This document summarizes key Malaysian employment laws, including the Employment Act 1955, which outlines rights for employees such as maternity leave, annual leave, sick leave, and termination notice periods. It also discusses the distinction between employees and independent contractors based on control tests, and duties of both employers and employees. Employers have a duty of care to provide a safe working environment and system of work, while employees must follow safety measures and not willfully ignore them. The document outlines procedures for lawful termination of employees.

1. Employment Law
1) Employment Act 1955 rights of employee during employment.
2)Employees Provident Fund Act 1991 (E.P.F) saving during employment.
3) Workmen’s Compensation Act 1952 protection in the form
4)Employees’ Social Security Act 1969 (SOCSO) of insurance if injured/death
5)Industrial Relations Act 1967 employers, employee, trade union & trade
dispute.
6)Factories & Machinery Act 1967 provisions safety,
7)Occupational Safety and Health Act 1994 (OSHA) welfare & health
Employment Act : Employer any person enters ctt of service to employ any
other person as an employee.
Employee enters ctt of service with employer & wages
not exceed RM2,000 a month.
Exception though wages exceed still consider employee;
1) Manual labour
2) Engaged in operation/maintenance of any mechanically propelled
vehicle operated to transport passenger/goods.
3) Supervise manual labour (supervisor)
4) Engage in vessel h/e no certificate UK or local/agmt under M/S/O 1952
5) Domestic servant.

2. CONTRACT OF SERVICE & CONTRACT FOR SERVICE
Ctt of service more 1 month – must be in writing
Ctt of Service(E/A) : any agrmt oral/writing/express/implied, whereby 1 person
agrees to employ another as an employee & that other agrees to serve his
employer as an employee & includes an apprenticeship
Employee : subject to contract of service.
Independent cttr : contract for service – obligation to do certain job.
How? 1) Control Test: relies on the ability of the employer to exercise control
over the employee in relation to the work done h/e not conclusive since
how to control professionals
2) Organizational/integration test: work done as an integral (whether
part & parcel) of the business. Whereas ctt for service only accessory to it.
- degree of integration into the organization.
- test would work if the extend which is integrated is not ambiguous.
3) Mixed/multiple test: Four indicator;
i) power of selection
ii) payment of wages/remuneration
iii) right of suspension/dismissal
iv) right of control (legal authority to exercise control)

3. 4) Intention can it be taken into account? Depends on whole
factual circumstances. Ambiguous base on intention.
Apprenticeship- employee within E/A 1955.
CONSEQUENCES after determining employee or not;
1) Employer’s obligation under the law will arise to an employee
despite any arrangements made to avoid such duties.
2) Employer will be vicariously liable under law of torts for
tortious act committed by an employee in the course of their
employment.
3) Employer owes a duty at common law to his employees to
take reasonable care for their safety.
4) In case a judgement made against employee, an attachment
of earnings can be ordered, court can compel employer to
deduct employee salary for certain purpose
5) Employee entitled to protections under statutes.

4. Rights of Employee :
1) Female - industrial/agriculture 10.00pm – 5.00am cannot.
*However Director General may exempt in writing.
- 11 consecutive hours free from work (S34).
- work underground cannot (S35).
- maternity leave 60 days (S37), 5 children.
2) Rest day in each week 1 whole day (S59)
3) (S60E) Paid annual leave - 8 days – 12 months continuous service
if employed less 2 years.
- 12 days – employed 2 years or more.
- 16 days – employed 5 years or more.
- Not completed 12 months, in proportion to the number of
completed
months of service.
- less ½ a day disregarded. ½ or more deemed 1 day.
- absent w/x permission 10% during 12 months not entitle to leave

5. 4) On annual paid leave fall sick (mc)/maternity, leave deem not
taken.
5) leave must be taken not later 12 months, after end of every 12
months will be forfeited. H/e payment in lieu of annual leave
allowed if employer request & employee agree in writing.
6) Termination – entitle to take leave before terminated + leave
accrued of the completed months.
7) Unpaid leave more 30 days disregarded in computing length of
service.
8) Sick leave (S60F): (aa) no hospitalisation
i) 14 days – less 2 years service.
ii) 18 days – 2 years 5 years service.
iii) 21 days – 5 years or more.
(bb) hospitalisation – 60 days.
* To be entitle must inform employer and the mc is from certified
medical practitioner. If not deem absent.
DUTIES OF EMPLOYEES: Under OSHA S24 + Duties of Agent

6. DUTIES OF EMPLOYER (+ duties of principal)
* Under OSHA : S15 & S16
* Duty of care (take reasonable care to avoid exposing
employee to unnecessary risk of injury)
i) Vicarious liability of an employer for not providing safe
system (e.g safety equipment) of work. Though services
lent to other.
ii) An employee not insured under SOCSO, can claim damages
under common law.
iii) Duty of care is personal to the employer (whether appoint
independent contractor or not), it cannot be delegated
under any circumstances.
iv) Employee willfully ignoring safety measures and
employer’s liability. Employer not liable.
v) Duty to provide safe system includes duty to take
reasonable care toward employee. Johnstone v
Bloomsbury Health Authority basic 40 hours, addition call
up 48 hours. Total 88 hours.

7. TERMINATION,Dismissal & REMEDIES
-can ‘hire’ but cannot ‘fire’
-Employee commits breach of ctt employee terminated the ctt not
dismissed by employer not entitled to safeguards against dismissal.
A) Reinstatement when can be claimed.
- Dismiss w/x just cause & excuse – S20(1) IRA 1967 representation in
writing within 60 days from the date of dismissal to the Director General.
- If notice received during period of notice, not later 60 days from expiry.
B) Dismissal & Principles of Natural Justice in Domestic Enquiry (rule
against bias and the right to a fair hearing)
Audi alteram partem – person who has been charged, must be heard
before any decision is taken.
Nemo judex incausa sua – no one shall be a judge if he has an interest in
that particular case.
-No domestic inquiry – is it dismissal without just cause/excuse ?
-If dispute were brought to Industrial Court, failure to make an enquiry before
dismissal is not fatal to the employer and would be entitled to justify it since
employee were given this right at this stage.

8. 1) Reduction of salary without just cause/excuse amounts to squeezing an
employee out of employment.
Amanah Butler (M) Sdn Bhd v Yike Chee Wah
Buys & sells currency. Resp a manager. Receive fixed salary + percentage of profits.
Notification by Bank Negara – no sharing profits but to negotiate new
remuneration scheme. Held – compensation & no reinstatement because
mutual trust lacking.
2) Termination not warranted if misconduct not connected with business.
3) Industrial court cannot award any benefit where dismissal is for just
cause/excuse.
4) whether a temporary employee whose services are terminated illegally could
claim reinstatement? Termination null & void & employee reinstate.
5) Are doctor’s or professional a ‘workman’? Can he claim benefits of IRA 1967?
Can. Definition ‘workman’ wider, includes any person who has been dismissed.
C) Notice of termination – Mandatory requirement
Sec12 Employment Act, mandatory give notice to other party. Length same. Period of
notice as in term of contract. Contract silent;
i) employed less 2 years : 4 weeks notice.
ii) 2 years/more but less 5 years: 6 weeks notice.
iii) More 5 years: 8 weeks notice.
*may waive notice & accept wages in lieu of notice.

9. Though contract of service say no notice, employee still
entitle to a notice under following cases (Sec 12(3);
1- employer ceased/intends to cease business for purpose employee
was employed.
2- ceased/intends to cease in the place which employee contracted
to work
3- requirements of that business for the employee to carry out work
of a particular kind have ceased/ diminished/expected to
cease/diminish.
4- work of a particular kind in the place at which he was contracted
to work have ceased/diminished/ expected to cease/diminish.
5- employee refused to accept his transfer to other place, unless ctt
of service requires to accept.
6-change of ownership of business.
*willful breach of a condition may terminate without notice.
*employee misconduct after due inquiry - i) dismissed without notice
ii) down graded.
iii) imposed lesser punishment

10. During period of inquiry - may suspend not exceeding 2weeks
- shall pay wages ½ during suspension.
*Employee entitle terminates without notice to employer if
he or his dependents immediately threatened by danger or
disease.
1)Notice & Doctrine of Election
- Accept other benefits in lieu of notice/salary
prevented from claiming salary in lieu of notice/
challenging the termination for want of notice.
2) Would refusal to transfer order warrant dismissal?
- Depends whether mala fide or not.
3) No notice required when summary dismissal justified.
4) Misconduct deemed to be condoned when election is
made to retain a guilty employee.