Chapter 2: Legal Aspect in HRM 2020

Workers’ Minimum Standards of Housing and Amenities Act 1990

to monitor and control the minimum quality of housing facilities and other social amenities provided by the employer to the employees

Only protects employees who work in the farming (i.e., agricultural land of more than 20 hectares) and mining sectors except those located within the area administered by a City Hall or Federal Territory

Pembangunan Sumber Manusia Berhad Act 2001

to encourage employers to conduct training for their workers so as to upgrade their skills and abilities through the imposition and collection of a human resource development levy.

The human resources development levy is the mandatory levy payment imposed by the PSMB ACT 2001

Workmen’s Compensation Act 1952

Effective from 1 July 1992

covers foreign workers and all manual workers irrespective of the wage

provides for the payment of compensation to the employee’s dependants if the employee dies in the event of a fatal accident or contracting an occupational disease.

Children and Young Persons (Employment) Act 1966

Effective from 1 March 2011

child is defined as a person who has not completed 15 years of age

a young person is referred to as a person who is 15 years of age and above, but has not completed 18 years of age

Minimum Retirement Age Act 2012

Effective from 1 July 2013

minimum retirement age of an employee as 60 years.

Employment Act 1955

administered and enforced by the Department of Labour Peninsular Malaysia

minimum standards for setting terms and conditions of employment

to set minimum labour standards for employees and to protect them from exploitation

Employees Provident Fund Act 1991

to ensure that employees have funds available after their retirement

covers three categories of employees

Employees Social Security Act 1969

provide protection to employees who may be involved in an accident at work or who contract some occupational disease

Act only covers local employees who work at the private sector earning monthly wages of RM3,000 or less

Occupational Safety and Health Act 1994

provides the legislative framework to secure the safety and health among all Malaysian workforces and to protect others against risks to safety and health in connection with the activities of workers at work

to promote safety and health awareness, and establish effective safety and health performance through self-regulation schemes designed to suit the needs of the particular organisation

Trade Union Act 1959

Every trade union must apply to be registered and recognised under the Trade Union Act 1959

stipulated that all employees who are

Main Areas Covered by the Employment Act 1955

Contract of Service

Payment of Wages

Employment of Women

Working Hours and Holiday

Registers, Returns, Complaints, and Inquiries

Minimum Wages Order 2020

Industrial Relations Act 1967