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Employment Act 1955 (Act 265)

Key Information

First Enacted: 1955 (F.M. Ordinance No. 38 of 1955)
Revised: 1981 (Act 265 w.e.f. 18 February 1982)
Latest Amendment (Act A1651): Effective 1 January 2023
Source: AGC - Act 265
Enforcer: Department of Labour Peninsular Malaysia


An Act relating to employment.

[Peninsular Malaysia—1 June 1957, L.N. 228/1957; Federal Territory of Labuan—1 November 2000, P.U. (A) 400/2000]

PART I - PRELIMINARY

Section 1. Short title and application

*NOTE

This Act has been extended to the Federal Territory of Labuan–see subsection 1(2) of the Federal Territory of Labuan (Extension and Modification of Employment Act) Order 2000 [P.U. (A) 400/2000] w.e.f. 1 November 2000.

Section 2. Interpretation

*OSHWARE NOTE

The Factories and Machinery Act 1967 [Act 139] has been repealed by the Factories and Machinery (Repeal) Act 2022 [Act 835] effective 1 June 2024.

Section 2A. Minister may prohibit employment other than under contract of service

Section 2B. General power to exempt or exclude

Section 3. Appointment of officers

Section 4. Appeals

Section 5. Effect on Act of other written laws


PART II — CONTRACTS OF SERVICE

Section 6. Saving of existing contracts

Section 7. More favourable conditions of service under the Act to prevail

Section 7A. Validity of any term or condition of service which is more favourable

Section 7B. Removal of doubt in respect of matters not provided for by or under this Act

Section 8. Contracts of service not to restrict rights of employees to join, participate in or organize trade unions

Section 9. (Deleted by *Act 40 of 1966)

*NOTE

The Children and Young Persons (Employment) Act 1966 [Act 40 of 1966] has since been revised as the Children and Young Persons (Employment) Act 1966 [Act 350].

Section 10. Contracts to be in writing and to include provision for termination

Section 11. Provision as to termination of contracts

Section 12. Notice of termination of contract

Section 13. Termination of contract without notice

Section 14. Termination of contract for special reasons

Section 15. When contract is deemed to be broken by employer and employee

Section 16. Employees on estates to be provided with minimum number of days’ work in each month

Section 17. (Omitted)

Section 17A. Apprenticeship contracts excluded from sections 10 to 16


PART III — PAYMENT OF WAGES

Section 18. Wage period

Section 18A. Calculation of wages for incomplete month’s work

Section 19. Time of payment of wages

Section 20. Payment on normal termination of contract

Section 21. Payment on termination of contract in special circumstances and on breach of contract

Section 22. Limitation on advances to employees

Section 23. Wages not due for absence from work through imprisonment or attendance in court


PART IV — DEDUCTIONS FROM WAGES

Section 24. Lawful deductions


PART V — SYSTEM OF PAYMENT OF WAGES

Section 25. Wages to be paid through financial institution

Section 25A. Payment of wages other than through financial institution

Section 26. Conditions restricting place at which, manner in which and person with whom wages paid to be spent, illegal

Section 27. Interest on advances forbidden

Section 28. Restriction on places at which wages may be paid

Section 29. Remuneration other than wages

Section 30. (Deleted by Act A1026).


PART VI — PRIORITY OF WAGES

Section 31. Priority of wages over other debts

Section 32. Reference by the court to Director General


PART VII — PRINCIPALS, CONTRACTORS, SUB-CONTRACTORS AND CONTRACTORS FOR LABOUR

Section 33. Liability of principals and contractors for wages

Section 33A. Information relating to supply of employees

*NOTE

Previously “ten”—see subparagraph 9(b)(iii) of the Employment (Amendment) Act 2022 [Act A1651].


PART VIII — EMPLOYMENT OF WOMEN

Section 34–36. (Deleted by Act A1651).


PART IX — PREGNANCY AND MATERNITY

Section 37. Length of eligible period and entitlement to maternity allowance

Section 38. Payment of maternity allowance

Section 39. Payment of allowance to nominee on death of female employee

Section 40. Loss of maternity allowance for failure to notify employer

Section 41. Payment of allowance to nominee

Section 41A. Restriction on termination of pregnant female employee

Section 42. Restriction on termination of female employee after eligible period

Section 43. Conditions contrary to Part void

Section 44. Register of allowances paid

Section 44A. (Deleted by Act A1651).


PART X — EMPLOYMENT OF CHILDREN AND YOUNG PERSONS

Section 45–56. (Deleted by *Act 40 of 1966).

*NOTE

The Children and Young Persons (Employment) Act 1966 [Act 40 of 1966] has since been revised as the Children and Young Persons (Employment) Act 1966 [Act 350].


PART XI — DOMESTIC EMPLOYEES

Section 57. Termination of contract

Section 57A. Employment of foreign domestic employee

*NOTE

Previously “ten thousand ringgit”—see paragraph 18(b) of the Employment (Amendment) Act 2022 [Act A1651].

Section 57B. Duty to inform Director General of termination of service of foreign domestic employee

*NOTE

Previously “ten thousand ringgit”—see paragraph 18(b) of the Employment (Amendment) Act 2022 [Act A1651].


PART XII — REST DAYS, HOURS OF WORK, HOLIDAYS AND OTHER CONDITIONS OF SERVICE

Section 58. (Omitted)

Section 58A. Non-application of Part XII

Section 59. Rest day

Section 60. Work on rest day

Section 60A. Hours of work and working at night

Section 60B. Task work

Section 60C. Shift work

Section 60D. Holidays

Section 60E. Annual leave

Section 60F. Sick leave

Section 60FA. Paternity leave

Section 60G. (Omitted)

Section 60H. (Omitted)

Section 60I. Interpretation


PART XIIA — TERMINATION, LAY-OFF AND RETIREMENT BENEFITS

Section 60J. Termination, lay-off and retirement benefits


PART XIIB — EMPLOYMENT OF FOREIGN EMPLOYEES

Section 60K. Employment of foreign employee

Section 60KA. Termination of employment of foreign employee, etc.

Section 60L. (Deleted by Act A1651).

Section 60M. Prohibition on termination of local for foreign employee

Section 60N. Termination of employment by reason of redundancy

Section 60O. Permanent resident exempted from this Part


PART XIIC — FLEXIBLE WORKING ARRANGEMENT

Section 60P. Flexible working arrangement

Section 60Q. Application for flexible working arrangement


PART XIII — REGISTERS, RETURNS AND NOTICE BOARDS

Section 61. Duty to keep registers

Section 62. Power to make regulations requiring information as to wages

Section 63. Duty to submit returns

Section 63A. Duty to give notice and other information

Section 64. Duty to display notice boards


PART XIV — INSPECTION

Section 65. Powers of inspection and inquiry

Section 66. Inspecting officer to notify presence

Section 67. Powers of inspecting officers

Section 68. Officers to be authorized by the Director General


PART XV — COMPLAINTS AND INQUIRIES

Section 69. Director General’s power to inquire into complaints

NOTES

*The Wages Councils Act 1974 [Act 195] has been repealed by National Wages Consultative Council Act 2011 [Act 732]—see Act 732, subsection 58(1) and section 60.
**Previously “ten thousand ringgit”—see subparagraph 28(b)(i) of the Employment (Amendment) Act 2022 [Act A1651].
***Previously “one hundred ringgit”—see subparagraph 28(b)(ii) of the Employment (Amendment) Act 2022 [Act A1651].

Section 69A. Limitation on power conferred by section 69

Sections 69B – 69E. (Deleted by Act A1651).

Section 69F. Discrimination in employment

Section 70. Procedure in Director General’s inquiry

Section 71. Director General’s record of inquiry

Section 72. Joinder of several complaints in one complaint

Section 73. Prohibitory order by Director General to third party

Section 74. No fees for summons: service of summons

Section 75. Enforcement of Director General’s order by Sessions Court

Section 76. Submission by Director General to High Court on point of law

Section 77. Appeal against Director General’s order to High Court

Section 78. Employee’s remedy when employer about to abscond

Section 79. Powers of Director General to investigate possible offences under this Act

*NOTE

The Electricity Act 1949 [Act 116] has been repealed by the Electricity Supply Act 1990 [Act 447] — see Act 447, subsection 56(1).

**OSHWARE NOTE

The Factories and Machinery Act 1967 [Act 139] has been repealed by the Factories and Machinery (Repeal) Act 2022 [Act 835] effective 1 June 2024.

Section 80. Examination on summons by the Director General

Section 81. Right of employee to appear before Director General


PART XVA — SEXUAL HARASSMENT

Section 81A. Interpretation

Section 81B. Inquiry into complaints of sexual harassment

Section 81C. Findings of inquiry by employer

Section 81D. Complaints of sexual harassment made to the Director General

Section 81E. Effects of decisions of the Director General

Section 81F. Offence

*NOTE

Previously “ten thousand ringgit”—see section 34 of the Employment (Amendment) Act 2022 [Act A1651].

Section 81G. (Deleted by Act A1651).

Section 81H. Notice on sexual harassment


PART XVI — PROCEDURE

Section 82. Service of summons

Section 83. Power to make reciprocal provisions between Malaysia and Singapore for the service, execution and enforcement of summonses, warrants and orders

Section 84. Jurisdiction

Section 85. Prosecution

Section 85A. Right of audience

Section 86. Saving clause as to civil jurisdiction of courts

Section 87. Power of court imposing fine

Section 87A. Court order for payments due to employee

Section 88. Effect of imprisonment

Section 89. Incapacity of Director General hearing inquiry

Section 90. Officers acting under Act deemed public servants

Section 90A. Protection of officers


Part XVII - OFFENCES AND PENALTIES

Section 90B. Forced labour

Section 91. Under Parts III and IV

Section 92. Under Part V

Section 93. (Deleted by Act A1651).

Section 94. Under Part IX

Sections 95-96. (Deleted by Act No. 40 of 1966).

*NOTE

The Children and Young Persons (Employment) Act 1966 [Act 40 of 1966] has since been revised as the Children and Young Persons (Employment) Act 1966 [Act 350].

Section 97. Under Part XIII

Section 98. Under Part XIV

Section 99. Under Part XV

Section 99A. General penalty

*NOTE

Previously “ten thousand ringgit”—see section 43 of the Employment (Amendment) Act 2022 [Act A1651].

Section 100. Penalties for failure or non-compliance in relation to rest days, overtime, holidays, annual leave, and sick leave

Section 101. Offence in connection with inquiry or inspection

Section 101A. Power to compound offences

Section 101B. Offence by body corporate, etc.

Section 101C. Presumption as to who is an employee and employer


PART XVIII - REGULATIONS

Section 102. Regulations

*NOTE

The Children and Young Persons (Employment) Act 1966 [Act 40 of 1966] has since been revised as the Children and Young Persons (Employment) Act 1966 [Act 350].


PART XIX - REPEAL AND SAVING

Section 103. Repeal and saving


SCHEDULES

FIRST SCHEDULE [Subsection 2(1)] – PROVISION OF THE ACT NOT APPLICABLE

EmployeeProvision of the Act not applicable
1.
Any person who has entered into a contract of service.
1A.
Notwithstanding paragraph 1, the person whose wages exceeds four thousand ringgit a month.
Subsections 60(3), 60A(3), 60C(2A), 60D(3), 60D(4) and section 60.
2.
Any person who, irrespective of the amount of wages he earns in a month, has entered into a contract of service with an employer in pursuance of which—
(1)
he is engaged in manual labour including such labour as an artisan or apprentice:
Provided that where a person is employed by one employer partly in manual labour and partly in some other capacity such person shall not be deemed to be performing manual labour unless the time during which he is required to perform manual labour in any one wage period exceeds one-half of the total time during which he is required to work in such wage period;
(2)
he is engaged in the operation or maintenance of any mechanically propelled vehicle operated for the transport of passengers or goods or for reward or for commercial purposes;
(3)
he supervises or oversees other employees engaged in manual labour employed by the same employer in and throughout the performance of their work;
(4)
he is engaged in any capacity in any vessel registered in Malaysia and who—
(a)
is not an officer certificated under the Merchant Shipping Acts of the United Kingdom as amended from time to time;
(b)
is not the holder of a local certificate as defined in Part VII of the Merchant Shipping Ordinance 1952 [F.M. 70/1952]; or
(c)
has not entered into an agreement under Part III of the Merchant Shipping Ordinance 1952; or
(5)
he is engaged as a domestic employee.
Sections 12, 14, 16, 22, 58A, 60, 60A, 60B, 60C, 60D, 60E, 60F, 60FA, 60I, 61 and 64, and Parts IX and XIIA
3.
For the purpose of this Schedule “wages” means wages as defined in section 2, but shall not include any payment by way of commissions, subsistence allowance and overtime payment.

SECOND SCHEDULE [Section 103] – LIST OF REPEALED LAWS

(1)(2)(3)
S.S Cap. 69
The Labour Ordinance
The whole, except section 1, the definitions under section 2 of “Agreement”, “Employer”, “Health Officer”, “Labourer”, “Lines”, “Local Authority”, “Place of employment”, sections 3, 4, 6, 27, 28, 33, 39, 43, 50, 111–113, 123, 124, 143, 145–163, 185–188, 194–196, 198–201, paragraphs 202(a), (b), (c) and (e), sections 203–206, 222–228, 230–233, 235–237, paragraph 239(1)(e)–(i), (k), subsections (2)-(4).
F.M.S. Cap. 154
The Labour Code
The whole, except section 1, the definitions under section 2 of “agreement”, “Court”, “employer”, “Health Officer”, “labourer”, “lines”, “place of employment”, “State Medical and Health Officer”, sections 3, 4, 70, 71, 76, 82, 87, 91, 117–119, 129, 130, 159–166, 168–191, 197–199, 201–203, paragraphs 204(a), (b), (c) and (e), sections 205–212, 220–222, 224–227, 229, 230, 231, 233, 234, 236, subparagraphs 238(i)(h)–(k), (ii)-(iv).
Johore Enactment No. 82
The Labour Code
The whole, except section 1, the definitions under section 2 of “agreement”, “Court”, “employer”, “Health Officer”, “labourer”, “lines”, “place of employment”, sections 3, 4, 5, 71, 72, 77, 83, 88, 92, 119–121, 131, 132, 149–156, 158–181, 187–189, 191–193, paragraphs 194(a), (b), (c) and (e), sections 195–202, 210–212, 214–217, 219–220, 222, 223, 225, subparagraphs 227(i)(h)–(k), (ii)–(v).
Kelantan Enactment No. 2 of 1936
The Labour Code 1936
The whole, except sections 1 and 2, the definitions under section 3 of “Agreement”, “Colony”, “Court”, “Employer”, “Health Officer”, “Labourer”, “Lines”, “Medical Practitioner”, “Place of employment”, sections 4, 5, 47, 48, 53, 59, 64, 68, 95–97, 107, 124–131, 133–156, 162–164, 166–168, paragraphs 169(a), (b), (c) and (e), sections 170–179, 187–189, 191–194, 196–198, 200, 201, 203, subparagraphs 205(i)(c)–(f), (ii).
Kedah Enactment No. 2 of 1345
Enactment No. 55 (Labour)
The whole, except section 1, the definitions under section 2 of “Agreement”, “Court”, “Employer”, “Labourer”, “Lines”, “Health Officer”, “Place of employment”, sections 3, 4, 45, 46, 51, 57, 62, 66, 94–96, 106, 107, 124–132, 134–157, 163–165, 167–169, paragraphs 170(a), (b), (c) and (e), sections 171–173, 181–183, 185–188, 190, 191, 193, 194, 196, paragraphs 198(1)(b)–(e), subsection (2).
Trengganu Enactment No.60 of 1356
The Labour Code
The whole, except sections 1 and 2, the definitions under section 3 of “agreement”, “Court”, “employer”, “Health Officer”, “labourer”, “line”, “Medical Officer”, “medical practitioner”, “place of employment”, sections 4, 5, 47, 48, 53, 59, 64, 68, 95–97, 107, 124–131, 133–156, 162–164, 166–168, paragraphs 169(a), (b), (c) and (e), sections 170–179, 187–189, 191–194, 196–198, 200, 201, 203, subparagraphs 205(i)(c)–(f), (ii).
Perlis Enactment of 1345
The Labour Code, 1345
The whole, except sections 1–3, the definitions under section 5 of “Agreement”, “Court”, “Employer”, “Labourer”, “Lines”, “Health Officer”, “Place of employment”, sections 6, 7, 47, 48, 53, 59, 64, 67, 95–97, 109, 110, 127–134, 136–159, 165–167, 169–171, paragraphs 172(a), (b), (c) and (e), sections 173–175, 183–185, 187–190, 192, 194, 196, 197, 199, subparagraphs 201(i)(b)–(e), (ii).
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