Labour and employment—Malaysia—Q&A guide

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Labour and employment—Malaysia—Q&A guide
  • 1. What are the main statutes and regulations relating to employment?
  • 2. Is there any law prohibiting discrimination or harassment in employment? If so, what categories are regulated under the law?
  • 3. What are the primary government agencies or other entities responsible for the enforcement of employment statutes and regulations?
  • 4. Is there any legislation mandating or allowing the establishment of employees’ representatives in the workplace?
  • 5. What are their powers?
  • 6. Are there any restrictions or prohibitions against background checks on applicants? Does it make a difference if an employer conducts its own checks or hires a third party?
  • 7. Are there any restrictions or prohibitions against requiring a medical examination as a condition of employment?
  • 8. Are there any restrictions or prohibitions against drug and alcohol testing of applicants?
  • 9. Are there any legal requirements to give preference in hiring to, or not to discriminate against, particular people or groups of people?
  • More...

Labour and employment—Malaysia—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to labour and employment in Malaysia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: April 2020).

Authors: SKRINE—Selvamalar Alagaratnam; Siva Kumar Kanagasabai; Foo Siew Li

1. What are the main statutes and regulations relating to employment?

The main statutes and regulations relating to employment in Malaysia are as follows:

Employment Act 1955

The Employment Act (EA) applies to employees employed in West Malaysia who:

  1. earn a monthly salary of 2,000 ringgit and below; or

  2. regardless of salary quantum, are employed:

    1. as manual labourers or supervisors of manual labourers;

    2. to operate or maintain any mechanically propelled vehicle for the purpose of transporting passengers or goods or for reward or commercial purposes;

    3. as a domestic servant; and

    4. in certain positions on seagoing vessels.

The states of Sabah and Sarawak in East Malaysia have equivalent legislation (with some differing provisions) that cover similar categories of employees.

Industrial Relations Act 1967

This Act applies to all employees in Malaysia and governs the relations between employers and employees (including trade unions) and the prevention and settlement of disputes.

Trade Unions Act 1959

This Act regulates the registration and constitution of trade unions and the rights and liabilities of trade unions.

Employees Provident Fund Act 1991

The Employees Provident Fund Act (the EPF Act) applies to all employees in Malaysia. The Act makes

Popular documents