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Navigating Employment Law: What Employers Need to Know
  • Blog
  • | 5 May 2025

Navigating Employment Law: What Employers Need to Know

Understanding Employment Law in Malaysia is crucial for every employer operating in the country. Whether you are a new business owner or a well-established company, it is important to ensure that your practices align with Malaysian legal standards. From hiring the right employees to managing rights and responsibilities throughout their tenure, there are key legal requirements to follow. This guide covers everything employers need to know about Employment Law in Malaysia, including hiring, employee rights, and termination procedures.

Hiring Practices under Employment Law in Malaysia

When hiring employees in Malaysia, employers must adhere to Employment Law in Malaysia, which includes ensuring fairness in the hiring process. This involves providing clear and written employment contracts, detailing the terms of employment such as job responsibilities, salary, and working hours. The contract must comply with the Employment Law in Malaysia to protect both the employer and the employee.

It is also important to understand the importance of non-discriminatory hiring practices under the Employment Law in Malaysia. Employers are required to treat all job applicants equally, regardless of gender, ethnicity, age, or religion.

Understanding Employee Rights in Malaysia

One of the key aspects of Employment Law in Malaysia is ensuring that employees’ rights are protected. The law sets out various rights that employees are entitled to, including working hours, overtime pay, holidays, and maternity or paternity leave.

Employees in Malaysia also have the right to join a trade union and to engage in collective bargaining. Employers must respect these rights and cannot dismiss employees for engaging in such activities. It is also important for employers to comply with the statutory minimum wage in Malaysia, which is governed by Employment Law in Malaysia to ensure fair compensation.

Termination Procedures under Employment Law in Malaysia

Termination is another area governed by Employment Law in Malaysia. Whether an employer is terminating an employee for performance issues or other reasons, it is essential to follow the correct procedures.

The Employment Law in Malaysia requires that employers provide the appropriate notice period before termination. Alternatively, an employer may choose to pay in lieu of notice. In cases of wrongful termination, the employee may be entitled to compensation, as specified by Employment Law in Malaysia. Additionally, in cases of dismissal due to misconduct or redundancy, employers must follow specific guidelines outlined under Employment Law in Malaysia.

Key Considerations for Employers in Malaysia

Employers must familiarize themselves with the following key aspects of Employment Law in Malaysia to avoid legal issues:

  • Employment Contracts: Always provide written contracts that clearly define the terms of employment, as required by Employment Law in Malaysia.
  • Fair Treatment: Employees must be treated fairly and in accordance with Employment Law in Malaysia, especially in cases of discipline, promotion, and termination.
  • Health and Safety: Employers are responsible for ensuring the safety and health of employees, as prescribed by Employment Law in Malaysia.
  • Workplace Compliance: Ensure that all workplace practices align with local employment regulations, including minimum wage requirements, working hours, and overtime payments under Employment Law in Malaysia.

Conclusion

Understanding and complying with Employment Law in Malaysia is essential for businesses to thrive and avoid legal complications. Employers need to be aware of the legal implications of hiring, managing, and terminating employees. By ensuring that your practices are aligned with Employment Law in Malaysia, you protect both your business and your employees.

At TSL Legal, we specialize in offering comprehensive legal guidance to employers navigating the complexities of Employment Law in Malaysia. Whether you are dealing with a hiring dispute, employee rights issue, or termination case, our team of experienced legal professionals is here to assist you. Get in touch with us today for expert advice tailored to your business needs.

Contact us today for a consultation on Employment Law in Malaysia and ensure your business remains compliant with all legal requirements.

FAQs

What is the basic Employment Law in Malaysia?

The basic Employment Law in Malaysia is governed by the Employment Act 1955, which sets out the minimum terms and conditions of employment, including matters such as wages, working hours, leave, and termination.

What is the employment contract Act in Malaysia?

In Malaysia, the Employment Contract Act is part of the Employment Act 1955, which requires employers to provide written contracts that clearly outline the terms and conditions of employment for employees.

What are the rights of workers in Malaysia?

Workers in Malaysia have the right to fair treatment under Employment Law in Malaysia, including rights to fair wages, rest days, overtime pay, maternity leave, and protection against unfair dismissal.

What is the Labour policy in Malaysia?

The Labour policy in Malaysia aims to balance the interests of both employers and employees, ensuring fair employment practices, protecting workers’ rights, and promoting industrial harmony under the Employment Law in Malaysia.

Can an employer terminate an employee without notice in Malaysia?

An employer in Malaysia can terminate an employee without notice in cases of serious misconduct, as specified by the Employment Law in Malaysia, but otherwise, they must follow the appropriate notice period or provide pay in lieu of notice.

When must salary be paid in Malaysia?

Under Employment Law in Malaysia, salaries must be paid at least once a month, and employers are required to pay wages by the agreed date, usually within 7 days after the end of the wage period.

Can I resign in 24 hours in Malaysia?

In Malaysia, resignation with 24 hours’ notice is generally not valid unless specifically stated in the employment contract; the employee must adhere to the notice period stipulated in the contract or provide payment in lieu of notice.

How much is the compensation for termination of employment in Malaysia?

Compensation for termination of employment in Malaysia depends on the terms of the employment contract and the reason for termination. In cases of unlawful dismissal, employees may be entitled to compensation, including unpaid wages and severance pay, as outlined by Employment Law in Malaysia.

Disclaimer: This article is intended to provide general information only and does not constitute legal advice. It should not be used as a substitute for professional legal consultation. We recommend seeking legal advice before making any decisions based on the information in this article. TSL Malaysia fully disclaims any responsibility for any loss or damage that may result from reliance on this article.

40. Validity of Wills Under Thai
  • Legal Update
  • | 15 October 2025

Landmark Supreme Court Judgment On Formal Validity Of Wills Under Thai Law

A. Introduction The organization and administration of a person’s estate after their death, legally known as the making of a (...)

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