7 basic Malaysian labor laws you need to know

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Once you’ve stepped foot in the working industry, it’s time to get your adult-pants on and know what you’re entitled to and well, what you’re not.

Here’s where the Employment Act, 1995 comes in place. If you’re wondering what it is, it’s the Malaysian Labor Law. While it contains a million points, here are 7 basic things you should know.

1. Protection

If you earn less than RM1,500 then you’re protected completely (phew!). If you fall within the RM1,500 to RM5,000 then you are only partially protected but are given assistance by the big guys over at the Labour Office who will help enforce your contract of service. However, if you earn RM5,000 and above, then you’re on your own, buddy. Like, for reals.

2. Annual Leave

As per Section 60E, your leave entitlement depends on the number of years you’ve been employed at the company.

  • 2 years and below: minimum of 8 days
  • 2 – 5 years: minimum of 12 days
  • 5 years and above: minimum of 16 days

If you need more days then no pay leave lah bro.

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3. Overtime

If your boss is working you to the ground- fear not! Section 60A is here to rescue you! But… within reasonable measures, of course. Section 60A tells us working after stipulated working hours required a rate of one and a half times the regular rate of pay. Unless it’s stated in your contract and you buta-buta sign then…

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4. Signing of Contract

If you start working but do not sign the contract, is it still valid? Technically, yes lah. Signing the contract is a matter of formality but to prevent unnecessary catfights, misunderstandings and hours of gossiping after, we suggest you accept and sign or ask for time to ponder if you’re going to be the new person. As Shakespeare once said “to be or not to be, that is the question.”

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5. Probation Laws

These laws, do not exist. According to Section-its-not-there, probationers are protected under the general labour law and have the minimum benefits and entitlements, unless stated otherwise in your contract. Being on probation is just a way for le boss to keep an eye on you and see that you’re a good fit. In other words, behave and be normal until confirmed.

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6. Oral Termination

If your employer verbally tells you to leave without proper termination notice (cause you pissed them off), their request becomes invalid as the law requires all notices, terms and such to be written. If you forgo the need for a contract at the beginning because say, you’re buddies, then it gets a little gritty. Hence why mixing personal and professional is never a good idea.

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7. Payment Obligations

If you’ve been duped by your employer and have not received your income, EPF or Socso, then….you’ve picked the wrong employer, mate! But, there’s something you can do about it. Head down to the respective offices (SOCSO Office, EPF Office and Labour Office) and make an official report. The respective offices will then proceed with big-and-fancy investigations and work towards getting you what is rightfully yours…if it’s really yours. Don’t simply, simply la bro.

Editorial Team

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