Labour Law Malaysia Termination Compensation

Over the years there has been a heightened awareness about employee rights in malaysia.

Labour law malaysia termination compensation. The concept of unfair dismissal or unlawful termination is not new in malaysia. Federal territory of labuan 1 november 2000 p u. A 400 2000 p art i preliminary short title and application 1. Interpretation 1 in this act unless the context otherwise requires.

Employees whose salary do not exceed rm2 000 a month or who are engaged in manual labour. An act relating to employment. Nevertheless there are many misconceptions that have not been corrected. Termination of employment either you or your employer can end an employment relationship by terminating the contract of service.

Short title and application 1 this act may be cited as the employment act 1955. The relevant provisions are found in regulations 3 4 and 6 of the employment termination and lay off benefits regulations 1990. 1 any sum due by way of termination or lay off benefits payment to a deceased employee shall be treated as if it were workmen s compensation payment under the workmen s compensation act 1952 and shall be deposited by his employer with the director general in his capacity as the commissioner under the said act. Overview of the termination compensation law.

These provisions are only applicable to employees coming within the purview of the employment act 1955 eg. Termination compensation is a matter that could not be taken lightly especially for the employee. 1st june 1957 part i preliminary. From the definition redundancy situation happens due to several reasons such as corporate restructuring a decrease in production mergers changes in technology acquisitions and others.

2 this act shall apply to west malaysia only. Unfair dismissal of employee or termination of employment in malaysia. According to department of labour of peninsular malaysia termination of employment means cessation of service due to company closure and workers redundancy. Peninsular malaysia 1 june 1957 l n.

1 any sum due by way of termination or lay off benefits payment to a deceased employee shall be treated as if it were workmen s compensation payment under the workmen s compensation act 1952 and shall be deposited by his employer with the director general in his capacity as the commissioner under the said act. 1 this act may be cited as the employment act 1955. No wonder if the government puts concern on this matter by issuing laws that regulate the right of the employee to receive the compensation as a reward for their service to the company.