Malaysia (Commonwealth Union) _ Malaysia has taken action against 400 enterprises for breaking labor regulations so far this year, according to state news agency Bernama, citing Human Resources Minister V Sivakumar.
According to Bernama, the ministry’s labor department punished 272 companies a total of 2.17 million ringgit ($463,000), while the courts fined 128 firms a total of 242,000 ringgit ($51,700).
According to Sivakumar, the labor infractions included improper wage deductions. The minister did not name the companies or provide specifics about the labor violations. Malaysia is an important component of the global supply chain, producing everything from palm oil to medical gloves and semiconductor chips.
Malaysian firms have faced US sanctions in recent years due to allegations of abuses against migrant workers, who are heavily engaged in the country’s manufacturing and plantation industries. The charges of forced labor include financial bondage, excessive working hours, passport retention, and unsanitary dormitories. Malaysia has established a goal of eradicating forced labor practices by 2030.
Malaysian law is mostly based on the common law legal system. This was a direct effect of Britain’s colonization of Malaya, Sarawak, and North Borneo from the early nineteenth century through the 1960s. The ultimate law of the land, Malaysia’s Constitution, establishes the legal framework and rights of Malaysian citizens.
Federal legislation issued by Malaysia’s Parliament apply throughout the country. State laws are also enacted by the State Legislative Assemblies and apply to the specific state. Malaysia’s constitution also provides for a unique dual justice system, with secular (criminal and civil) laws coexisting with sharia regulations.
Malaysian laws are classified into two types: written law and unwritten law. Written laws are those that have been enacted by the constitution or legislation. Unwritten laws are those that are not found in statutes but can be found in court rulings. This is referred to as common law or case law. Malaysian case law may apply in cases where there is no statute governing the situation. If no Malaysian case law exists, English case law can be used. Circumstances from Australia, India, and Singapore have been referenced as compelling authorities in some circumstances.
The Malaysian parliament passed the work (Amendment) Act 2022, which makes various modifications to the country’s existing work legislation. The provisions of the Act went into effect on January 1, 2023. This article examines the amendment’s significant modifications as well as the ramifications for HR and managers.
The Employment Act (EA) of 1955 is a federal statute in Malaysia that establishes the legal foundation for the country’s employment terms and conditions. Except for domestic workers, mariners, and government employees, the Act applies to all employees. It specifies both employees’ and employers’ rights and obligations and includes rules for topics such as salaries, working hours, yearly leave, and termination of employment. It also outlines the procedure for resolving employee-employer conflicts through the Industrial Court.
However, the EA 1955 needed to be modified to reflect changes in the cost of living, currency value, and other issues. The Employment (Amendment) Bill 2021 was passed to provide better protection to Malaysian workers. Originally scheduled to take effect on September 1, 2022, the modified Act took effect on January 1, 2023, following a statement by Datuk Seri Saravanan Murugan, Malaysia’s Minister of Human Resources. He also stated that the First Schedule, which specifies the employees who will be covered by EA 1955, will be significantly revised. The provisions of the Employment (Amendment) Act 2022 will apply to anyone who has signed an employment or service contract after that date. Certain features, such as pay for work done on rest days and public holidays, overtime payments and termination, layoff benefits, and so on, would, however, only apply to a restricted class of workers earning RM4,000 or less.
