8.2.9 : Employment practice labour rights
Law of Malaysia
The Malaysian Employment Act 1955 (Akta 265), as updated, establishes a comprehensive statutory framework for labour rights that supports inclusion, the right to association, and critical protection for vulnerable groups.
This legislative commitment is demonstrated through three core provisions:
- Freedom of Association: The Act explicitly safeguards the foundational right to collectively organize by stipulating that contracts of service shall not restrict the rights of employees to join, participate in or organize trade unions (Part II, Section 8). This prevents employers from undermining the principle of collective bargaining through individual employment terms.
- Protection for Women: The law enforces gender equality and health by guaranteeing maternity protection under Part IX. Key rights include an eligible period of paid maternity leave and a severe restriction on the termination of a pregnant female employee (Section 41A). Termination is only permissible under specific grounds, such as misconduct or the closure of the employer’s business.
- Inclusion of International Staff (Foreign Employees) and Anti-Forced Labour: Recognizing international staff (defined as non-citizens ), Part XIIB subjects their employment to Director General approval, extending the Act's protections to this group. Most crucially, the Act criminalizes the most severe violation of labour rights: forced labour. Section 90B makes it an offense for an employer to threaten, deceive, or force an employee to work while preventing their free movement.
By codifying these non-discriminatory statutory rights—from the right to unionize to the security of employment for women and the prohibition of forced labour for all, including foreign workers—the Employment Act 1955 mandates fundamental and non-derogable standards for ethical employment practices in Malaysia
Source :
https://jtksm.mohr.gov.my/sites/default/files/2023-11/Akta%20Kerja%201955%20%28Akta%20265%29.pdf