Malaysia Employment Act 1955 Retrenchment
The employment act 1955 ea and the employment termination and lay off benefits regulations 1980 regulations govern the retrenchment exercise of employees who earn not more than rm2 000 monthly and manual workers irrespective of the amount of their monthly salaries.
Malaysia employment act 1955 retrenchment. Short title and application 1 this act may be cited as the employment act 1955. The employment act 1955 and the employment termination and lay off benefits regulations 1980 govern the retrenchment procedures of employees who earn not more than rm2 000 monthly and manual workers irrespective of the number of their monthly salaries. If the affected employee is within the employment act 1955 the employment termination lay off benefits regulations 1980 would apply. There has been a wave of retrenchments in malaysia which started last year and looks to continue through 2016.
Employment within one month of the date of award without loss of wages allowances bonus seniority service or benefits whatsoever. To be entitled to the termination benefits the employment of the affected employee has to be terminated for any reason other than attainment of the age of retirement on grounds of misconduct or on a voluntary basis by the employee. In the absence of a valid justification for the retrenchment exercise the termination may amount to dismissal without just cause and excuse entitling employees to remedies such as backwages reinstatement and or compensation. The paper is based on the analysis of the relevant statues on retrenchment such the employment act 1955 the industrial relations act 1967 the employment termination and lay off benefits.
2 this act shall apply to west malaysia only. Malaysia s human resources minister says that his ministry expects retrenchments to continue into 2017. Retrenchment procedures a providing the employee notice. Can employees challenge a retrenchment.
In companies with foreign workers employed in a similar capacity as local employees section 60n of the employment act 1955. According to the malaysian employers federation mef more than 20 000 employees were retrenched in 2015 as at september 2015. In the absence of a valid justification for the retrenchment exercise the termination may amount to dismissal without just cause and excuse entitling employees to remedies such as backwages reinstatement and or compensation. Interpretation 1 in this act unless the context otherwise requires.
1st june 1957 part i preliminary. Can employees challenge a retrenchment. An act relating to employment. Law governing redundancy in the malaysian context section 12 3 of the employment act 1955 provides that the employees may be terminated.