Sunday, January 30, 2011

Employment Law in Malaysia



WHAT IS EMPLOYMENT?
Employment means work or service performed by an individual to the task at hand for another person or entity in exchange for wages or other remuneration.
WHAT IS EMPLOYMENT LAW?
Employment Law is the law which regulates the operation of the labour market in general and the employment relationship between employers and employees in particular. Examples include hiring process, suspension from work, maternity rights, layoff and wages.
The obligations and rights of an employment contract are covered by the Employment law.
When an offer for employment is made by an employer to an employee, the law governing the relationship between an employee and an employer begins.
WHAT ARE THE BASIC TERMS USED TO DESCRIBE THE EMPLOYMENT RELATIONSHIP?
An employer in relation to an employee or a workman, means a person by whom the employee or workman is employed. An employer obtains the services of another to perform work and has direct control of the way in which the work is to be done.
An employer shall provide the means through which the services will be performed such as providing a place where the work is to be performed and tools required to get the job done.
Contract of service means any agreement, whether express or implied, and if express, whether oral or in writing where the employer agrees to employ and the employee agrees to be employed and includes an apprenticeship contract.
In general, an employee means a person who has entered into or works under a contract of employment. There are different interpretations for the term, employee, in different Acts governing the labour market in Malaysia. Those interpretations will determine whether you are an employee protected under the scope of an Act.
Where an employee begins employment with an employer and for a period of more than one month, such employee must be given a written contract of employment with particulars of the terms and conditions of employment including the notice period required to terminate the contract of employment.
WHAT ARE THE LAWS GOVERNING EMPLOYMENT IN MALAYSIA?
The principal legislation governing the labour market and employment relationship in Malaysia is the Employment Act 1955. However, the application of these rules to Sarawak and Sabah references made under the Act shall be substituted by references to the Sarawak Labour Ordinance (Cap. 76) and Sabah Labour Ordinance (Cap. 67) or other written laws in force in Sarawak or Sabah, as the case may be.
Some other legal regulations include:

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