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Frequently Asked Questions

  1. My salary is more than RM2000 per month, am I protected under the Employment Act?
  2. A female employee had an abortion, is she entitled to maternity allowance?
  3. What is my annual leave entitlement?
  4. What is my sick leave entitlement?
  5. I have not received any confirmation letter, am I considered confirmed or not?
  6. I am a manager and my month salary is over RM5000, am I protected under the Employment Act? If not where can I seek redress?
  7. I am working in Kuala Lumpur, my employer wants to transfer to the Penang branch, can I refuse?
  8. Am I entitled to annual bonus?
  9. I am dismissed, what legal aids can I get and where can I get it?
  10. What is 'last in, first out"?
  11. Is an unmarried mother entitled to maternity allowance?
  12. Employee on probation, what is his position?
  13. I am employed in Sarawak, am I covered by the Employment Act 1955?

1. My salary is more than RM2000 per month, am I protected under the Employment Act?

If your occupation is non-manual, the Employment Act does not cover you. However if your salary is less than RM5000 and if your employer fails to provide you whatever stated in the contract of service, you can still make claim at the Labour Office.

If your occupation is manual one, you are covered by Employment Act irrespective how much you earn.

See First Schedule

2. A female employee had an abortion, is she entitled to maternity allowance?

If it is a still birth, the pregnancy must be least 22 weeks old. Yes if all other conditions have been fulfilled.

See Section 37

3. What is my annual leave entitlement?

  • Employed less than 2 years: Not less than 8 days per year
  • Employed between 2-5 years: Not less than 12 days per year
  • Employed for more than 5 years: Not less than 16 days per year

See Section 60E

4. What is my sick leave entitlement?

  • Employed less than 2 years: Not less than 14 days per year
  • Employed between 2-5 years: Not less than 18 days per year
  • Employed for more than 5 years: Not less than 22 days per year

If hospitalisation is required, than sick leave of up to 60 days shall be allowed.

See Section 60F

5. I have not received any confirmation letter, am I considered confirmed or not?

You are considered as not confirmed.

6. I am a manager and my month salary is over RM5000, am I protected under the Employment Act? If not where can I seek redress?

You are not covered by the Employment Act. But in the event of a dismissal which you consider as wrongful, you may seek redress at the Industrial Relations Department. You may make claim under Section 20 of the Industrial Relations Act.

7. I am working in Kuala Lumpur, my employer wants to transfer to the Penang branch, can I refuse?

Section 12(3)(e) of the Employment Act states:

"(3) Notwithstanding anything contained in subsection (2), where the termination of service of the employee is attributable wholly or mainly to the fact that:

(e) the employee has refused to accept his transfer to any other place of employment, unless his contract of service requires him to accept such transfer; or

the employee shall be entitled to, and the employer shall give to the employee, notice of termination of service,.........."

See Section 12

8. Am I entitled to annual bonus?

Yes if it is contractual (i.e. payment of bonus is stated in the contract of service). Otherwise payment of bonus is entirely at the discretion of the employer.

9. I am dismissed, what legal aids can I get and where can I get it?

If you are covered by the Employment Act and you are dismissed without notice, you may approach the Labour Department to claim indemnity. Alternatively you can make claim at the Industrial Relations Department for wrongful dismissal under Section 20 of the IR Act. There are various places where you can seek assistance if you have such problem i.e. (a) Labour Department (b) Industrial Relations Department (c) your trade union or (d) the Malaysian Trade Union Congress (MTUC).

10. What is 'last in, first out"?

In the event of an retrenchment exercise, the employer must follow the principle of "Last in First out" LIFO i.e. from the group of local workers working in a similar capacity, the employer has to retrench first the most recent staff who join the firm (the last to join, the first to go).

11. Is an unmarried mother entitled to maternity allowance?

Yes, it does not matter whether a female employee is married or otherwise as long as she eligible.

See Section 37

12. Employees on Probation.

The Employment Act does distinguish between a employee under probation and other employees. He enjoys all the same rights as any other confirmed employee and cannot be terminated without just cause. An employer cannot simply tell the probationer to go at the end of the probationary period by alleging unsatisfactory performance. The employee has to be given opportunity to improve himself and warning must be given if poor performance persists. Only after this that an employee can be terminated at the end of his of her probation period.

13. Employees in Sarawak.

No, you are not covered by the Employment Act 1955 but by the Sarawak Labour Ordinance.

See Sarawak Labour Ordinance