Intention during class: "O Allah, increase my knowledge" (20:114)
FORMATION OF COS
Sec 10(1)
Exceed one month

Sec 2(1)
Apprenticeship contract: > 2 years

Sec 5(b) & Sec 8

Employment Regulations 1957
(10 details)

Intention during class: "O Allah, increase my knowledge" (20:114)

 02
Right &
Duties
EMPLOYER vs EMPLOYEE

Intention during class: "O Allah, increase my knowledge" (20:114)

MAIN DUTY OF EMPLOYER

Employer must
1

1 2 3
Observe Health and
Pay Wages Provide works
Safety Regulation
Sec 19
Sec 60(2) Manlio Vasta v Inter
Sec 25(1), 25A
Ocean Salvage & Towage
Sec 61
Sec 60A(3)(a) Intention during class: "O Allah, increase my knowledge" (20:114)
OTHER DUTIES OF
EMPLOYER
Right & Record &
- Opportuniry
Under the contract
S.44 Register
Offence for not keeping

Trust & Employment Insurance

- Confidence
Respect each other
S24(1) System Act 2017
Cannot reduces wages

Record & Employees Social

S. 61 Register
Must keep for
S.7(1) Security Act 1969
Pay both from employer
inspection & employee contribution
Intention during class: "O Allah, increase my knowledge" (20:114)
Duties of Employee

■ To perform well
■ To follow instructions
■ To handle with due care
■ To report for work always
■ To give proper aid
■ To inform employer for any endanger
acts
■ To inform maternity leave (sec 40(2))

Intention during class: "O Allah, increase my knowledge" (20:114)

RIGHT OF THE EMPLOYER
Employee (not monthly-
rated employee) is not
entitled to any pay for a
gazzetted public holiday if
he is on unpaid leave

Intention during class: "O Allah, increase my knowledge" (20:114)

RIGHT OF EMPLOYEE UNDER
CYPEA 1955
Child/Young Person
S4 6 days over 7 days.

Period for Children

S 5(1) Not allowed within 8PM-7AM (except for public
entertainment)
3 hours max with 30 minutes rest
6-7 hours only

Period for Young Person

S 6(1) Not allowed from 8PM-6AM
4 hours with 30 rests
7-8 hours per day

Intention during class: "O Allah, increase my knowledge" (20:114)

RIGHT OF EMPLOYEE UNDER EA1955

Wages Period
Not allowed to Work 5 hours
received from any get 30 minutes
other employee break
S.59(1) S 27 S 34(1) S 60A(1) S 60C(1)
Industrial/
Rest Day Shift Work
Agriculture
One Day per week Work within 8-12
NO Female Employee
can work between hours (OT)
10PM – 5AM Total 48 hours/week
Cannot work exceed
11 hours
Intention during class: "O Allah, increase my knowledge" (20:114)
Group Assignment (20m)
1. Explain the right of employee to have holidays
and leaves.

2. How to terminate an employee with notice or

without notice?

3. Explain what is the dismissal and types of

dismissal

Intention during class: "O Allah, increase my knowledge" (20:114)

RIGHT TO LEAVE
Rest Day Sec 59 & 60 : 1 day per week

Public Holiday Sec 60D (10 days gazette PH)

Length of Service Paid Sick Leave (Days)

Sec 60F
Sick Leave
< 2 years 14 days

2 years – 5 years 18 days

> 5 years 22 days – 60 days

Maternity Leave Sec 37 - 44A (90 days : 3 kids)

Length of Service Annual Paid Leave (Days)

Annual Leave” Sec 60E < 2 years 8 days

2 years – 5 years 12 days

> 5 years 16 days

03
Termination

Intention during class: "O Allah, increase my knowledge" (20:114)

Termination of Employment

S 10 S 11 S 12 S 60E(3A)

COS > 1month

For Specific
Period
Notice Annual Leave
Contracts to be Terminated at (1)Either party Entitled to the
in writing and to the agreed gives notice ordinary rate of
include provision period. (2) If not, follow pay
for termination the schedule
Intention during class: "O Allah, increase my knowledge" (20:114)
TERMINATION WITHOUT NOTICE

Circumstances

Sec 13(2)
Willful breach on term Sec 14(1)
and condition Misconduct
Sec 14(3)
Sec 13(1)
Threatened by
Paying indemnity
danger of death
equal to the amount
of wages
Intention during class: "O Allah, increase my knowledge" (20:114)
Dismissal – Sec 21(1)
An act of an employer to terminate the contract of Sec 20(1) of IA 1967
service unilaterally. By such act, the employee ceases
Wong Chee Hong v Cathay
to be in the services of the employer
Organisation
Fung Keong Rubber Manufacturing
Ireka Construction Berhad
Constructive Metroplex Administration Sdn Bhd
Dismissal Suhaimi Safari v Safeguards
where your employer's
actions (for example, Employer's
extreme bullying) force action when terminating an
you to resign. employee's contract unfairly
Unlawful
Sec 59 of IA 1967
KGN-Hin Bus Company
Dismissal
Sdn Bhd v Ferdaus Md
Hassan Intention during class: "O Allah, increase my knowledge" (20:114)
Thanks!
ONE TOPIC ONE QUOTE

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