The Law on Union Recognition Claim Prior to the IR (Amendment) Act 2020 Prior to the IRA (Amendment) Act 2020, the process of recognition claims is governed by Sections 9, 10, 10A, 11 and 12 of the IRA 1967. Once a union has been recognized by the Company in respect of workmen or a class of workmen (in a managerial or Executive or confidential or security or “non-executive/bargainable” capacity), then no other trade union of workmen shall make a claim for recognition or be ac

No Provision in the Employment Act (EA) 1955 on Probation A review of the Malaysian Employment Act (1955) including the recent EA (Amendment) Act 2022 confirms that there is nothing contained in the Act with regards to the duration of the probation period (for a newly hired employee) and the rights of probationers specifically. In short, the rights of probationers are found in the employment contract signed between the employee and the company offering him/her employment, as

Annual leave is a statutory entitlement under Malaysian labour law. Under Section 60E of the Employment Act 1955, every employee covered by the Act is entitled to a minimum number of paid annual leave days, depending on years of service. Annual leave is earned and belongs to the employee. However, the law also makes it clear that the timing of leave must be mutually agreed between employer and employee. Except where the contract of service specifically provides otherwise, the

Managing performance and discipline is an essential part of every leader in any organization. Good discipline ensures smooth and uninterrupted operations, and renders peace of mind at work for colleagues as well as superiors. This leadership task must not be neglected. Any leader who neglects to perform this should be charged with dereliction of duty, and if he is seriously unable to or does not have the guts to do so, he should be demoted or transferred to another position w

This article attempts to clarify the difference between major and gross misconduct. Misconduct refers to action or failing to act that is considered to be incompatible with the expressed or implied conditions of service. Misconduct can be minor, major or gross in nature. Major misconduct is behaviour that fundamentally undermines the confidence and trust crucial in the employment relationship. It may or may not be premeditated but, in a big way it significantly reduces the em

HR Managers must have a very clear understanding of the rights of the employer. The HR Manager’s first obligation is to look after interest of the employer and not that of the employee. To maintain workplace discipline and organizational efficiency in the interest of the business, this must first be understood –the employees must first obey instructions given by their employer, including those which the employee may think is unfair, unreasonable or even unlawful unless the em

Demotion together with salary reduction is a form of punishment which an employer may impose on employee who is found guilty of serious misconduct. Section 14(1) of the Employment Act 1955 states that an employer may downgrade an employee. The law does not go on to say anything about the salary. Due to that, many HR managers are unsure of it and therefore not quite comfortable with executing the punishment. Some HR managers are worried that to demote and reduce salary at the

When a contract of service is coming to an end, the question of leave application,  outstanding annual leave or putting the employee on leave may arise. 1. Notice Period or Indemnity in Lieu of Notice With resignation, the employee is required to serve a notice period as contained in their employment contract.  If an employee fails to serve the notice period, the employer is entitled to demand the indemnity (compensation) in lieu of the notice. This indemnity is typically equ