Ce diaporama a bien été signalé.
Nous utilisons votre profil LinkedIn et vos données d’activité pour vous proposer des publicités personnalisées et pertinentes. Vous pouvez changer vos préférences de publicités à tout moment.

Understanding Malaysian Employment Act 1955

7 582 vues

Publié le

Understanding The Regulations and Amendments to the Malaysian Employment Act 1955 in a Simple and Practical Way

Publié dans : Droit
  • Identifiez-vous pour voir les commentaires

Understanding Malaysian Employment Act 1955

  1. 1. UNDERSTANDING THE EMPLOYMENT ACT 1955 REGULATIONS AND AMENDMENTS IN A SIMPLE AND PRACTICAL WAY
  2. 2. course modules 1. WHAT IS THE EMPLOYMENT ACT 1955 2. CONTRACTS OF SERVICE VS CONTRACTS FOR SERVICE 3. WORKING DAYS AND HOURS 4. EMPLOYMENT BENEFITS AND PAYMENT 5. HOSPITALISATION AND NON HOSPITALISATION BENEFITS
  3. 3. COURSE MODULES 6. PAID AND UNPAID MATERNITY LEAVE 7. WAGE AND SALARY 8. DISCIPLINARY PROCEDURE AND ACTION 9. SEXUAL HARASSMENT 10. RETRENCHMENT BENEFITS
  4. 4. WHAT IS THE EMPLOYMENT ACT 1955 MODULE 1
  5. 5. coverage • EA 1955 APPLIES ONLY TO PENINSULAR MALAYSIA (INCLUDES FEDERAL TERRITORY) • SABAH - SABAH LABOUR ORDINANCE • SARAWAK - SARAWAK LABOUR ORDINANCE • THE LATEST REVISION TO EA 1955 WAS DONE IN 2012 • EA 1955 IS ALSO KNOWN AS ACT 265
  6. 6. THE PURPOSE OF EA 1955 THE ACT ENSHRINES THE RIGHTS OF BOTH THE EMPLOYEES AND EMPLOYERS, AND THE OBLIGATIONS OR RESPONSIBILITIES THEY ARE OBLIGED TO FULFIL TO HAVE THE LEGAL PROTECTION. THE SCOPE OF EMPLOYMENT ACT 1955 ONLY COVERS WORKERS WHO ARE DEFINED AS “EMPLOYEES” UNDER THE ACT
  7. 7. EMPLOYEES COVERED UNDER EA 1955 • EMPLOYEES WHOSE MONTHLY SALARY DOES NOT EXCEED RM2,000 • EMPLOYEES WHO ARE ENGAGED IN MANUAL LABOUR, REGARDLESS OF SALARY • EMPLOYEES ENGAGED IN THE OPERATION OR MAINTENANCE OF MECHANICALLY PROPELLED VEHICLE
  8. 8. EMPLOYEES COVERED UNDER EA 1955 • EMPLOYEES WHO SUPERVISE OR OVERSEES OTHER EMPLOYEES ENGAGED IN MANUAL LABOUR • EMPLOYEES ENGAGED IN ANY CAPACITY ON A VESSEL (SUBJECT TO CERTAIN OTHER CONDITIONS) • DOMESTIC SERVANTS
  9. 9. EMPLOYEES COVERED UNDER EA 1955 CERTAIN PARTS OF THE EMPLOYMENT ACT ARE NOT APPLICABLE TO CERTAIN CATEGORIES OF EMPLOYEES. FOR EXAMPLE, MULTIPLE PARTS OF THE EMPLOYMENT ACT DO NOT APPLY TO DOMESTIC SERVANTS SUCH AS TERMINATION BENEFITS, HOURS OF WORK AND MATERNITY PROTECTION.
  10. 10. EMPLOYEES COVERED UNDER EA 1955 ANY PERSON WHO, IRRESPECTIVE OF THE AMOUNT OF WAGES HE EARNS IN A MONTH, HAS ENTERED INTO A CONTRACT OF SERVICE WITH AN EMPLOYER ENGAGED IN MANUAL LABOUR
  11. 11. EMPLOYEES NOT COVERED UNDER EA 1955 “NON-EA EMPLOYEES” WILL BE GOVERNED BY THE TERMS OF THEIR CONTRACT OF EMPLOYMENT, SUBJECT TO ANY OTHER APPLICABLE STATUTORY REQUIREMENTS
  12. 12. EMPLOYEES NOT COVERED UNDER EA 1955 EMPLOYERS ARE MOSTLY FREE TO SET ANY BENEFITS FOR NON-EA EMPLOYEES, ON THE ASSUMPTION THAT THOSE EMPLOYEES AGREE TO THOSE BENEFITS BY ACCEPTING AND SIGNING THE EMPLOYMENT AGREEMENT.
  13. 13. EMPLOYEES NOT COVERED UNDER EA 1955 MOST EMPLOYERS STILL USE THE EMPLOYMENT ACT BENEFITS AS A GUIDELINE OR “BARE MINIMUM”, EVEN FOR NON-EA EMPLOYEES.
  14. 14. EA1955 VS COMPANY POLICIES THE LAW SPECIFICALLY STATES THAT ANY TERM OF EMPLOYMENT WHICH IS LESS FAVOURABLE TO THE EMPLOYEE THAT THOSE PROVIDED BY THE LAW "SHALL BE VOID AND OF NO EFFECT" AND THE PROVISIONS OF THE ACT OR THE PROVISIONS MADE UNDER SUBSIDIARY LEGISLATION "SHALL BE SUBSTITUTED THEREFOR".
  15. 15. EA1955 VS COMPANY POLICIES OF THE LAW ALSO SPECIFICALLY PROVIDE THAT IT DOES NOT PREVENT THE EMPLOYER AND THE EMPLOYEE FROM AGREEING TO TERMS WHICH ARE MORE FAVOURABLE TO THE EMPLOYEE THAN WHAT IT HAS BEEN PROVIDED FOR.
  16. 16. PENALTIES FOR NON COMPLIANCE OF EA 1955 ANY PERSON WHO COMMITS ANY OFFENCE UNDER, OR CONTRAVENES ANY PROVISION OF, THIS ACT, OR ANY REGULATIONS, ORDER, OR OTHER SUBSIDIARY LEGISLATION WHATSOEVER MADE THEREUNDER, IN RESPECT OF WHICH NO PENALTY IS PROVIDED, SHALL BE LIABLE, ON CONVICTION, TO A FINE NOT EXCEEDING TEN THOUSAND RINGGIT.
  17. 17. CONTRACTS OF SERVICE VS CONTRACTS FOR SERVICE MODULE 2
  18. 18. contract OF service CONTRACT OF SERVICE‖ MEANS ANY AGREEMENT, WHETHER ORAL OR IN WRITING AND WHETHER EXPRESS OR IMPLIED, WHEREBY ONE PERSON AGREES TO EMPLOY ANOTHER AS AN EMPLOYEE AND THAT OTHER AGREES TO SERVE HIS EMPLOYER AS AN EMPLOYEE AND INCLUDES AN APPRENTICESHIP CONTRACT
  19. 19. contract OF service A CONTRACT OF SERVICE IS AN AGREEMENT IN WHICH: • ONE PERSON AGREES TO EMPLOY ANOTHER AS AN EMPLOYEE • THE OTHER PERSON AGREES TO SERVE THE EMPLOYER AS AN EMPLOYEE
  20. 20. contract OF service THE AGREEMENT CAN BE IN WRITING, VERBAL, EXPRESSED OR IMPLIED. IT CAN BE IN THE FORM OF A LETTER OF APPOINTMENT OR EMPLOYMENT, OR AN APPRENTICESHIP AGREEMENT. HOWEVER, TO MINIMISE DISPUTES ON THE AGREED TERMS AND CONDITIONS, THE CONTRACT SHOULD BE IN WRITING
  21. 21. KEY EMPLOYMENT TERMS (KET) FROM 1 APRIL 2016, ALL EMPLOYERS MUST ISSUE KEY EMPLOYMENT TERMS (KETS) IN WRITING TO EMPLOYEES COVERED BY THE EMPLOYMENT ACT.
  22. 22. KEY EMPLOYMENT TERMS (KET) 1. FULL NAME OF EMPLOYER 2. FULL NAME OF EMPLOYEE 3. JOB TITLE, MAIN DUTIES AND RESPONSIBILITIES
  23. 23. KEY EMPLOYMENT TERMS (KET) 4. START DATE OF EMPLOYMENT 5. DURATION OF EMPLOYMENT (IF EMPLOYEE ON A FIXED TERM CONTRACT)
  24. 24. KEY EMPLOYMENT TERMS (KET) 6.WORKING ARRANGEMENTS, SUCH AS: • DAILY WORKING HOURS (E.G. 8.30AM – 6PM). • NUMBER OF WORKING DAYS PER WEEK (E.G. SIX). • REST DAY (E.G. SATURDAY).
  25. 25. KEY EMPLOYMENT TERMS (KET) 7. SALARY PERIOD 8. BASIC SALARY 9. FIXED ALLOWANCE
  26. 26. KEY EMPLOYMENT TERMS (KET) 10. FIXED DEDUCTIONS 11. OVERTIME PAYMENT PERIOD ( IF DIFFERENT FROM ITEM 7 SALARY PERIOD) 12. OVERTIME RATE OF PAY
  27. 27. KEY EMPLOYMENT TERMS (KET) 13.OTHER SALARY-RELATED COMPONENTS, SUCH AS: • BONUSES • INCENTIVES
  28. 28. KEY EMPLOYMENT TERMS (KET) 14.TYPE OF LEAVE SUCH AS: • ANNUAL LEAVE • OUTPATIENT SICK LEAVE
  29. 29. KEY EMPLOYMENT TERMS (KET) 14.TYPE OF LEAVE SUCH AS: • HOSPITALISATION LEAVE • MATERNITY LEAVE • CHILD CARE LEAVE
  30. 30. KEY EMPLOYMENT TERMS (KET) 15.OTHER MEDICAL BENEFITS, SUCH AS: • INSURANCE • MEDICAL BENEFITS • DENTAL BENEFITS
  31. 31. KEY EMPLOYMENT TERMS (KET) 16. PROBATION PERIOD 17. NOTICE PERIOD 18. RETIREMENT AGE
  32. 32. KEY EMPLOYMENT TERMS (KET) 19. TRANSFER 20. PLACE OF WORK (OPTIONAL) IF THE WORK LOCATION IS DIFFERENT FROM THE EMPLOYER'S ADDRESS. ALTHOUGH OPTIONAL, YOU ARE STRONGLY ENCOURAGED TO INCLUDE THIS INFO.
  33. 33. LEGAL POSITION OF PROBATIONERS THE EMPLOYMENT ACT DOESN’T DISTINGUISH BETWEEN PROBATIONERS AND CONFIRMED EMPLOYEES. HOWEVER, CASE LAW DOES PROVIDE THAT THERE IS NO “AUTOMATIC CONFIRMATION” AS A PROBATIONER WHO DOES NOT RECEIVE A CONFIRMATION LETTER IS STILL A PROBATIONER, EVEN THOUGH THE PROBATIONARY PERIOD HAS LAPSED AND THE EMPLOYER CONTINUED TO RETAIN THE EMPLOYEE
  34. 34. KEY EMPLOYMENT TERMS (KET) KETS MUST INCLUDE THE ITEMS BELOW, UNLESS THE ITEM IS NOT APPLICABLE. FOR EXAMPLE, IF THE EMPLOYEE IS A PROFESSIONAL, MANAGER OR EXECUTIVE AND OVERTIME PAY DOES NOT APPLY, THE KETS ISSUED DO NOT NEED TO INCLUDE ITEMS 11 TO 12.
  35. 35. CONTRACT FOR SERVICE A CONTRACT OF SERVICE IS AN AGREEMENT BETWEEN AN EMPLOYER AND AN EMPLOYEE. IN A CONTRACT FOR SERVICE, AN INDEPENDENT CONTRACTOR, SUCH AS A SELF-EMPLOYED PERSON OR VENDOR, IS ENGAGED FOR A FEE TO CARRY OUT AN ASSIGNMENT OR PROJECT.
  36. 36. CONTRACT OF SERVICE VS CONTRACT FOR SERVICE CONTRACT OF SERVICE CONTRACT FOR SERVICE HAS AN EMPLOYER-EMPLOYEE RELATIONSHIP HAS A CLIENT - CONTRACTOR RELATIONSHIP EMPLOYEE DOES BUSINESS FOR EMPLOYER CONTRACTOR CARRIES OUT BUSINESS ON THEIR OWN ACCOUNT MAY BE COVERED UNDER EA 1955 NOT COVERED BY EA 1955 INCLUDES TERMS OF EMPLOYMENT (KET) STATUTORY BENEFITS DO NOT APPLY
  37. 37. factors to be considered in identifying a contract FOR SERVICE CONTROL • WHO DECIDES ON THE RECRUITMENT AND DISMISSAL OF EMPLOYEES? • WHO PAYS FOR EMPLOYEES' WAGES AND IN WHAT WAYS? • WHO DETERMINES THE PRODUCTION PROCESS, TIMING AND METHOD OF PRODUCTION? • WHO IS RESPONSIBLE FOR THE PROVISION OF WORK?
  38. 38. factors to be considered in identifying a contract FOR SERVICE OWNERSHIP OF FACTORS OF PRODUCTION • WHO PROVIDES THE TOOLS AND EQUIPMENT? • WHO PROVIDES THE WORKING PLACE AND MATERIALS?
  39. 39. factors to be considered in identifying a contract FOR SERVICE ECONOMIC CONSIDERATIONS • IS THE BUSINESS CARRIED OUT ON THE PERSON'S OWN ACCOUNT OR IS IT FOR THE EMPLOYER? • CAN THE PERSON SHARE IN PROFIT OR BE LIABLE TO ANY RISK OF LOSS? • HOW ARE EARNINGS CALCULATED AND PROFITS DERIVED?
  40. 40. WORKING DAYS AND HOURS MODULE 3
  41. 41. hours of work AN EMPLOYEE SHALL NOT BE REQUIRED UNDER HIS CONTRACT OF SERVICE TO WORK -- • MORE THAN FIVE CONSECUTIVE HOURS WITHOUT A PERIOD OF LEISURE OF NOT LESS THAN THIRTY MINUTES DURATION; • MORE THAN EIGHT HOURS IN ONE DAY;
  42. 42. hours of work AN EMPLOYEE SHALL NOT BE REQUIRED UNDER HIS CONTRACT OF SERVICE TO WORK -- • IN EXCESS OF A SPREAD OVER PERIOD OF TEN HOURS IN ONE DAY; • MORE THAN FORTY-EIGHT HOURS IN ONE WEEK:
  43. 43. HOURS OF WORK AN EMPLOYEE WHO IS ENGAGED IN WORK WHICH MUST BE CARRIED ON CONTINUOUSLY AND WHICH REQUIRES HIS CONTINUAL ATTENDANCE MAY BE REQUIRED TO WORK FOR EIGHT CONSECUTIVE HOURS INCLUSIVE OF A PERIOD OR PERIODS OF NOT LESS THAN FORTY-FIVE MINUTES IN THE AGGREGATE DURING WHICH HE SHALL HAVE THE OPPORTUNITY TO HAVE A MEAL
  44. 44. HOURS OF WORK WHERE, BY AGREEMENT UNDER THE CONTRACT OF SERVICE BETWEEN THE EMPLOYEE AND THE EMPLOYER, THE NUMBER OF HOURS OF WORK ON ONE OR MORE DAYS OF THE WEEK IS LESS THAN EIGHT, THE LIMIT OF EIGHT HOURS MAY BE EXCEEDED ON THE REMAINING DAYS OF THE WEEK, BUT SO THAT NO EMPLOYEE SHALL BE REQUIRED TO WORK FOR MORE THAN NINE HOURS IN ONE DAY OR FORTY-EIGHT HOURS IN ONE WEEK.
  45. 45. subsection 60A (2) AN EMPLOYEE MAY BE REQUIRED BY HIS EMPLOYER TO EXCEED THE LIMIT OF HOURS PRESCRIBED IN SUBSECTION (1) AND TO WORK ON A REST DAY, IN THE CASE OF • ACCIDENT, ACTUAL OR THREATENED, IN OR WITH RESPECT TO HIS PLACE OF WORK • URGENT WORK TO BE DONE TO MACHINERY OR PLANT • AN INTERRUPTION OF WORK WHICH IT WAS IMPOSSIBLE TO FORESEE
  46. 46. SHIFT WORK AN EMPLOYEE WHO IS ENGAGED UNDER HIS CONTRACT OF SERVICE IN SHIFT WORK MAY BE REQUIRED BY HIS EMPLOYER TO WORK MORE THAN EIGHT HOURS IN ANY ONE DAY OR MORE THAN FORTY-EIGHT HOURS IN ANY ONE WEEK BUT THE AVERAGE NUMBER OF HOURS WORKED OVER ANY PERIOD OF THREE WEEKS, OR OVER ANY PERIOD EXCEEDING THREE WEEKS AS MAY BE APPROVED BY THE DIRECTOR GENERAL, SHALL NOT EXCEED FORTY-EIGHT PER WEEK.
  47. 47. SHIFT WORK NO EMPLOYER SHALL REQUIRE ANY EMPLOYEE WHO IS ENGAGED UNDER HIS CONTRACT OF SERVICE IN SHIFT WORK TO WORK FOR MORE THAN TWELVE HOURS IN ANY ONE DAY.
  48. 48. SPLIT SHIFT • A PERSON’S WORK DAY IS SPLIT INTO 2 OR MORE PARTS. FOR EXAMPLE A PERSON MAY WORK FROM 5.00 AM TILL 9.00 AM AND TAKE A BREAK UNTIL 2.00 PM AND RETURN TO WORK UNTIL 7.00 PM
  49. 49. DOUBLE DAY SHIFT • THE ORGANIZATION IS WORKING 16 HOURS PER DAY • SHIFT 1 - 7.00 AM TILL 3.00PM • SHIFT 2 - 3.00 PM TILL 11.00 PM
  50. 50. THREE SHIFT WORK • THE ORGANIZATION IS WORKING 24 HOURS PER DAY • SHIFT 1 ( MORNING) - 7.00 AM TILL 3.00 PM • SHIFT 2 (AFTERNOON) - 3.00 PM TILL 11.00 PM • SHIFT 3 ( NIGHT) - 11.00 PM TILL 7.00 AM
  51. 51. HOURS OF WORK FOR ANY OVERTIME WORK CARRIED OUT IN EXCESS OF THE NORMAL HOURS OF WORK, THE EMPLOYEE SHALL BE PAID AT A RATE NOT LESS THAN ONE AND HALF TIMES HIS HOURLY RATE OF PAY IRRESPECTIVE OF THE BASIS ON WHICH HIS RATE OF PAY IS FIXED.
  52. 52. OVERTIME WORK THE EA 1955 DEFINES THAT ‘OVERTIME WORK’ MEANS THE NUMBER OF HOURS OF WORK CARRIED OUT IN EXCESS OF THE NORMAL HOURS OF WORK PER DAY THE LIMIT OF OVERTIME WORK SHALL BE A TOTAL OF 104 HOURS IN ANY 1 MONTH. THIS MEANS AN AVERAGE OF ABOUT 4 HOURS IN 1 DAY THE PAY RATE SHALL BE 1½ TIMES THE HOURLY RATE OF PAY OF EMPLOYEES EMPLOYERS MUST BE MINDFUL THAT THEY MUST NOT REQUIRE ANY EMPLOYEE UNDER ANY CIRCUMSTANCES TO WORK MORE THAN 12 HOURS IN ANY ONE DAY
  53. 53. OVERTIME RATES APPLY TO EMPLOYEES COVERED UNDER THE EMPLOYMENT ACT (E.G. WAGES NOT EXCEEDING RM2,000, MANUAL LABOURERS), BUT CAN ALSO BE USED AS GUIDELINES FOR OTHER STAFF.
  54. 54. OVERTIME RATES WORKING IN EXCESS OF NORMAL WORKING HOURS ON A NORMAL WORK DAY 1.5X HOURLY RATE OF PAY
  55. 55. OVERTIME RATES REST DAY, BUT WORKING NORMAL WORKING HOURS WHERE WORK DOES NOT EXCEED HALF HIS NORMAL HOURS OF WORK: ½ THE ORDINARY RATE OF PAY FOR WORK DONE ON THAT DAY WHERE WORK IS MORE THAN HALF BUT DOES NOT EXCEED NORMAL HOURS OF WORK: 1 FULL DAY’S WAGES AT THE ORDINARY RATE OF PAY
  56. 56. OVERTIME RATES REST DAY, BUT WORKING IN EXCESS OF NORMAL WORKING HOURS 2X HOURLY RATE OF PAY
  57. 57. OVERTIME RATES PUBLIC HOLIDAY, BUT WORKING NORMAL WORKINGS HOURS 2 DAYS WAGES AT ORDINARY RATE OF PAY
  58. 58. OVERTIME RATES PUBLIC HOLIDAY – EXCESS OF NORMAL WORKING HOURS 3X HOURLY RATE OF PAY
  59. 59. “ORDINARY RATE OF PAY” IN THIS CONTEXT IS BASICALLY THE EMPLOYEE’S “DAILY” WAGE, AND IS CALCULATED BY DIVIDING THE EMPLOYEE’S MONTHLY SALARY BY 26. “HOURLY RATE OF PAY” MEANS THE ORDINARY RATE OF PAY DIVIDED BY THE NORMAL HOURS OF WORK. FOR EXAMPLE, AN EMPLOYEE WHO WORKS 8 HOURS A DAY FOR A MONTHLY SALARY OF RM1,300.00 WOULD HAVE AN ORDINARY RATE OF PAY OF RM50 (RM1,300 / 26 = RM50). THAT EMPLOYEE’S HOURLY RATE OF PAY WOULD BE RM6.25 (RM50 / 8 HOURS = RM6.25) IF THAT EMPLOYEE WAS ASKED TO WORK ON A PUBLIC HOLIDAY DURING HIS NORMAL WORKING HOURS, HIS OVERTIME PAYMENT FOR THAT DAY WOULD BE RM100 (RM50 X 2). NON-EA EMPLOYEES ARE NOT ENTITLED TO OVERTIME PAYMENTS
  60. 60. calculation for unpaid leave YOU MAY CHOOSE EITHER ONE OF THREE OPTIONS: • FIXED NUMBER OF DAYS: YOU MAY SELECT YOUR COMPANY’S WORKING DAYS FOR THE PARTICULAR PAYROLL MONTH. • WORKING DAYS IN CURRENT CALENDAR MONTH: INCLUDES ALL TICKED WORKING DAYS INCLUDING PUBLIC HOLIDAYS. • ALL DAYS IN CURRENT CALENDAR MONTH: INCLUDES ALL DAYS IN THE CURRENT CALENDAR MONTH.
  61. 61. calculation for unpaid leave EXAMPLE FOR WORKING DAYS IN CURRENT CALENDAR MONTH: JIM EARNS RM 4,000 A MONTH, AND TAKES 3 DAYS UNPAID LEAVE IN THE MONTH OF MARCH 2019. HOW MUCH SHOULD BE DEDUCTED? FOLLOWING THE STEPS LISTED ABOVE, WE FIND: • THERE ARE 21 WORKING DAYS IN THE MONTH OF MARCH • JIM EARNS RM 190.48 PER DAY (4000/21). • AS JIM HAS TAKEN 3 DAYS OFF, THE TOTAL DEDUCTION SHOULD BE RM 571.43 (4000*3/21).
  62. 62. EMPLOYEE BENEFITS AND PAYMENTS MODULE 4
  63. 63. EA 1955 - MINIMUM REQUIREMENTS FOR ANNUAL LEAVE LENGTH OF SERVICE ANNUAL LEAVE ENTITLEMENT LESS THAN 2 YEARS 8 DAYS MORE THAN 2 YEARS BUT LESS THAN 5 YEARS 12 DAYS MORE THAN 5 YEARS 16 DAYS
  64. 64. ANNUAL LEAVE - TERMS & CONDITIONS IF THE EMPLOYEE HAS NOT COMPLETED TWELVE MONTHS OF CONTINUOUS SERVICE WITH THE SAME EMPLOYER DURING THE YEAR IN WHICH HIS CONTRACT OF SERVICE TERMINATES, HIS ENTITLEMENT TO PAID ANNUAL LEAVE SHALL BE IN DIRECT PROPORTION TO THE NUMBER OF COMPLETED MONTHS OF SERVICE:
  65. 65. ANNUAL LEAVE - TERMS & CONDITIONS THE PAID ANNUAL LEAVE TO WHICH AN EMPLOYEE IS ENTITLED UNDER SUBSECTION (1) SHALL BE IN ADDITION TO REST DAYS AND PAID HOLIDAYS.
  66. 66. ANNUAL LEAVE - TERMS & CONDITIONS WHERE AN EMPLOYEE WHO IS ON PAID ANNUAL LEAVE BECOMES ENTITLED TO SICK LEAVE OR MATERNITY LEAVE WHILE ON SUCH ANNUAL LEAVE, THE EMPLOYEE SHALL BE GRANTED THE SICK LEAVE OR THE MATERNITY LEAVE, AS THE CASE MAY BE, AND THE ANNUAL LEAVE SHALL BE DEEMED TO HAVE NOT BEEN TAKEN IN RESPECT OF THE DAYS FOR WHICH SICK LEAVE OR MATERNITY LEAVE IS SO GRANTED.
  67. 67. ANNUAL LEAVE - TERMS & CONDITIONS THE EMPLOYER SHALL GRANT AND THE EMPLOYEE SHALL TAKE SUCH LEAVE NOT LATER THAN TWELVE MONTHS AFTER THE END OF EVERY TWELVE MONTHS CONTINUOUS SERVICE AND ANY EMPLOYEE WHO FAILS TO TAKE SUCH LEAVE AT THE END OF SUCH PERIOD SHALL THEREUPON CEASE TO BE ENTITLED THERETO;
  68. 68. ANNUAL LEAVE - TERMS & CONDITIONS PROVIDED THAT AN EMPLOYEE SHALL BE ENTITLED TO PAYMENT IN LIEU OF SUCH ANNUAL LEAVE IF, AT THE REQUEST OF HIS EMPLOYER, HE AGREES IN WRITING NOT TO AVAIL HIMSELF OF ANY OR ALL OF HIS ANNUAL LEAVE ENTITLEMENT.
  69. 69. ANNUAL LEAVE - TERMS & CONDITIONS IF THE CONTRACT OF SERVICE HAS BEEN TERMINATED BY EITHER PARTY BEFORE AN EMPLOYEE HAS TAKEN THE PAID ANNUAL LEAVE TO WHICH HE IS ENTITLED UNDER THIS SECTION, THE EMPLOYER SHALL PAY THE EMPLOYEE HIS ORDINARY RATE OF PAY IN RESPECT OF EVERY DAY OF SUCH LEAVE
  70. 70. REST DAY EVERY EMPLOYEE SHALL BE ALLOWED IN EACH WEEK A REST DAY OF ONE WHOLE DAY AS MAY BE DETERMINED FROM TIME TO TIME BY THE EMPLOYER, AND WHERE AN EMPLOYEE IS ALLOWED MORE THAN ONE REST DAY IN A WEEK THE LAST OF SUCH REST DAYS SHALL BE THE REST DAY
  71. 71. REST DAY FOR ANY WORK CARRIED OUT IN EXCESS OF THE NORMAL HOURS OF WORK ON A REST DAY BY AN EMPLOYEE SHALL BE PAID AT A RATE WHICH IS NOT LESS THAN TWO TIMES HIS HOURLY RATE OF PAY.
  72. 72. REST DAY THE EMPLOYER SHALL PREPARE A ROSTER BEFORE THE COMMENCEMENT OF THE MONTH IN WHICH THE REST DAYS FALL INFORMING THE EMPLOYEE OF THE DAYS APPOINTED TO BE HIS REST DAYS
  73. 73. REST DAY EVERY SUCH ROSTER AND EVERY PARTICULAR RECORDED THEREIN SHALL BE PRESERVED AND SHALL BE MADE AVAILABLE FOR INSPECTION FOR A PERIOD NOT EXCEEDING SIX YEARS FROM THE LAST DAY OF THE MONTH IN RESPECT OF WHICH THE ROSTER WAS PREPARED OR CAUSE TO BE PREPARED.
  74. 74. HOLIDAYS EVERY EMPLOYEE SHALL BE ENTITLED TO A PAID HOLIDAY AT HIS ORDINARY RATE OF PAY ON TEN GAZETTED PUBLIC HOLIDAYS IN ANY ONE CALENDAR YEAR, FOUR OF WHICH SHALL BE-- • THE NATIONAL DAY; • THE BIRTHDAY OF THE YANG DI-PERTUAN AGONG;
  75. 75. HOLIDAYS EVERY EMPLOYEE SHALL BE ENTITLED TO A PAID HOLIDAY AT HIS ORDINARY RATE OF PAY ON TEN GAZETTED PUBLIC HOLIDAYS IN ANY ONE CALENDAR YEAR, FOUR OF WHICH SHALL BE-- • THE BIRTHDAY OF THE RULER OR THE YANG DI-PERTUA NEGERI, AS THE CASE MAY BE, OF THE STATE IN WHICH THE EMPLOYEE WHOLLY OR MAINLY WORKS UNDER HIS CONTRACT OF SERVICE, OR THE FEDERAL TERRITORY DAY, IF THE EMPLOYEE WHOLLY OR MAINLY WORKS IN THE FEDERAL TERRITORY; AND • THE WORKERS' DAY:
  76. 76. HOLIDAYS PROVIDED THAT IF ANY OF THE SAID TEN GAZETTED PUBLIC HOLIDAYS FALLS ON A REST DAY THE WORKING DAY FOLLOWING IMMEDIATELY THEREAFTER SHALL BE A PAID HOLIDAY IN SUBSTITUTION THEREFOR.
  77. 77. HOLIDAYS THE EMPLOYER SHALL EXHIBIT CONSPICUOUSLY AT THE PLACE OF EMPLOYMENT BEFORE THE COMMENCEMENT OF EACH CALENDAR YEAR A NOTICE SPECIFYING THE REMAINING SIX GAZETTED PUBLIC HOLIDAYS IN RESPECT OF WHICH HIS EMPLOYEES SHALL BE ENTITLED TO PAID HOLIDAYS:
  78. 78. HOLIDAYS PROVIDED THAT BY AGREEMENT BETWEEN THE EMPLOYER AND AN EMPLOYEE ANY OTHER DAY OR DAYS MAY BE SUBSTITUTED FOR ONE OR MORE OF THE SAID REMAINING SIX GAZETTED PUBLIC HOLIDAYS.
  79. 79. HOLIDAYS WHERE ANY OF THE SAID TEN GAZETTED PUBLIC HOLIDAYS OR ANY OTHER DAY SUBSTITUTED THEREFOR AS PROVIDED FALLS WITHIN THE PERIOD DURING WHICH AN EMPLOYEE IS ON SICK LEAVE OR ANNUAL LEAVE TO WHICH THE EMPLOYEE IS ENTITLED UNDER THIS ACT, OR FALLS DURING THE PERIOD OF TEMPORARY DISABLEMENT UNDER THE WORKMEN'S COMPENSATION ACT 1952, OR UNDER THE EMPLOYEES SOCIAL SECURITY ACT 1969, THE EMPLOYER SHALL GRANT ANOTHER DAY AS A PAID HOLIDAY IN SUBSTITUTION FOR SUCH PUBLIC HOLIDAY OR THE DAY SUBSTITUTED THEREFOR.
  80. 80. HOLIDAYS ANY EMPLOYEE WHO ABSENTS HIMSELF FROM WORK ON THE WORKING DAY IMMEDIATELY PRECEDING OR IMMEDIATELY SUCCEEDING A PUBLIC HOLIDAY OR TWO OR MORE CONSECUTIVE PUBLIC HOLIDAYS OR ANY DAY OR DAYS SUBSTITUTED THEREFOR UNDER THIS SECTION WITHOUT THE PRIOR CONSENT OF HIS EMPLOYER SHALL NOT BE ENTITLED TO ANY HOLIDAY PAY FOR SUCH HOLIDAY OR CONSECUTIVE HOLIDAYS UNLESS HE HAS A REASONABLE EXCUSE FOR SUCH ABSENCE.
  81. 81. “SUDDEN” PUBLIC HOLIDAYS THERE HAVE BEEN INSTANCES WHERE THE GOVERNMENT HAS DECLARED A PUBLIC HOLIDAY WITHOUT MUCH NOTICE TO THE PUBLIC. ONE EXAMPLE WAS IN 2010 WHEN THE GOVERNMENT DECLARED A PUBLIC HOLIDAY UNDER THE HOLIDAYS ACT 1951 BECAUSE OF MALAYSIA’S VICTORY AT THE AFF SUZUKI CUP.
  82. 82. “SUDDEN” PUBLIC HOLIDAYS THE EMPLOYMENT ACT PROVIDES THAT EMPLOYERS MUST ALSO OBSERVE ANY PUBLIC HOLIDAY DECLARED UNDER THE HOLIDAYS ACT 1951. HOWEVER, FOR THIS CATEGORY OF PUBLIC HOLIDAYS, THE EMPLOYER HAS AN OPTION TO CHOOSE ANOTHER DAY AS A PAID PUBLIC HOLIDAY IN SUBSTITUTION, IF THEY DO NOT WANT TO OBSERVE THIS PUBLIC HOLIDAY. THERE IS NO REQUIREMENT FOR EMPLOYERS TO GET THE CONSENT OF EMPLOYEES TO MAKE THE SUBSTITUTION.
  83. 83. HOSPITALISATION AND NON HOSPITALISATION BENEFITS MODULE 5
  84. 84. SICK LEAVE ENTITLEMENT AN EMPLOYEE SHALL, AFTER EXAMINATION AT THE EXPENSE OF THE EMPLOYER -- • BY A REGISTERED MEDICAL PRACTITIONER DULY APPOINTED BY THE EMPLOYER; OR • IF NO SUCH MEDICAL PRACTITIONER IS APPOINTED OR, IF HAVING REGARD TO THE NATURE OR CIRCUMSTANCES OF THE ILLNESS, THE SERVICES OF THE MEDICAL PRACTITIONER SO APPOINTED ARE NOT OBTAINABLE WITHIN A REASONABLE TIME OR DISTANCE, BY ANY OTHER REGISTERED MEDICAL PRACTITIONER OR BY A MEDICAL OFFICER, BE ENTITLED TO PAID SICK LEAVE
  85. 85. SICK LEAVE @ ENTITLEMENT IF THERE IS NO HOSPITALISATION, THE NUMBER OF DAYS OF SICK LEAVE SHALL BE 14 DAYS IN EACH CALENDAR YEAR IF THE EMPLOYEE HAS BEEN EMPLOYED FOR LESS THAN 2 YEARS; 18 DAYS IN EACH CALENDAR YEAR IF THE EMPLOYEE HAS BEEN EMPLOYED FOR 2 YEARS OR MORE BUT LESS THAN 5 YEARS; (22 DAYS IN EACH CALENDAR YEAR IF THE EMPLOYEE HAS BEEN EMPLOYED FOR 5 YEARS OR MORE
  86. 86. SICK LEAVE @ ENTITLEMENT IF THERE IS HOSPITALISATION 60 DAYS IN EACH CALENDAR YEAR IF HOSPITALISATION IS NECESSARY, AS MAY BE CERTIFIED BY SUCH REGISTERED MEDICAL PRACTITIONER OR MEDICAL OFFICER
  87. 87. SICK LEAVE @ PENALTIES AN EMPLOYEE WHO ABSENTS HIMSELF ON SICK LEAVE WHICH IS NOT CERTIFIED BY A REGISTERED MEDICAL PRACTITIONER OR A MEDICAL OFFICER OR A DENTAL SURGEON; OR WHICH IS CERTIFIED BY SUCH REGISTERED MEDICAL PRACTITIONER OR MEDICAL OFFICER OR DENTAL SURGEON, BUT WITHOUT INFORMING OR ATTEMPTING TO INFORM HIS EMPLOYER OF SUCH SICK LEAVE WITHIN FORTY-EIGHT HOURS OF THE COMMENCEMENT THEREOF: SHALL BE DEEMED TO ABSENT HIMSELF FROM WORK WITHOUT THE PERMISSION OF HIS EMPLOYER AND WITHOUT REASONABLE EXCUSE FOR THE DAYS ON WHICH HE IS SO ABSENT FROM WORK.
  88. 88. SICK LEAVE @ PAYMENT THE EMPLOYER SHALL PAY THE EMPLOYEE HIS ORDINARY RATE OF PAY FOR EVERY DAY OF SUCH SICK LEAVE, AND AN EMPLOYEE ON A MONTHLY RATE OF PAY SHALL BE DEEMED TO HAVE RECEIVED HIS SICK LEAVE PAY IF HE RECEIVES FROM HIS EMPLOYER HIS MONTHLY WAGES FOR THE DAY OR DAYS ON WHICH HE IS ON SICK LEAVE.
  89. 89. SICK LEAVE @ UNPAID NO EMPLOYEE SHALL BE ENTITLED TO PAID SICK LEAVE FOR THE PERIOD DURING WHICH THE EMPLOYEE IS ENTITLED TO MATERNITY ALLOWANCE UNDER PART IX, OR FOR ANY PERIOD DURING WHICH HE IS RECEIVING ANY COMPENSATION FOR DISABLEMENT UNDER THE WORKMEN'S COMPENSATION ACT 1952, OR ANY PERIODICAL PAYMENTS FOR TEMPORARY DISABLEMENT UNDER THE EMPLOYEES SOCIAL SECURITY ACT 1969.
  90. 90. PAID AND UNPAID MATERNITY LEAVE MODULE 6
  91. 91. MATERNITY LEAVE @ PAID IF YOU HAVE WORKED FOR YOUR EMPLOYER FOR AT LEAST 90 DAYS IN THE FOUR MONTHS BEFORE STARTING MATERNITY LEAVE. UNDER THE 1955 EMPLOYMENT ACT, YOU ARE THEN ENTITLED TO AT LEAST 60 CONSECUTIVE DAYS OF MATERNITY LEAVE AT FULL PAY.
  92. 92. MATERNITY LEAVE @ UNPAID A FEMALE EMPLOYEE SHALL NOT BE ENTITLED TO ANY MATERNITY ALLOWANCE IF AT THE TIME OF HER CONFINEMENT SHE HAS FIVE OR MORE SURVIVING CHILDREN.
  93. 93. MATERNITY LEAVE @ PUBLIC HOLIDAY IF YOU'RE TAKING YOUR MATERNITY LEAVE IN A CONTINUOUS PERIOD, YOU AREN'T ENTITLED TO ADDITIONAL PAY FOR PUBLIC HOLIDAYS. HOWEVER, IF YOU ARE ON UNPAID MATERNITY LEAVE, YOU ARE ENTITLED TO PAID PUBLIC HOLIDAY DURING THIS PERIOD.
  94. 94. MATERNITY LEAVE @ CONTRACT STAFF UNDER THE LAW, EMPLOYEES ARE ENTITLED TO STATUTORY BENEFITS, INCLUDING PAID MATERNITY LEAVE, WITHIN THEIR PERIOD OF EMPLOYMENT. IN ADDITION, THE EMPLOYMENT ACT PROHIBITS UNFAIR DISMISSAL AT ANY STAGE OF PREGNANCY.
  95. 95. MATERNITY LEAVE @ COMMENCEMENT FEMALE EMPLOYEES MAY COMMENCE THEIR MATERNITY LEAVE AT ANY TIME AS LONG AS IT IS NOT EARLIER THAN 30 DAYS BEFORE CONFINEMENT OR LATER THAN THE DAY IMMEDIATELY FOLLOWING CONFINEMENT. ABSENCE FROM WORK OUTSIDE OF THESE PERIODS WOULD NOT BE TREATED AS MATERNITY LEAVE AND WOULD NOT ENTITLE THE EMPLOYEE TO MATERNITY ALLOWANCE.
  96. 96. MATERNITY LEAVE @ COMMENCEMENT HOWEVER, FEMALE EMPLOYEES MAY BE REQUIRED TO COMMENCE THEIR MATERNITY LEAVE EARLIER (UP TO 14 DAYS BEFORE CONFINEMENT) THAN THEIR PREFERRED DATE IF A MEDICAL OFFICER DETERMINES THAT THEY ARE UNABLE PERFORM THEIR DUTIES SATISFACTORILY AS A RESULT OF THEIR ADVANCED STATE OF PREGNANCY.
  97. 97. MATERNITY LEAVE @ PROTECTION FROM DISMISSAL IF A FEMALE EMPLOYEE REMAINS ABSENT FROM WORK AFTER SHE HAS EXHAUSTED HER MATERNITY LEAVE DUE TO A PREGNANCY RELATED ILLNESS (AS CERTIFIED BY A REGISTERED MEDICAL PRACTITIONER), SHE SHALL BE PROTECTED FROM DISMISSAL FOR A PERIOD OF UP TO 90 DAYS AFTER THE EXPIRATION OF HER MATERNITY LEAVE.
  98. 98. WAGES AND SALARY MODULE 7
  99. 99. wages - definition (section 2) • BASIC WAGES AND ALL OTHER PAYMENTS IN CASH PAYABLE TO AN EMPLOYEE FOR WORK DONE IN RESPECT OF HIS CONTRACT OF SERVICE BUT DOES NOT INCLUDE • BENEFITS - PETROL, HOUSING • ALLOWANCE - TRAVELLING • STATUTORY CONTRIBUTIONS - EPF, SOCSO • BONUS
  100. 100. NON PAYMENT OF WAGES • THE EA 1955 ALLOWS THE EMPLOYEE WHOSE INCOME IS RM 5,000.00 AND BELOW TO MAKE A CLAIM AT THE LABOUR DEPARTMENT IF HE IS NOT PAID WAGES
  101. 101. MINIMUM WAGES UNDER THE MINIMUM WAGES ORDER 2016, EFFECTIVE 1 JULY 2016, THE MINIMUM WAGE IS RM1,000 A MONTH (PENINSULAR MALAYSIA) AND RM920 A MONTH (EAST MALAYSIA AND LABUAN)
  102. 102. WAGE PERIOD A CONTRACT OF SERVICE SHALL SPECIFY A WAGE PERIOD NOT EXCEEDING ONE MONTH. IF IN ANY CONTRACT OF SERVICE NO WAGE PERIOD IS SPECIFIED THE WAGE PERIOD SHALL FOR THE PURPOSES OF THE CONTRACT BE DEEMED TO BE ONE MONTH.
  103. 103. WAGES @ PAYMENT PERIOD EVERY EMPLOYER SHALL PAY TO EACH OF HIS EMPLOYEES NOT LATER THAN THE SEVENTH DAY AFTER THE LAST DAY OF ANY WAGE PERIOD THE WAGES, LESS LAWFUL DEDUCTIONS, EARNED BY SUCH EMPLOYEE DURING SUCH WAGE PERIOD:
  104. 104. WAGES @ TERMINATION OF SERVICE WHERE AN EMPLOYER TERMINATE THE CONTRACT OF SERVICE OF AN EMPLOYEE WITHOUT NOTICE: THE WAGES, LESS ANY DEDUCTIONS WHICH THE EMPLOYER IS ENTITLED TO MAKE UNDER SECTION 24, EARNED BY SUCH EMPLOYEE UP TO AND INCLUDING THE DAY IMMEDIATELY PRECEDING THE DAY ON WHICH THE TERMINATION OF THE CONTRACT OF SERVICE TAKES EFFECT; AND
  105. 105. WAGES @ TERMINATION OF SERVICE • IN ADDITION, WHERE THE EMPLOYER TERMINATES THE CONTRACT OF SERVICES UNDER SECTION 13 (1), THE INDEMNITY PAYABLE TO THE EMPLOYEE UNDER THAT SUBSECTION, SHALL BE PAID BY THE EMPLOYER TO THE EMPLOYEE NOT LATER THAN THE DAY ON WHICH SUCH CONTRACT OF SERVICE IS SO TERMINATED
  106. 106. WAGES @ TERMINATION OF SERVICE WHERE AN EMPLOYEE TERMINATES HIS CONTRACT OF SERVICE WITH AN EMPLOYER WITHOUT NOTICE IN ACCORDANCE WITH SECTION 13 (1) OR (2) OR SECTION 14 (3), THE WAGES, LESS ANY DEDUCTIONS WHICH THE EMPLOYER IS ENTITLED TO MAKE UNDER SECTION 24, EARNED BY SUCH EMPLOYEE UP TO AND INCLUDING THE DAY IMMEDIATELY PRECEDING THE DAY ON WHICH THE TERMINATION OF THE CONTRACT OF SERVICE TAKES EFFECT SHALL BE PAID BY THE EMPLOYER TO THE EMPLOYEE NOT LATER THAN THE THIRD DAY AFTER THE DAY ON WHICH THE CONTRACT OF SERVICE IS SO TERMINATED.
  107. 107. LIMITED ADVANCE TO EMPLOYEES (SECTION 22) NO EMPLOYER SHALL DURING ANY ONE MONTH MAKE TO AN EMPLOYEE AN ADVANCE OR ADVANCES OF WAGES NOT ALREADY EARNED BY SUCH EMPLOYEE, UNLESS TO PURCHASE A HOUSE OR TO BUILD OR IMPROVE A HOUSE TO PURCHASE LAND TO PURCHASE LIVESTOCK TO PURCHASE A MOTORCAR, A MOTORCYCLE OR A BICYCLE TO PURCHASE SHARES OF THE EMPLOYER'S BUSINESS OFFERED FOR SALE BY THE EMPLOYER;
  108. 108. UNPAID WAGES @ JAIL / COURT ACCORDING TO SECTION 23 OF THE EMPLOYMENT ACT 1955 THIS BASICALLY MEANS, AN EMPLOYER WILL NOT HAVE TO PAY THE WAGES OF AN EMPLOYEE WHO IS ABSENT FROM WORK DUE TO BEING IMPRISONED OR BECAUSE HE/SHE IS REQUIRED TO ATTEND IN COURT UNLESS IF IT IS ON BEHALF OF THE EMPLOYER.
  109. 109. WAGES @ LAWFUL DEDUCTIONS IT SHALL BE LAWFUL FOR AN EMPLOYER TO MAKE THE FOLLOWING DEDUCTIONS: • DEDUCTIONS TO THE EXTENT OF ANY OVERPAYMENT OF WAGES MADE DURING THE IMMEDIATELY PRECEDING THREE MONTHS FROM THE MONTH IN WHICH DEDUCTIONS ARE TO BE MADE, BY THE EMPLOYER TO THE EMPLOYEE BY THE EMPLOYER'S MISTAKE; • DEDUCTIONS FOR THE INDEMNITY DUE TO THE EMPLOYER BY THE EMPLOYEE UNDER SECTION 13 (1); (TERMINATION OF CONTRACT WITHOUT NOTICE)
  110. 110. WAGES @ LAWFUL DEDUCTIONS IT SHALL BE LAWFUL FOR AN EMPLOYER TO MAKE THE FOLLOWING DEDUCTIONS: • (DEDUCTIONS FOR THE RECOVERY OF ADVANCES OF WAGES MADE UNDER SECTION 22 PROVIDED NO INTEREST IS CHARGED ON THE ADVANCES; AND • DEDUCTIONS AUTHORISED BY ANY OTHER WRITTEN LAW.
  111. 111. WAGES @ LAWFUL DEDUCTIONS THE FOLLOWING DEDUCTIONS SHALL ONLY BE MADE AT THE REQUEST IN WRITING OF THE EMPLOYEE: • DEDUCTIONS IN RESPECT OF THE PAYMENTS TO A REGISTERED TRADE UNION OR CO- OPERATIVE THRIFT AND LOAN SOCIETY OF ANY SUM OF MONEY DUE TO THE TRADE UNION OR SOCIETY BY THE EMPLOYEE ON ACCOUNT OF ENTRANCE FEES, SUBSCRIPTIONS, INSTALMENTS AND INTEREST ON LOANS, OR OTHER DUES; AND • DEDUCTIONS IN RESPECT OF PAYMENTS FOR ANY SHARES OF THE EMPLOYER'S BUSINESS OFFERED FOR SALE BY THE EMPLOYER AND PURCHASED BY THE EMPLOYEE.
  112. 112. WAGES @ LAWFUL DEDUCTIONS GENERALLY, AN EMPLOYER IS REQUIRED TO MAKE THE FOLLOWING DEDUCTIONS FROM AN EMPLOYEE’S SALARY (IRRESPECTIVE OF WHETHER THEY ARE AN EA EMPLOYEE OR A NON-EA EMPLOYEE): • EMPLOYEE’S CONTRIBUTION TO EMPLOYEES PROVIDENT FUND (EPF) • EMPLOYEE’S CONTRIBUTION TO SOCIAL SECURITY ORGANIZATION (SOCSO) • MONTHLY INCOME TAX DEDUCTION
  113. 113. WAGES @ LAWFUL DEDUCTIONS THE FOLLOWING DEDUCTIONS SHALL NOT BE MADE EXCEPT AT THE REQUEST IN WRITING OF THE EMPLOYEE AND WITH THE PRIOR PERMISSION IN WRITING OF THE DIRECTOR GENERAL: • DEDUCTIONS IN RESPECT OF THE PAYMENTS INTO ANY SUPERANNUATION SCHEME, PROVIDENT FUND, EMPLOYER'S WELFARE SCHEME OR INSURANCE SCHEME ESTABLISHED FOR THE BENEFIT OF THE EMPLOYEE
  114. 114. WAGES @ LAWFUL DEDUCTIONS THE FOLLOWING DEDUCTIONS SHALL NOT BE MADE EXCEPT AT THE REQUEST IN WRITING OF THE EMPLOYEE AND WITH THE PRIOR PERMISSION IN WRITING OF THE DIRECTOR GENERAL: • DEDUCTIONS IN RESPECT OF REPAYMENTS OF ADVANCES OF WAGES MADE TO AN EMPLOYEE UNDER SECTION 22 WHERE INTEREST IS LEVIED ON THE ADVANCES AND DEDUCTIONS IN RESPECT OF THE PAYMENTS OF THE INTEREST SO LEVIED;
  115. 115. WAGES @ LAWFUL DEDUCTIONS THE FOLLOWING DEDUCTIONS SHALL NOT BE MADE EXCEPT AT THE REQUEST IN WRITING OF THE EMPLOYEE AND WITH THE PRIOR PERMISSION IN WRITING OF THE DIRECTOR GENERAL: • DEDUCTIONS IN RESPECT OF PAYMENTS TO A THIRD PARTY ON BEHALF OF THE EMPLOYEE; • DEDUCTIONS IN RESPECT OF PAYMENTS FOR THE PURCHASE BY THE EMPLOYEE OF ANY GOODS OF THE EMPLOYER'S BUSINESS OFFERED FOR SALE BY THE EMPLOYER; AND
  116. 116. WAGES @ LAWFUL DEDUCTIONS THE FOLLOWING DEDUCTIONS SHALL NOT BE MADE EXCEPT AT THE REQUEST IN WRITING OF THE EMPLOYEE AND WITH THE PRIOR PERMISSION IN WRITING OF THE DIRECTOR GENERAL: • DEDUCTIONS IN RESPECT OF THE RENTAL FOR ACCOMMODATION AND THE COST OF SERVICES, FOOD AND MEALS PROVIDED BY THE EMPLOYER TO THE EMPLOYEE 'AT THE EMPLOYEE'S REQUEST OR UNDER THE TERMS OF THE EMPLOYEE'S CONTRACT OF SERVICE.
  117. 117. WAGES @ LAWFUL DEDUCTIONS THE TOTAL OF ANY AMOUNTS DEDUCTED UNDER THIS SECTION FROM THE WAGES OF AN EMPLOYEE IN RESPECT OF ANY ONE MONTH SHALL NOT EXCEED FIFTY PER CENTUM OF THE WAGES EARNED BY THAT EMPLOYEE IN THAT MONTH.
  118. 118. PRIORITY OF WAGES • IF THE EMPLOYER IS FORCED BY COURT TO SELL OF PROPERTIES AND ASSETS TO PAY DEBTS, EMPLOYEES WHO HAVE NOT BEEN PAID THEIR WAGES RECEIVE PRIORITIES OVER ALL DEBTORS BUT THEY CAN ONLY CLAIM A MAXIMUM OF 4 MONTHS WAGES
  119. 119. DISCIPLINARY PROCEDURE AND ACTION MODULE 8
  120. 120. THE MEANING OF EMPLOYEE MISCONDUCT ANY CONDUCT ON THE PART OF EMPLOYEE WHICH IS INCONSISTENT WITH THE FAITHFUL DISCHARGE OF HIS DUTIES, OR ANY BREACH OF THE EXPRESS OR IMPLIED DUTIES OF AN EMPLOYEE TOWARDS HIS EMPLOYER. IT IS ALSO KNOWN AS A FORM OF IMPROPER BEHAVIOUR OR AN INTENTIONAL WRONGDOING OR A DELIBERATE VIOLATION OF A RULE OR STANDARD OF BEHAVIOUR.
  121. 121. EA 1955 (SECTION 14) S14 OF THE EMPLOYMENT ACT 1955 PROVIDES THAT AN EMPLOYER MAY PUNISH AN EMPLOYEE ON GROUNDS OF MISCONDUCT AFTER DUE INQUIRY. DUE INQUIRY HERE MEANS THE COMPANY MUST INVESTIGATE THE CASE AND PROVIDE THE EMPLOYEE AN OPPORTUNITY TO DEFEND HIMSELF BEFORE AN INDEPENDENT PANEL BEFORE JUDGMENT IS PUT ON HIM.
  122. 122. EA 1955 (SECTION 14) S14 GOES ON TO PROVIDE THAT WHILE INVESTIGATING A MATTER, THE COMPANY HAS THE RIGHT TO SUSPEND AN EMPLOYEE FROM WORK IF HIS PRESENCE AT THE WORKPLACE WOULD AFFECT INVESTIGATIONS, I.E. BY TEMPERING WITH EVIDENCE OR BY THREATENING WITNESSES, ETC.
  123. 123. DEALING WITH MISCONDUCT AN EMPLOYER WHO CONTINUES TO KEEP AN EMPLOYEE IN EMPLOYMENT WITH FULL KNOWLEDGE THAT THE EMPLOYEE HAS COMMITTED A BREACH OF DUTY/MISCONDUCT CONDONES THE BREACH, AND SUCH WAIVER OF RETROACTIVE PERMISSION PREVENTS THE EMPLOYER FROM LATER PUNISHING THE EMPLOYEE FOR IT EMPLOYERS ARE ENCOURAGED TO BE TACTFUL AND ALWAYS HAVE DOCUMENT TRAILS IN EVERY SINGLE MATTER
  124. 124. MAJOR & MINOR MISCONDUCT THERE IS NO HARD AND FAST RULE ON WHAT CONSTITUTES MAJOR MISCONDUCT OR MINOR MISCONDUCT. THE EMPLOYMENT ACT 1955 DOES NOT MAKE REFERENCE TO THE WORDS MAJOR AND MINOR. COMPANIES GENERALLY LIKE TO DIFFERENTIATE MAJOR AND MINOR MISCONDUCT BY IDENTIFYING DIFFERENT TYPES OF PUNISHMENTS FOR BOTH CATEGORIES OF MISCONDUCT.
  125. 125. MAJOR & MINOR MISCONDUCT N FACT, THE LIST OF MINOR AND MAJOR MISCONDUCT IS SUBJECTIVE AND MIGHT VARY DEPENDING ON THE NATURE OF EACH BUSINESS. FOR EXAMPLE, THE ACT OF SMOKING MIGHT NOT BE A MAJOR MISCONDUCT IN A LEGAL FIRM BUT IT MIGHT BE DEEMED AS MAJOR MISCONDUCT IN AN OIL AND GAS PLANT.
  126. 126. MAJOR & MINOR MISCONDUCT MISCONDUCT THAT IS SERIOUS ENOUGH TO WARRANT TERMINATION AS MAJOR MISCONDUCT AND THE OTHERS AS MINOR MISCONDUCT. HOWEVER, AN EMPLOYEE WHO HABITUALLY COMMITS ACTS OF MINOR MISCONDUCT WILL BE DEEMED TO HAVE COMMITTED A MAJOR ACT OF MISCONDUCT. I.E. LATE-COMING IS MINOR MISCONDUCT BUT HABITUAL LATE-COMING WOULD THEN BE MAJOR MISCONDUCT.
  127. 127. TERMINATION FOR MISCONDUCT EXAMPLES OF GROUNDS FOR TERMINATION WOULD INCLUDE MISCONDUCT, POOR PERFORMANCE, REDUNDANCY, ETC. S20 OF THE INDUSTRIAL RELATIONS ACT 1967 PROVIDES THAT ANY EMPLOYEE WHO FEELS THAT HE HAS BEEN DISMISSED WITHOUT JUST CAUSE AND EXCUSE MAY FILE AN ACTION FOR REINSTATEMENT AT THE IR DEPT.
  128. 128. TERMINATION FOR MISCONDUCT IN MATTERS CONCERNING EMPLOYEE MISCONDUCT, IT IS WELL SETTLED THAT DUE PROCESS MUST BE FOLLOWED, I.E. THE ADHERENCE TO THE PRINCIPLES OF NATURAL JUSTICE. IN SIMPLE TERMS, THE EMPLOYEE MUST BE GIVEN AN OPPORTUNITY TO DEFEND HIS CASE BEFORE AN INDEPENDENT PANEL.
  129. 129. SHOW CAUSE LETTERS THE FIRST STEP TO THIS IS THE ISSUANCE OF A SHOW CAUSE LETTER. IF ADMISSION IS OBTAINED, THERE IS NO NEED TO PROCEED FURTHER BUT IF THE EMPLOYEE DENIES THE CHARGES METED OUT AGAINST HIM, THEN THE EMPLOYER WILL HAVE TO INVESTIGATE FURTHER THROUGH A DOMESTIC INQUIRY.
  130. 130. ACTION ON GUILTY EMPLOYEE ONCE THAT IS DONE AND IF THE EMPLOYEE IS SUBSEQUENTLY FOUND GUILTY, PUNISHMENTS MAY THEN BE IMPOSED AND THE NATURE OF PUNISHMENTS VARIES ACCORDING TO THE SEVERITY OF MISCONDUCT COMMITTED.
  131. 131. SHOW CAUSE LETTER IT IS ALRIGHT IF THE EMPLOYEE REFUSES TO SIGN THE SHOW CAUSE LETTER. HAVE SOMEONE TO ACCOMPANY YOU DURING THE DELIVERY PROCESS SO THIS PERSON CAN SIGN OFF AS A WITNESS THAT THIS LETTER WAS SERVED ON THE EMPLOYEE. TO TAKE IT ONE STEP FURTHER, THE LETTER CAN THEREAFTER BE COURIERED TO THE EMPLOYEE’S RESIDENCE, IN WHICH CASE THE SLIP CAN BE USED AS PROOF OF RECEIPT.
  132. 132. SHOW CAUSE LETTER ALSO, MAKE SURE THAT YOUR SHOW CAUSE LETTER WOULD COVER FOR A SITUATION WHERE THE EMPLOYEE FAILS TO REPLY THE LETTER WITHIN THE STIPULATED TIME. FAILURE TO REPLY SHOULD ALLOW YOU TO PROCEED WITH PUNISHMENTS ON THE ASSUMPTION THAT NO EXPLANATION COULD BE OFFERED.
  133. 133. SUSPENSION FOR MISCONDUCT N EMPLOYEE MAY BE SUSPENDED FOR A MAXIMUM OF 14 DAYS ON HALF PAY. ANY SUBSEQUENT EXTENSION OF THE SUSPENSION PERIOD SHALL BE ON FULL PAY. HOWEVER, IF THE EMPLOYEE IS FOUND NOT GUILTY, THE 14 DAYS HELD DURING THE FIRST PERIOD OF SUSPENSION WILL HAVE TO BE REINSTATED IN FULL.
  134. 134. PUNISHMENT CONSIDERATIONS BEFORE DECIDING ON PUNISHMENTS, EMPLOYERS SHOULD TAKE INTO ACCOUNT PAST RECORDS, PERFORMANCE INDICATORS, YEARS OF SERVICE, GENERAL BEHAVIOUR OF AN EMPLOYEE, LEVEL OF SENIORITY, ETC. THESE ARE MITIGATING FACTORS THAT SHOULD BE TAKEN INTO ACCOUNT BEFORE PUNISHING AN EMPLOYEE.
  135. 135. NOTICE OF TERMINATION FOR MISCONDUCT ONCE AN EMPLOYEE IS FOUND GUILTY OF MISCONDUCT AND THE COMPANY DECIDES TO PUNISH AN EMPLOYEE, HE IS NOT ENTITLED TO NOTICE AND CAN BE TERMINATED IMMEDIATELY. ANY ANNUAL LEAVE NOT UTILISED WILL ALSO BE FORFEITED.
  136. 136. PAYMENT FOR UNFAIR DISMISSAL THE PROBATIONER SHALL BE ENTITLED TO ANY BACK WAGES, WHICH SHALL NOT EXCEED TWELVE MONTHS’ BACK WAGES FROM THE DATE OF DISMISSAL AS PER THE SALARY GIVEN. WHEN A CONFIRMED EMPLOYEE IS UNFAIRLY DISMISSED, THE ENTITLEMENT TO ANY BACK WAGES WOULD BE BASED ON THE NUMBER OF YEARS THEY HAVE SERVED THE COMPANY.
  137. 137. SEXUAL HARASSMENT MODULE 9
  138. 138. EA 1955 - SECTION 15A SEXUAL HARASSMENT. MEANS ANY COMPLAINT RELATING TO SEXUAL HARASSMENT MADE— BY AN EMPLOYEE AGAINST ANOTHER EMPLOYEE; BY AN EMPLOYEE AGAINST ANY EMPLOYER; OR BY AN EMPLOYER AGAINST AN EMPLOYEE.
  139. 139. SEXUAL HARASSMENT INQUIRIES UPON RECEIPT OF A COMPLAINT OF SEXUAL HARASSMENT, AN EMPLOYER OR ANY CLASS OF EMPLOYERS SHALL INQUIRE INTO THE COMPLAINT IN A MANNER PRESCRIBED BY THE MINISTER.
  140. 140. SEXUAL HARASSMENT INQUIRIES WHERE AN EMPLOYER REFUSES TO INQUIRE INTO THE COMPLAINT OF SEXUAL HARASSMENT AS REQUIRED UNDER EA 1955, HE SHALL, AS SOON AS PRACTICABLE BUT IN ANY CASE NOT LATER THAN THIRTY DAYS AFTER THE DATE OF THE RECEIPT OF THE COMPLAINT, INFORM THE COMPLAINANT OF THE REFUSAL AND THE REASONS FOR THE REFUSAL IN WRITING.
  141. 141. SEXUAL HARASSMENT INQUIRIES AN EMPLOYER MAY REFUSE TO INQUIRE INTO ANY COMPLAINT OF SEXUAL HARASSMENT AS REQUIRED IF— THE COMPLAINT OF SEXUAL HARASSMENT HAS PREVIOUSLY BEEN INQUIRED INTO AND NO SEXUAL HARASSMENT HAS BEEN PROVEN; OR
  142. 142. SEXUAL HARASSMENT INQUIRIES THE EMPLOYER IS OF THE OPINION THAT THE COMPLAINT OF SEXUAL HARASSMENT IS FRIVOLOUS, VEXATIOUS OR IS NOT MADE IN GOOD FAITH. ANY COMPLAINANT WHO IS DISSATISFIED WITH THE REFUSAL OF THE EMPLOYER TO INQUIRE INTO HIS COMPLAINT OF SEXUAL HARASSMENT, MAY REFER THE MATTER TO THE DIRECTOR GENERAL.
  143. 143. SEXUAL HARASSMENT INQUIRIES THE DIRECTOR GENERAL AFTER REVIEWING THE MATTER REFERRED TO HIM: IF HE THINKS THE MATTER SHOULD BE INQUIRED INTO, DIRECT THE EMPLOYER TO CONDUCT AN INQUIRY; OR IF HE AGREES WITH THE DECISION OF THE EMPLOYER NOT TO CONDUCT THE INQUIRY, INFORM THE PERSON WHO REFERRED THE MATTER TO HIM THAT NO FURTHER ACTION WILL BE TAKEN.
  144. 144. SEXUAL HARASSMENT FINDINGS BY THE EMPLOYER WHERE THE EMPLOYER CONDUCTS AN INQUIRY INTO A COMPLAINT OF SEXUAL HARASSMENT RECEIVED UNDER SUBSECTION 81B(1) AND THE EMPLOYER IS SATISFIED THAT SEXUAL HARASSMENT IS PROVEN, THE EMPLOYER SHALL— IN THE CASE WHERE THE PERSON AGAINST WHOM THE COMPLAINT OF SEXUAL HARASSMENT IS MADE IS AN EMPLOYEE, TAKE DISCIPLINARY ACTION WHICH MAY INCLUDE THE FOLLOWING:
  145. 145. SEXUAL HARASSMENT FINDINGS BY THE EMPLOYER DISMISSING THE EMPLOYEE WITHOUT NOTICE; DOWNGRADING THE EMPLOYEE; OR IMPOSING ANY OTHER LESSER PUNISHMENT AS HE DEEMS JUST AND FIT, AND WHERE THE PUNISHMENT OF SUSPENSION WITHOUT WAGES IS IMPOSED, IT SHALL NOT EXCEED A PERIOD OF TWO WEEKS; AND
  146. 146. SEXUAL HARASSMENT FINDINGS BY THE EMPLOYER IN THE CASE WHERE THE PERSON AGAINST WHOM THE COMPLAINT OF SEXUAL HARASSMENT IS MADE IS A PERSON OTHER THAN AN EMPLOYEE, RECOMMEND THAT THE PERSON BE BROUGHT BEFORE AN APPROPRIATE DISCIPLINARY AUTHORITY TO WHICH THE PERSON IS SUBJECT TO.
  147. 147. SEXUAL HARASSMENT PENALTIES IF ANY EMPLOYER WHO FAILS— TO INQUIRE INTO COMPLAINTS OF SEXUAL HARASSMENT TO INFORM THE COMPLAINANT OF THE REFUSAL AND THE REASONS FOR THE REFUSAL AS REQUIRED
  148. 148. SEXUAL HARASSMENT PENALTIES TO INQUIRE INTO COMPLAINTS OF SEXUAL HARASSMENT WHEN DIRECTED TO DO SO BY THE DIRECTOR GENERAL OR TO SUBMIT A REPORT OF INQUIRY INTO SEXUAL HARASSMENT TO THE DIRECTOR GENERAL UNDER SUBSECTION COMMITS AN OFFENCE AND SHALL, ON CONVICTION, BE LIABLE TO A FINE NOT EXCEEDING TEN THOUSAND RINGGIT.
  149. 149. RETRENCHMENT BENEFITS MODULE 10
  150. 150. RETRENCHMENT AND REDUNDANCY RETRENCHMENT IS A FORM OF DISMISSAL THAT IS JUSTIFIED ON THE BASIS THAT THE ROLES OF THE EMPLOYEES CONCERNED HAVE BECOME REDUNDANT. PROOF OF REDUNDANCY, THAT IS, SURPLUS OF LABOUR, IS REQUIRED FOR A RETRENCHMENT EXERCISE TO BE VALID. REDUNDANCY CAN ARISE IN MANY SITUATIONS EXAMPLES INCLUDE CESSATION OF JOB FUNCTIONS, MERGER OF WORK UNITS AND DISCONTINUATION OF PRODUCTION LINE.
  151. 151. RETRENCHMENT AND REDUNDANCY PUT IN ANOTHER WAY, REDUNDANCY IS A SITUATION WHERE THE EMPLOYEE OR POSITION IS NO LONGER REQUIRED. RETRENCHMENT IS THE ACTION TAKEN TO TERMINATE THE EMPLOYMENT RELATIONSHIP IN THE EVENT OF REDUNDANCY.
  152. 152. SITUATION FOR RETRENCHMENT COMPANIES THAT ARE SUFFERING LOSSES MAY DECIDE ON A BUSINESS STRATEGY TO MINIMISE THE IMPACT OF POOR ECONOMIC CONDITIONS, FOR EXAMPLE TERMINATING SOME EMPLOYEES AND OUTSOURCING THOSE JOB FUNCTIONS TO THIRD PARTIES IN ORDER TO REDUCE COSTS.
  153. 153. RETRENCHMENT @ JUSTIFICATION THE BURDEN OF PROVING THAT THE RETRENCHMENT WAS BONA FIDE LIES ON THE EMPLOYER, AND IT IS NOT ON THE EMPLOYEE TO SHOW THAT THE RETRENCHMENT WAS UNFAIR.
  154. 154. CODE OF CONDUCT FOR INDUSTRIAL HARMONY THE CODE CONTAINS SUGGESTED CRITERIA FOR EMPLOYERS TO CONSIDER WHEN SELECTING EMPLOYEES TO RETRENCH. THIS INCLUDES: • ABILITY • EXPERIENCE • SKILL AND OCCUPATION QUALIFICATIONS • AGE
  155. 155. CODE OF CONDUCT FOR INDUSTRIAL HARMONY THE CODE CONTAINS SUGGESTED CRITERIA FOR EMPLOYERS TO CONSIDER WHEN SELECTING EMPLOYEES TO RETRENCH. THIS INCLUDES: • FAMILY SITUATION • LENGTH OF SERVICE • STATUS (NON-CITIZENS, CASUAL, TEMPORARY, PERMANENT).
  156. 156. CODE OF CONDUCT FOR INDUSTRIAL HARMONY A COMMON INDUSTRIAL PRACTICE IS ALSO TO RETRENCH EMPLOYEES BASED ON THE LIFO PRINCIPLE, IE “LAST IN, FIRST OUT”, WHEREBY THE MOST JUNIOR EMPLOYEE (MEASURED IN TERMS OF LENGTH OF SERVICE) IN A PARTICULAR CATEGORY IS SELECTED FOR RETRENCHMENT.
  157. 157. CODE OF CONDUCT FOR INDUSTRIAL HARMONY IT IS NOT MANDATORY FOR EMPLOYERS TO USE THE LIFO PRINCIPLE, ALTHOUGH IT IS RECOGNISED AS ONE OF THE MORE OBJECTIVE MEANS OF SELECTION IN CASES WHERE THERE ARE FOREIGN WORKERS OCCUPYING POSTS SIMILAR TO THAT OF LOCAL EMPLOYEES, THE EMPLOYMENT ACT 1955 REQUIRES THAT THE SERVICES OF FOREIGN WORKERS BE TERMINATED FIRST.
  158. 158. NOTIFICATION TO THE AUTHORITIES EMPLOYERS ARE REQUIRED TO SUBMIT AN EMPLOYMENT NOTIFICATION RETRENCHMENT FORM (PK FORM) TO ANY LABOUR OFFICE, FAILURE OF WHICH CARRIES A PUNISHMENT OF A FINE OF RM10,000.00. *PK FORM (RETRENCHMENT/VSS/TEMPORARY LAY OFF & SALARY DEDUCTION FORM)
  159. 159. NOTIFICATION TO THE AUTHORITIES EMPLOYERS ARE REQUIRED TO DISCLOSE INFORMATION SUCH AS THE REASONS FOR THE RETRENCHMENT, NUMBER OF WORKFORCE, NUMBER OF WORKERS INVOLVED IN VOLUNTARY SEPARATION SCHEME, ETC.
  160. 160. NOTIFICATION TO THE AUTHORITIES THE PK FORM IS A NOTIFICATION REQUIREMENT, AND IS NOT A REQUEST FOR APPROVAL. AS SUCH, EMPLOYERS DO NOT NEED APPROVAL FROM THE LABOUR OFFICE BEFORE THEY CAN CONDUCT RETRENCHMENT EXERCISES.
  161. 161. RETRENCHMENT BENEFITS THESE PROVISIONS ARE ONLY APPLICABLE TO EMPLOYEES COMING WITHIN THE PURVIEW OF THE EMPLOYMENT ACT 1955, EG: EMPLOYEES WHOSE SALARY DO NOT EXCEED RM2,000 A MONTH OR WHO ARE ENGAGED IN MANUAL LABOUR FOR EMPLOYEES NOT COVERED UNDER THE EMPLOYMENT ACT 1955, THEIR TERMINATION BENEFITS WOULD DEPEND ON THE TERMS OF THEIR CONTRACT.
  162. 162. RETRENCHMENT BENEFITS LENGTH OF SERVICE TERMINATION BENEFITS LESS THAN 2 YEARS 10 DAYS WAGES FOR EVERY YEAR OF SERVICE MORE THAN 2 YEARS, LESS THAN 5 YEARS 15 DAYS WAGES FOR EVERY YEAR OF SERVICE 5 YEARS OR MORE 20 DAYS WAGES FOR EVERY YEAR OF SERVICE
  163. 163. RETRENCHMENT BENEFITS NOT APPLICABLE IN SITUATIONS DURING ACQUISITIONS, EMPLOYEES MAY BE “TRANSFERRED” TO THE ACQUIRING COMPANY FOR REORGANISATION REASONS. FROM A LEGAL PERSPECTIVE, THIS INVOLVES TERMINATING THE EXISTING EMPLOYMENT CONTRACT WITH THE TARGET COMPANY AND HAVING A NEW JOB OFFER EXTENDED FROM THE ACQUIRER. IN SUCH SITUATIONS, EMPLOYEES ARE NOT ENTITLED TO TERMINATION BENEFITS IF:
  164. 164. RETRENCHMENT BENEFITS NOT APPLICABLE IN SITUATIONS • THE ACQUIRER OFFERS TO CONTINUE TO EMPLOY THE EMPLOYEE UNDER TERMS AND CONDITIONS OF EMPLOYMENT NOT LESS FAVOURABLE THAN THEIR EXISTING CONTRACT WITH THE TARGET COMPANY; AND • THE EMPLOYEE UNREASONABLY REFUSES THE OFFER
  165. 165. CHALLENGING THE RETRENCHMENT EXERCISE IN THE ABSENCE OF A VALID JUSTIFICATION FOR THE RETRENCHMENT EXERCISE, THE TERMINATION MAY AMOUNT TO DISMISSAL WITHOUT JUST CAUSE AND EXCUSE ENTITLING EMPLOYEES TO REMEDIES SUCH AS BACK WAGES, REINSTATEMENT AND/OR COMPENSATION IN LIEU OF REINSTATEMENT.
  166. 166. CHALLENGING THE RETRENCHMENT EXERCISE AN EMPLOYEE WHO BELIEVES THEY HAVE BEEN UNFAIRLY RETRENCHED MUST LODGE A COMPLAINT WITH THE DIRECTOR GENERAL OF INDUSTRIAL RELATIONS WITHIN 60 DAYS FROM THE DATE OF THE DISMISSAL.
  167. 167. CHALLENGING THE RETRENCHMENT EXERCISE IF PARTIES ARE UNABLE TO SETTLE THEIR DISPUTE DURING THE CONCILIATION MEETING ORDERED BY THE DEPARTMENT OF INDUSTRIAL RELATIONS, THE MINISTER OF HUMAN RESOURCES MAY REFER THE MATTER TO THE INDUSTRIAL COURT FOR ADJUDICATION.
  168. 168. BEST PRACTICES FOR RETRENCHMENT BASED ON CODE ON CONDUCT FOR INDUSTRIAL HARMONY FIRSTLY, CONSIDER WHETHER THERE ARE OTHER ALTERNATIVES FOR COST-CUTTING, AS OPPOSED TO RETRENCHMENT, EG: • LIMITATION OF RECRUITMENT (HEAD COUNT FREEZE) • RESTRICTION OF OVERTIME WORK • REDUCTION IN SHIFTS WORKED
  169. 169. BEST PRACTICES FOR RETRENCHMENT BASED ON CODE ON CONDUCT FOR INDUSTRIAL HARMONY FIRSTLY, CONSIDER WHETHER THERE ARE OTHER ALTERNATIVES FOR COST-CUTTING, AS OPPOSED TO RETRENCHMENT, EG: • REDUCTION IN NUMBER OF HOURS WORKED • RETRAINING AND/OR TRANSFERRING TO OTHER DEPARTMENTS OR SUBSIDIARIES WITHIN THE ORGANISATION
  170. 170. BEST PRACTICES FOR RETRENCHMENT BASED ON CODE ON CONDUCT FOR INDUSTRIAL HARMONY • GIVING AS EARLY WARNING, AS PRACTICABLE, TO THE WORKERS CONCERNED • INTRODUCING SCHEMES FOR VOLUNTARY RETRENCHMENT AND RETIREMENT (EG: VSS) • RETIRING WORKERS WHO ARE BEYOND THE RETIREMENT AGE FIRST
  171. 171. BEST PRACTICES FOR RETRENCHMENT BASED ON CODE ON CONDUCT FOR INDUSTRIAL HARMONY • PROVIDE PAYMENT OF REDUNDANCY AND/OR RETIREMENT BENEFITS • HAVING A (WELL DOCUMENTED) OBJECTIVE SELECTION CRITERIA • SPREADING TERMINATION OF EMPLOYEES OVER A LONGER PERIOD • CONSIDER OTHER ALTERNATIVES TO RETRENCHMENT SUCH RE- TRAINING AND/OR TRANSFERRING THE EMPLOYEE TO OTHER DEPARTMENTS / SUBSIDIARIES WITHIN THE ORGANISATION, TEMPORARY REDUCTION OF WORKING HOURS; ETC
  172. 172. BEST PRACTICES FOR RETRENCHMENT BASED ON CODE ON CONDUCT FOR INDUSTRIAL HARMONY ADOPTING BEST PRACTICES IS NOT JUST TO PRE-EMPT THE LIKELIHOOD OF THE EXERCISE BEING SUCCESSFULLY CHALLENGED IN COURT BUT TO ALSO ENSURE THAT EMPLOYERS ADOPT POLICIES THAT ARE IN ACCORDANCE WITH FAIR AND EQUITABLE LABOUR PRACTICE.
  173. 173. applied knowledge is power

×