Malaysian Labor Law Act - Labor Laws

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Saturday, October 17, 2015

Malaysian Labor Law Act

Flag of MalaysiaIn 1955, the government of Malaysia passed its comprehensive Labor Act, which remains in force as of 2010. All labor law is enforced by the Ministry of Labor, and employees are given the right to petition the ministry at any time. Regular plant inspections are mandated.


Hours

    All employment issues are matters of law. Like many codes of employment law, Malaysian law contains such features as the eight-hour day and 40-hour week, averaged over three weeks to include overtime. It is notable that the child labor portion of the act was repealed, and those protections nonexistent. All terminations of the labor contract must be given an eight-week notice for long-term employees (more than five years), but only four weeks for less than two years of service. The average work week (averaged over three weeks) cannot exceed 48 hours, and never more than 10 hours a day on average. No one can be required to work more than 12 hours in a day.

Advances

    Advances can be given at any time. However, they can only exceed one month's regular salary under the condition that the advance is requested in writing, and that the money is going to the purchase of a house, land, cattle or shares of the business. No back wages are permitted if the worker had been in prison or in court.

Women

    Women are forbidden to do night or underground work. Maternity leave is fully paid for at least 90 days if the woman has worked for the same employer for more than four months, or 90 days over the past nine months. If the woman dies in childbirth, the same amount of back pay goes to the family. The pay rate is identical to her normal monthly pay.

Vacation

    Malaysia requires one rest day per week. A "day" in Malaysian labor law is 30 hours. For each five hours of labor, 30 minutes of rest time is required. There are 10 public holidays that are fully paid and cannot be considered "vacation" days. Vacation days are eight days in a 12-month period for those working for the same employer less than two years, 12 days a year for those working between two and five years, and 16 days paid vacation a year for those working more than five years.

Sick Days

    Computation of sick leave is done the same as vacation, and is extremely generous. For employees working less than two years, they are entitled to 12 sick days, 18 for those working for the same employer between two and five years, and 22 days for those working for more than five years. If hospitalization is required, then all are to receive not fewer than 60 days. All sick days are paid if a doctor's note is included, especially with hospitalization.

Overtime

    Overtime is paid the same as regular wages so long as it does not exceed the average workweek of 48 hours maximum. If work is required on holidays and is a regular eight-hour shift, then the worker gets double time. All other overtime is paid at the regular rate. Overtime is required at times of local, national or company emergencies.


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