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WHAT ARE THE MINIMUM CONDITIONS SET OUT FOR EMPLOYMENT ?

A written contract of employment must be given to every employee where the employment period exceed 1 month. The contract must includes particulars of the terms and conditions of employment and notice period required to terminate it.

Wages earned must be paid not later than the 7th day after the last day of any wage period. An employee has the right to be given by an employer, at or before the time at which any payment of wages or salary is made to such employee, a written itemized pay statement.

Unless prior written approval of the Director General of the Department of Labour is obtained, female employees are not permitted to work in any industrial or agricultural undertakings between the hours of 10 o'clock in the evening and 5 o'clock in the morning.

Female employees are entitled to 60 days paid maternity leave for up to five surviving children. Subject to a minimum of RM6 per day, a female employee shall be paid her normal rate of pay.

The normal work hours of an employee shall not exceed 8 hours in one day or 48 hours in one week.

All employees are permitted to paid holiday on at least 10 gazetted public holidays in any one calendar year.

An employee with less than 2 years of service is eligible for 8 days of paid annual leave, 12 days of paid annual leave for an employee with 2 years or more but less than 5 years of service, and 16 days of paid annual leave for an employee with over 5 years of service.

An employee with less than 2 years of service is eligible for 14 days of paid sick leave, 18 days of paid sick leave for an employee with 2 years or more but less than 5 years of service and 22 days paid sick leave for an employee with over 5 years of service per calendar year and where hospitalization is necessary, up to a maximum of 60 days paid sick leave per calendar year.

The minimum payment for overtime work is 1 1/2 times the hourly rate of pay on normal working days, 2 times the hourly rate on rest days and 3 times the hourly rate on public holidays.

IS THE CONTRACT OF SERVICE A MUST IN WRITING ?

A contract of service can be either oral or writing.

Where an employee begins employment with an employer for a period exceeding 1 month, the employer shall give to the employee a written statement of particulars of employment.

You can provide better terms and conditions to your employee in a contract of service but not less favorable then the minimum requirements provided in the Employment Act 1955.

A contract of service shall contain particulars of :

  • the names of employer and employee
  • the date when the employment began
  • the place of work or an indication of that and of the address of the employer
  • the title of the job which the employee is employed to do or a brief description of the work for which a person is employed
  • the commencement salary and where applicable other allowances and bonus
  • any terms and conditions relating to :
    • probation period
    • hours of work
    • entitlement to holidays, including public holidays
    • overtime pay and leave in lieu
    • incapacity for work due to sickness or injury, including any provision for sick pay and medical bills
    • EPF and SOCSO schemes
  • the length of notice which the employee is obliged to give and entitled to receive to terminate the contract of service or a clause on the manner in which the contract of service may be terminated.

In any circumstances, a wage period shall not exceed 1 month. Where the wage period is not specified in the contract of service, the wage period shall be deemed to be 1 month.

Where the period of notice of termination is not specified in the contract of service , the notice shall be as follows :

  • 4 weeks notice - has been employed for less than 2 years
  • 6 weeks notice - has been employed for 2 years or more but less than 5 years
  • 8 weeks notice - has been employed for 5 years or more

A written contract of service with particulars of the terms and conditions must be given to all employees on or before the commencement of an employment.



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