Understand The Law And Application Of Employment Act 1955 & Amendments

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The Employment Act 1955 is the principal legislation governing employment practice in Malaysia.  Since the majority of employees fall under the ambit of this Act, it is imperative that the employers understand and comply with the obligations mandated by the Act.


Learning Objective

This two days programme is crafted to provide participants with a thorough knowledge and understanding of the Act, complemented by ‘hands on’ practical guidelines and examples for worksite implementation.

  • This is to ensure competency in compliance to the requirements of the law and the contract of employment
  • To ensure the understanding of the rights and obligations of both employer and employee.
  • To avoid the costly consequences of non-compliance and promote harmony in the work environment.
  • To enable the organization to focus on the job of achieving growth, competitiveness and excellence with minimal hindrances and deviation of energies


Target Audience

  • HR Practitioners
  • Employers of Part-timers
  • Anyone who has a working knowledge of the Employment 1955.


Program Duration

2 Days


Program Content (9.00am -5.00pm)



  1. The Contract of Service
  • Contracts of Service are not unfettered.
  • Employer’s Rights and Employee’s Rights.
  • Employer and Employee cannot contract out of the Law.

 2. Types of Contracts of Service

  • Probationary, Permanent, Fixed-Term, Task Based and Part-time.
  • Implications for Employers.

3. Contract of Service and Contract for Service

  • Understanding the Difference.
  • Implications for the Employer through ‘Contract Tests’.
  • Contractors and Principals
  • Liability of Principals.


  • Understanding definitions and application of key operative terms in the Act
  • Wages, Day, Hours of Work, Normal Hours of Work.
  • Ordinary Rate of Pay, Average True Days Wages.


  1. Termination Simpliciter
  • Notice of Termination of Contract vide Section 12.
  • Termination for Wilful Breach under Section 13 (2).
  • Employer’s action for poor Performance and Incompetence.

2. Employee Misconduct

  • Action by Employer for misconduct under Section 14 (2).
  • Deemed Breach of Contract, vide application of Section 15 (2).




  1. Wages
  • Understanding the term Wages under Section 2 (1).
  • Application of term ‘wages’
  • Under the First Schedule.
  • Calculation of Ordinary Rate of Pay under Part 12.
  • Determining Unpaid Leave and Absence.

2. The Law on Payment of and Deductions from Wages

  • Part IX of the Act.
  • Maternity Leave.
  • Eligibility for Maternity Protection.


 Application of Benefits under Part 12 of the Act

  • Maximum hours of work and Rest Days
  • Annual Leave and Public Holidays
  • Medical Leave and Hospitalization
  • Employers Rights in managing the benefits


Employment (Amendment) Act 2012

  • Payment of Wages (s.25A)
  • Payment of Wages of Domestic Servants (new s.25B)
  • Contractor for Labor (new s.33A)
  • Maternity Protection (ss. 2, 40, 42)
  • Public Holidays (s.60D)
  • Employment of Foreign Employees (s.60K)
  • Sexual Harassment (new Part XVA)


Training Approach

This 2 days program provides an update on the impending amendments to the Employment Act that has already been tabled in Parliament.

Making the laws ‘come alive’ through examples, lively interaction, FAQ’s and topical Q&A sessions, with relevant case laws. Each participant would be given a copy of the Employment Act 1955 and comprehensive manual with explanatory notes and case law.