Introduction to Employment Act
The main legislation governing employment is the Employment Act 1955. The Employment Act came into force effective 1 June 1957 which applies only to West Malaysia. Effective 1 November 2000, it also applies to the Federal Territory of Labuan.
Who are Employees
Pursuant to First Schedule of Employment Act, employees are defined to:-
- Any person, irrespective of his occupation, who has entered into a contract of service with an employer under which the employee’s wages do not exceed RM 2,000 per month;
- Any employee whose wages exceed RM 2,000 per month is engaged in manual labor, whereby the working hours and overtime work depend on the terms agreed upon their employment contracts;
- A person engaged in operation or maintenance of mechanically propelled vehicle;
- Supervises or oversees other employees engaged in manual labor employed by the same employer; or
- Any person who is engaged as a domestic servant.