EMPLOYMENT ACT, 1955
The Employment Act, 1955 is the main legislation on labour matters in Malaysia.
Employment law in Malaysia is generally governed by the Employment Act 1955 (“Employment Act”). The Employment Act sets out certain minimum benefits that are afforded to applicable employees. For applicable employees – any clause in an employment contract that purports to offer less favourable benefits than those set out in the Employment Act, shall be void and replaced with the minimum benefits in the Employment Act.
INDUSTRIAL RELATIONS ACT 1967
The main source for Industrial Relations Law in Malaysia is founded in the Industrial Relations Act 1967, which came into the operation with effect from the 7th August 1967. The Act provides ways for settlement of trade disputes between employers and employees.
The Industrial Relations (Amendment) Act 2019 (“Amendment Bill”) was tabled in Parliament on 7 October 2019 and passed by the Dewan Rakyat on 9 October 2019. The Amendment Act Bill is now set to be tabled in the Dewan Negara. There will be key changes to the Industrial Relations Act 1967.
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