Thursday, October 9, 2008


There are more than a dozen pieces of legislation which are related to labour law but the most prominent statutes are The Employment Act 1950 and The Industrial Relations Act 1967.

If an employees salary is RM1,500 and below he/she is governed by the Employment Act and if it is above RM1,500 then the working relationship is governed by the Terms & Conditions as stated in the document. When an employee commences work, he is usually issued a letter by the Employer- this letter is described as the Letter Of Appointment.

The Employment Act displays the minimum benefits that an Employer must give to his employees. A Letter of Appointment cannot contain terms and conditions which have less benefits than those contained in the Employment Act 1950.

Further The First Schedule Sect 2(1) of the Employment Act 1950 covers the following categories of persons.

" Any person, irrespective of his occupation, who has entered into a contract of
service with an employer under which such persons wages do not exceed RM1,500 a

1. he is engaged in manula labour including such labour as an artisan or apprentice

Provided that where a person is employed by one employer partly in manual labour
and partly in some other capacity, such person shall not be deemed to be
performing manual labour unless the time during which he is required to perform
manual labour in any one wage period exceeds one half of the total time during
which he is required to work in such wage period;

2. He is engaged in the operation or maintenance of any mechanically propelled
vehicle operated for the transport of passengers or goods or for reward of for
commercial purposes.

3. he supervises or oversees other employees engaged in manual labour employed by
the same employer throughout the performance of their work.

4. he is engaged in any capacity in any vessel registered in Malaysia and who-

(a) is not an officer certified under the Merchant Shipping Act of the UK as
amended from time to time.

(b) is not the holder of a local certificate as defined in Part VII of the
Merchant Shipping Ordinance 1952; or

(c) has not entered into an agreement under the provisions of Part III of the
Merchant Shipping Ordinance;or

(d) he is engaged as a domestic servant

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