Generally, employees earning wages of RM2,000 per month and below are covered by the EA and all of its provision.Īn employee earning above RM2,000 per month may still fall within the definition of ‘ employee‘ under the EA if the employee falls under category i, ii, iii, iv or v above. The right side is the exclusion clause which means that even if they are covered, there are certain provisions in the EA which are not applicable to them. The left side of the table shows who are covered by the act.
(b) in respect of whom the Minister makes an order under subsection (3) or section 2A Now refer to the table below, where we have simplified the First Schedule for your ease of reference: Right click and ‘open the image on new tab’ to enlarge. (a) included in any category in the First Schedule to the extent specified therein or “ employee” means any person or class of persons – We shall deal with the Ordinance later, when we publish an article on them.Īs for the EA, it is crucial to check Section 2 of the EA which defines the word ‘ employee‘. This is very important as the Employment Act 1955 and the Labour Ordinance of Sabah & Sarawak apply only to certain categories of employees. This Act shall apply to West Malaysia and the Federal Territories (including FT Labuan) only.
It must be noted here that Employment Act 1955 applies only to West Malaysia and Federal Territories, including Labuan.Įmployers and Employees in Sabah & Sarawak are governed by different set of laws, namely Sabah Labour Ordinance and The Labour Ordinance (Sarawak Cap 76). All provisions in the contract that does not follow the minimum standard will be automatically replaced by the minimum standards set by the EA. If an employer and employee agree on terms and conditions which are BELOW the minimum standard set out in the EA, then such agreement is INVALID. set out the minimum terms and conditions that employer and employee can agree upon and.legislates various terms and conditions of employment.regulates relations between employers and employees.The Importance of the Employment Act 1955 The Employment Act 1955: * This article was last updated on 29th June 2017. However, since the US had pulled out from the treaty, all have been postponed until now. NOTE: It was set for another major amendment in 2017 in line with Malaysia’s signing of the TPPA treaty in 2015. Kindly note that the EA only applies to employees that falls within the scope of the First Schedule. It has gone through several amendments since, most notably in 2012, when extensive modifications were made to EA to make it up-to-date with current conditions and to provide wider protection to the employees. The EA came into force on 1st of June 1957. The MAIN legislation governing employment in Malaysia is The Employment Act 1955 (hereinafter referred to as EA).
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