Key Facts: Malaysian Employment Law - Probationary Periods

Employers can impose a probationary period of up to 6 months for new employees. During this time, the employment can be terminated with just 1 day's notice by either party, without having to provide a reason.

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Key Facts: Malaysian Employment Law - Minimum Wage Regulations

The Minimum Wages Order sets the minimum wage for employees, which varies by region and sector. Employers must comply with these regulations to ensure fair compensation for workers.

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Key Facts: Malaysian Employment Law - Working Hours and Overtime

Regular working hours are capped at eight hours a day and 45 hours a week. Overtime pay is mandated at 1.5 times the hourly wage for normal working days, with higher rates applicable for work on rest days and public holidays.

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Key Facts: Malaysian Employment Law - Personal Data Protection

The Personal Data Protection Act mandates that employers must obtain consent from employees before collecting or disclosing personal data. Employees have the right to access and correct their personal information held by employers.

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Key Facts: Malaysian Employment Law - Non-Compete Clauses

Non-compete clauses are generally unenforceable in Malaysia, as the Contracts Act 1950 voids agreements that restrict lawful professions, allowing employees to freely join competitors.

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Key Facts: Malaysian Employment Law - Union Rights

Employees have the right to form and join trade unions under the Trade Unions Act 1959. This right cannot be restricted by any contract, and unions can provide collective bargaining power and representation in disputes.

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Key Facts: Malaysian Employment Law - Severance Pay

In retrenchment, employees receive severance pay based on service length: 10 days' salary per year for under two years, and 20 days for five years or more.

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Key Facts: Malaysian Employment Law - Leave Entitlements

The EA specifies various types of leave, including annual leave, sick leave, and maternity leave. Employees are entitled to a minimum of 8 to 16 days of annual leave depending on their length of service.

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Key Facts: Malaysian Employment Law - Written Contracts Required

Any employment lasting more than one month must be formalized through a written contract. This contract should detail the nature of work, compensation, benefits, and working hours.

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Key Facts: Malaysian Employment Law - Employment Act 1955

The primary legislation governing employment in Malaysia is the Employment Act (EA) 1955. It outlines minimum standards for working conditions, including wages, leave entitlements, and termination procedures.

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