The purpose of the Employment Act 1955 is to regulate the terms and conditions of employment in Malaysia. Here is an explanation of Sections 1 to 7 of the Act:
Applicability of the Act:
- It applies to Peninsular Malaysia and the Federal Territory of Labuan (Section 1(2)).
Section 1 – Short title and application
- Cites the short title of the Act – Employment Act 1955.
- States that the Act applies to Peninsular Malaysia and the Federal Territory of Labuan.
Section 2 – Interpretation
- Provides definitions of terms used in the Act e.g. contract of service, wages, employee, etc.
Section 2A – Minister may prohibit employment other than under contract service
- Empowers the Minister to prohibit contracting work without an employment contract and deem such workers to be employees.
Section 2B – General power to exempt or exclude
- Allows the Minister to exempt any person or class of persons from the Act.
Section 3 – Appointment of officers
- Provides for the appointment of the Director General of Labour and other officers to implement the Act.
Section 4 – Appeals
- Allows appeals to the Director General against orders of officers appointed under Section 3(2).
Section 5 – Effect on Act of other written laws
- States that the Act does not exempt employers and employees from obligations under other laws.
Section 6 – Saving of existing contracts
- Valid employment contracts entered before the commencement of the Act shall continue to be valid.
Section 7 – More favourable conditions to prevail
- If the Act provides more favourable conditions to an employee than the contract of service, the Act’s provisions shall prevail.
Section 7 of the Employment Act 1955 states that if any term or condition of the employment contract provides less favourable conditions to the employee compared to the provisions under the Employment Act, then those contract terms shall be void and the provisions of the Employment Act shall prevail and be substituted.
In other words, the Employment Act sets the minimum standards and terms of employment that must be provided to employees.
If the employment contract contains lower standards or benefits than what is guaranteed under the Employment Act, then those inferior contract terms are invalid and the employer must provide the employee with the superior benefits and standards in the Act.
Some examples:
Annual leave
- Employment Act: Provides for paid annual leave of 8-16 days depending on length of service.
- Contract: States employee is entitled to only 5 days annual leave.
- Application of Section 7: The contract term is less favourable than the minimum annual leave in the Act.
- Thus it is void and the employee will be entitled to the statutory leave under the Employment Act.
Overtime pay
- Employment Act: Requires overtime pay at a minimum of 1.5 times the hourly rate for any overtime work carried out in excess of the normal hours of work, irrespective of the basis on which his rate of pay is fixed.
- Contract: Says overtime pay will be at 1.2 times the hourly rate.
- Application of Section 7: The inferior overtime rate in the contract is void.
- Employees will get overtime pay at 1.5 times the hourly rate as provided in the Act.
Rest day
- Employment Act: Requires one whole rest day per week.
- Contract: No provision for a rest day.
- Application of Section 7: The less favourable contract term is void and the employee shall be entitled to a mandatory weekly rest day.
Keynotes for businesses:
- Cannot provide lower standards than the Employment Act baseline in employment contracts.
- Must be aware of and comply with minimum benefits and standards in the Act.
- If the contract offers less favourable conditions, still needs to provide conditions in the Act.
- Need to review employment contracts to ensure compliance with the Act.
《1955年雇佣法令》第7条规定，如果雇佣合同中的任何条款或条件比在《雇佣法令》下所规定较不利或更差（对雇员不利），那么这些合同条款应当无效，同时《雇佣法令》的规定将优先适用，并替代之。
换句话说，《雇佣法令》规定了雇主必须向雇员提供的最低标准和雇佣条件。
如果雇佣合同的标准或福利低于《雇佣法令》所保障的，那么这些较差的合同条款是无效的，雇主必须提供员工《雇佣法令》所规定的更优厚的福利和标准。
一些例子：
年假
- 《雇佣法令》：根据服务年限，雇佣法令阐明雇主必须要提供8-16天带薪年假。
- 合同：规定员工只有5天年假。
- 第7条规定的适用：合同条款低于《雇佣法令》的最低年假标准，因此无效，员工将有权获得《雇佣法令》所规定的法定年假。
加班费
- 《雇佣法令》： 要求对超出正常工作时间的任何加班工作，支付至少为小时工资 1.5 倍的加班费，而不论其工资标准是如何确定的。
- 合同：称加班费将按每小时1.2倍支付。
- 第7条规定的适用：合同中较低的加班费率（即：1.2）无效。
- 雇主需要按照《雇佣法令》规定的每小时1.5倍薪资，支付加班费给员工。
休息日
《雇佣法令》：每周要求提供最少一整天的休息日（也就是最少提供一天的休息日）。
合同：员工看了后，发现里面没有规定休息日。
第7条规定的适用：较不利的合同条款无效，员工应享有强制性的每周休息日。
企业注意事项：
雇佣合同中不能提供低于《雇佣法令》基本标准的条件。
必须了解并遵守《雇佣法令》中的最低福利和标准。
如果合同提供较不利的条件，最终雇主还是需按照《雇佣法令》中的条件提供给员工。
因此，雇主需要审查雇佣合同，以确保符合《雇佣法令》的要求。
Disclaimer:
The articles, templates, and other materials on our website are provided only for your reference.
While we strive to ensure the information presented is current and accurate, we cannot promise the website or its content, including any related graphics. Consequently, any reliance on this information is entirely at your own risk.
If you intend to use the content of our videos and publications as a reference, we recommend that you take the following steps:
- Verify that the information provided is current, accurate, and complete.
- Seek additional professional opinions, as the scope and extent of each issue may be unique.
免责声明：
我们网站上的文章、模板和其他材料只供参考。
虽然我们努力确保所提供的信息是最新和准确的，但我们不能保证网站或其内容，包括任何相关图形的完整性、可靠性、适用性或可用性。因此，您需要承担使用这些信息所带来的风险。
如果你打算使用我们的视频和出版物的内容作为参考，我们建议你采取以下步骤：
- 核实所提供的信息是最新的、准确的和完整的。
- 寻求额外的专业意见，因为每个问题的范围和程度，可能是独特的。
Keep in touch with us so that you can receive timely updates
请与我们保持联系，以获得即时更新。
1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍
- https://www.facebook.com/YourHRAdvisory/?ref=pages_you_manage
- https://www.facebook.com/YourAuditor/?ref=pages_you_manage
4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy
6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/
7. Threads ✍ https://www.threads.net/@ccs_your_auditor
8. 小红书 ID ✍ 2855859831
