Introduction
Whether you are a fresh graduate entering the workforce or an experienced professional, understanding your employment rights is essential. Malaysia’s labour laws are designed to protect workers and provide a framework for fair treatment at the workplace. Unfortunately, many employees are not aware of these rights, leaving them vulnerable to exploitation. This article highlights the most important aspects of employment law in Malaysia that every worker should know.
The Employment Act 1955
The primary legislation governing employment in Malaysia is the Employment Act 1955. While it applies mainly to employees earning below a certain threshold (RM2,000/month and certain categories of workers regardless of salary), its principles shape employment practices nationwide.
Key protections include:
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Working Hours and Rest Days – Employees cannot be required to work more than 8 hours a day or 48 hours a week, and must receive at least one rest day per week.
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Overtime Pay – Employees are entitled to higher pay rates when working beyond normal hours, on rest days, or on public holidays.
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Public Holidays and Leave – At least 11 paid public holidays per year, plus annual leave, sick leave, and maternity leave entitlements.
Maternity and Family-Related Benefits
One of the most important protections for working mothers is the right to 98 days of paid maternity leave. Employers are prohibited from terminating employees who are on maternity leave, except under very specific circumstances such as company closure.
Fathers, meanwhile, are entitled to 7 consecutive days of paternity leave (effective 2023), giving families more balanced support.
Protection Against Unfair Dismissal
The Industrial Relations Act 1967 protects employees against unfair dismissal. Employers must have a just cause for termination and follow due process. If an employee is dismissed unfairly, they can file a complaint with the Industrial Court for reinstatement or compensation.
Employee Provident Fund (EPF) and Social Security (SOCSO)
In addition to wages, employers and employees both contribute to the EPF, ensuring retirement savings. Employers are also required to register employees with SOCSO, which provides protection in cases of workplace injury, illness, or disability.
Awareness is Power
Too often, workers accept poor treatment simply because they do not know the law. By learning their rights, employees can protect themselves and ensure fair treatment in the workplace. Similarly, employers benefit from legal compliance, avoiding costly disputes and fostering a more productive workforce.
Conclusion
Employment law in Malaysia is not just about rules on paper — it directly impacts the quality of life for millions of workers and their families. Understanding these rights is the first step toward building a fair and balanced workplace culture.
At MalaysianLaw.my, we are committed to making legal knowledge more accessible for everyone.