Employment Act 1955 (Act 265), Regulations and Orders & Selected Legislation [As At 1st January 2025]

The Employment Act 1955 (Act 265) is a piece of legislation that regulates employment in Malaysia. It is designed to protect the rights of employees and ensure fair treatment in the workplace. The Act covers a wide range of employment-related issues, including minimum wage, working hours, overtime pay, annual leave, sick leave, and termination of employment.

The Act is supported by several regulations and orders, which provide further guidance on how it should be implemented. These regulations and orders cover a range of topics, including employment of women, foreign workers, and young persons, as well as industrial relations and social security.

Some of the key provisions of the Employment Act 1955 (Act 265) are:

1. Minimum wage: The Act sets a minimum wage for employees in the private sector, which is currently set at RM1,200 per month in Peninsular Malaysia and RM1,100 per month in Sabah, Sarawak, and Labuan.

2. Working hours: The Act limits the maximum number of working hours per week to 48 hours, with a maximum of eight hours per day. Employees are entitled to at least one rest day per week.

3. Overtime pay: Employees who work more than the normal hours of work are entitled to overtime pay, which is set at a rate of 1.5 times their normal hourly rate.

4. Annual leave: Employees who have completed one year of service with their employer are entitled to paid annual leave, which ranges from eight to 16 days per year depending on their length of service.

5. Sick leave: Employees who are unable to work due to illness or injury are entitled to paid sick leave, which is set at 14 days per year.

6. Termination of employment: The Act provides for both the termination of employment by the employer and the resignation of the employee. Employers are required to provide notice of termination or payment in lieu of notice, while employees are required to give notice of resignation.

In addition to the Employment Act 1955 (Act 265), there are several other pieces of legislation that govern employment in Malaysia. These include:

1. Employment (Restriction) Act 1968 (Act 353): This Act regulates the employment of foreign workers in Malaysia.

2. Industrial Relations Act 1967 (Act 177): This Act provides for the regulation of industrial relations, including the resolution of disputes between employers and employees.

3. Employees' Social Security Act 1969 (Act 4): This Act provides for the social security of employees, including provisions for disability, invalidity, and survivors' benefits.

Overall, the Employment Act 1955 (Act 265) and the other relevant legislation provide a comprehensive framework for employment in Malaysia. Employers are required to comply with the provisions of these Acts to ensure fair treatment of their employees and avoid legal repercussions.