Employee Relations

1. What is the best action when an employee who claims themselves is unfairly dismissal?
  Under Section 20,  Malaysian Industrial Relations Act 1967 ("IRA 1967") provides that an employee who claims he has been unfairly dismissed may make a representation to the Director General for Industrial Relations ("Representation") within 60 days from the date of his dismissal.
2. How long employers are required to report to the nearest Labour Department before any action on ‘retrenchment' can be taken?
  Employers are required to report 30 days before retrenchment.
3. If an employee's sick leave entitlement is 14 days, what would be his hospitalisation leave entitlement?

Sick Leave + Hospitalisation Leave  =  60 days

Hospitalisation Leave                        =  0 days - 14 days

                                                           =  46 days


However, any unused sick leave can be added to hospitalisation leave, but unused hospitalisation leave cannot be added to the sick leave entitlement.

4. Does an employee may take unpaid sick leave since he already fully utilised sick leave entitlement and annual leave?
  Yes. An employee may take unpaid sick leave if he has fully utilised his sick leave entitlement and annual leave.
5. What is the rate of calculation for Maternity Allowance?
  • The rate of calculation of Maternity Allowance is based on ORP :

Monthly Wages / 26 X 60 Days; OR                  

  • Use fixed monthly wages as payment in lieu of allowance for full employees
6. What will happen to an employee who is on paid annual leave but suddenly fall sick and received sick leave?
An employee who is on paid annual leave becomes entitled to sick leave while on such annual leave, the employee shall be granted  the sick leave as the case may be, and the annual leave shall be deemed to have not been taken in respect of the days for which sick leave is granted.
7. Employee submit resignation letter and directly quit from job because he will start working with other company without  providing one month notice, does the company have the right to deduct the wages because in the offer letter stated one month notice or pay in lieu?
Yes. It shall be lawful for an employer to make the deductions for the indemnity due to the employer by the employee under Subsection 13 (1) which is "Either party to a contract  of service may terminate such contract of service without notice or, if notice has already been given in accordance with Section 12, without waiting for the expiry of that notice, by paying to the other party an indemnity of a sum equal to the amount of wages which would have accrued to the employee during the term of such notice or during the unexpired term of such notice.