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LABOUR LAW

THE RIGHTS OF
EMPLOYEES:
WORKING HOUR

LEARNING OUTCOME

Explain the terms and


conditions
in
the
contract of employment
in relation to working
hours.(C2)

REST DAY
The employment Act requires all employees to be permitted one

rest day per week.


When a daily rated employee agrees to work on his rest day,

i.e., if he works less than half his normal hours of work, he is to


be paid one full days wages and if he works between half the
normal hours and the full hours he is entitled to two days wages.
A monthly rated employee who works on a rest day will not

only receive his normal monthly wages, but he is entitled to an


extra half days wages for up to a half-days work and full days
wages if he works between half the normal hours and a full day.
If an employee works overtime on a rest day, he will be paid at
the rate or two times his hourly rate of pay of pay for each hour
of overtime.

MAXIMUM WORKING HOUR


According to the Act, the maximum working hour

per day that can be required of an employee are


eight. With overtime, this can be increased to 12
(overtime is voluntarily in most circumstances).
If the organisation does not require the employee to

work six full days per week, then the daily working
hours can be increased to nine.

Usually any lunch and tea breaks are not considered

working hours unless employees are not free to leave


the premises. In this situation, working hours will be
inclusive of such breaks.
The Director-General of Labour has the authority to

exempt any group of employees from this provisions


on working hours. A number of organisations have
been granted such exemptions; especially those in
the tourism industry.

OVERTIME
Most employees have the right to reject any request

to do overtime unless they have agreed in the


contract of employment to work overtime when
requested to do so.
If the employees work in any of essential services,

which includes banking, transport, electricity, water


and a gas supply they can be order to work overtime.

If not working in essential services, may also be

ordered to work overtime in certain limited


circumstances. For example; where there has been
an accident at the place of work, if there is urgent
maintenance work to be done, or there has been
interruption of work which is impossible to foresee,
perhaps caused by an electricity breakdown.

Currently, the maximum number of hours

of overtime that can be worked is 104


hours per month. Any employer who
allows an employee to work overtime than
permitted by the law commits an offence.

Rates of pay for overtime work for monthly

rated workers are 1.5 times the hourly rate


of pay.

PUBLIC HOLIDAYS
Employment Act only entitles workers to 10 public

holidays per year whereas Malaysia has 16 or 17 such


holidays.
Four of the 10 public holidays are fixed which are the

labour or Worker Day, Independence Day, the


birthday of YDPA and the birthday of state ruler. The
employers can choose six more days for the
employees.
If an employer wishes to offer more public holidays
to employees, of course he may do so.

If a worker is requested to work on public holiday, he must

be paid at premium rates i.e two days extra wages over his
pay even if he works less than his normal daily hours.
Overtime on a public holiday is paid at the rate of three
times the workers hourly rate of pay.
When a public holiday falls on a workers rest day, the next

day will automatically be considered his public holiday. By


mutual agreement between employer and employee, a
public holiday to which the employee is entitled can be
substituted with any other day.

ANNUAL LEAVE
Employees are only entitled to annual leave once

they complete a year of service.


The duration of annual leave granted depends on

their length of service.


Workers with less than two years service are entitled

to eight days per year, those with 2 5 years can take


12 days per year. Those work more than 5 years can
get 16 days leave.

The Employment Act does not;


a) Provide for the procedure to apply for the leave;
b) Emergency leave is not provided.
c) The practice of carrying forward the unused leave.

Any employee who absents himself without


permission, commit misconduct.
In a situation if the employee has applied for the leave
and then being rejected, at the end of the year the
employer is required to pay the employee one days
pay for every day due to him.

SICK LEAVE
Must be examined and certified by unfit by the

medical doctor appointed by the employer (panel


doctor). Exception in the case of emergency.
The employer is required to pay for the medical bills.
Sick leave entitlement depends on the length of

service.
less than 2 years- 14 sick leave per year.
2 5 - 18 days
more than 5 years 22 days.

When hospitalisation is required, the employee is

entitled to up to 60 days of paid medical leave per


year inclusive of any sick leave entitlement.

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