Employment (Amendment) 1

laws OF MALAYSIA
Act A1419

employment (Amendment) Act 2012

2 Laws of Malaysia Act A1419

Date of Royal Assent ... ... 30 January 2012

Date of publication in the

Gazette ... ... ... 9 February 2012

Publisher’s Copyright C
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 Employment (Amendment) 3

laws of malaysia

Act A1419

employment (Amendment) Act 2012

An Act to amend the Employment Act 1955.

[ ]

ENACTED by the Parliament of Malaysia as follows:

Short title and commencement

1. (1) This Act may be cited as the Employment (Amendment)

Act 2012.

(2) This Act comes into operation on a date to be appointed by

the Minister by notification in the Gazette, and the Minister may
appoint different dates for the coming into operation of different
provisions of this Act.

Amendment of section 2

2. The Employment Act 1955 [Act 265], which is referred

to as the “principal Act” in this Act, is amended in
subsection 2(1)—
(a) in the definition of “confinement”, by substituting for the
word “twenty-eight” the word “twenty-two”;
(b) in the definition of “constructional contractor”, by substituting
for the word “assigns” the word “assignees”;
4 Laws of Malaysia Act A1419

(c) by inserting after the definition of “contractor” the

following definition:
‘ “contractor for labour” means a person who
contracts with a principal, contractor or sub-contractor
to supply the labour required for the execution of the
whole or any part of any work which a contractor
or sub-contractor has contracted to carry out for a
principal or contractor, as the case may be;’;
(d) by inserting after the definition of “employee” the following
definition:
‘ “foreign domestic servant” means a domestic servant
who is not a citizen or a permanent resident;’;
(e) by inserting after the definition of “medical officer” the
following definition:
‘ “Minister” means the Minister charged with the
responsibility for human resources;’;
(f) by substituting for the definition of “part-time employee”
the following definition:
‘ “part-time employee” means a person included
in the First Schedule whose average hours of work
per week as agreed between him and his employer
are more than thirty per centum but do not exceed
seventy per centum of the normal hours of work per
week of a full-time employee employed in a similar
capacity in the same enterprise;’;
(g) by inserting after the definition of “registered medical
practitioner” the following definition:
‘ “sexual harassment” means any unwanted conduct
of a sexual nature, whether verbal, non-verbal, visual,
gestural or physical, directed at a person which is
offensive or humiliating or is a threat to his well-being,
arising out of and in the course of his employment;’;
and
(h) by deleting the definition of “sub-contractor for
labour”.
 Employment (Amendment) 5

Amendment of section 4

3. Section 4 of the principal Act is amended by substituting for

the words “under section 69 or section 73” the words “or decision
under section 69, 69b, 69c, 73 or subsection 81d(4)”.

Substitution of section 19

4. The principal Act is amended by substituting for section 19

the following section:

“Time of payment of wages

19. (1) Subject to subsection (2), every employer shall pay to

each of his employees not later than the seventh day after the
last day of any wage period the wages, less lawful deductions
earned by such employee during such wage period.

(2) Wages for work done on a rest day, gazetted public

holiday referred to in paragraphs 60d(1)(a) and (b) and overtime
referred to in section 60a shall be paid not later than the last
day of the next wage period.

(3) Notwithstanding subsections (1) and (2), if the Director

General is satisfied that payment within such time is not
reasonably practicable, he may, on the application of the
employer, extend the time of payment by such number of
days as he thinks fit.”.

Amendment of section 22

5. Section 22 of the principal Act is amended—

(a) by numbering the existing section as subsection (1);
(b) by deleting paragraph (c);
(c) by inserting after paragraph (da) the following
paragraphs:
“(db) to enable him to purchase a computer;
(dc) to enable him to pay for medical expenses for
himself or his immediate family members;
6 Laws of Malaysia Act A1419

(dd) to enable him to pay for daily expenses pending

receipt of any periodical payments for temporary
disablement under the Employees’ Social Security
Act 1969 [Act 4];
(de) to enable him to pay for educational expenses
for himself or his immediate family members;”;
and
(d) by inserting after paragraph (f) the following
subsection:

“(2) For the purposes of this section, “immediate

family members” means the employees’ parents, children,
siblings or any other person under the employee’s
guardianship.”.

Amendment of Part V

6. Part V of the principal Act is amended by substituting for the

heading “RELATING TO THE TRUCK SYSTEM” the heading
“SYSTEM OF PAYMENT OF WAGES”.

Substitution of section 25

7. The principal Act is amended by substituting for section 25

the following section:

“Wages to be paid through bank

25. (1) The entire amount of wages earned by, or payable

to, any employee in respect of any work done by him less
any lawful deductions, shall be actually paid to him through
payment into an account at a bank, finance company, financial
institution or other institutions licensed or established under
the Banking and Financial Institutions Act 1989 [Act 372]
or any other written law, in any part of Malaysia being an
account in the name of the employee or an account in the
name of the employee jointly with one or more other persons
as stipulated by the employee.

(2) Every employee shall be entitled to recover in the

courts so much of his wages, exclusive of sums lawfully
deducted under Part IV, as shall not have been actually paid
to him in accordance with subsection (1).”.
 Employment (Amendment) 7

Amendment of section 25a

8. The principal Act is amended by substituting for section 25a

the following section:

“Payment of wages other than through bank

25a. (1) Notwithstanding subsection 25(1), an employer may,

upon a written request of the employee, other than a domestic
servant, make payment of his employee’s wages—
(a) in legal tender; or
(b) by cheque made payable to or to the order of the
employee.

(2) In the case of a domestic servant, the employer shall,

upon the request of his domestic servant, obtain approval
from the Director General for the payment of wages of the
domestic servant to be paid in legal tender or by cheque.

(3) The request by the employee under subsections (1)

and (2) may be withdrawn by the employee at any time, by
notice in writing, to the employer.

(4) The notice referred to in subsection (3) shall take

effect at, but not before, the end of the period of four weeks
beginning with the day on which the notice is given.

(5) The request of the employee to the mode of payment of

wages under subsections (1) and (2) shall not be unreasonably
withheld by the employer.

(6) Any dispute arising out of the request by the employee

under subsections (1) and (2) shall be referred to the Director
General whose decision on the matter shall be final.

(7) Section 69 shall not apply in respect of any dispute

under subsection (6).”.

Amendment of section 31

9. Section 31 of the principal Act is amended by substituting

for the words “sub-contractor for labour”, wherever they may
appear, the words “contractor for labour”.
8 Laws of Malaysia Act A1419

Amendment of Part VII

10. Part VII of the principal Act is amended by substituting for

the heading “CONTRACTORS AND PRINCIPALS” the heading
“CONTRACTORS, PRINCIPALS AND CONTRACTORS FOR
LABOUR”.

New section 33a

11. The principal Act is amended by inserting after section 33

the following section:

“Information relating to supply of employees

33a. (1) A contractor for labour who intends to supply or

undertakes to supply any employee shall register with the
Director General in the prescribed form within fourteen days
before supplying the employee.

(2) If a contractor for labour referred to in subsection (1)

supplies any employee, he shall keep or maintain one or more
registers containing information regarding each employee
supplied by him and shall make such registers available for
inspection.

(3) A contractor for labour who—

(a) supplies his employee without registering with the
Director General as required under subsection (1);
or
(b) fails to keep or maintain any register, or make
available any register for inspection as required
under subsection (2),

commits an offence and shall, on conviction, be liable to a

fine not exceeding ten thousand ringgit.”.
 Employment (Amendment) 9

Amendment of section 37

12. Section 37 of the principal Act is amended—

(a) by substituting for paragraph (1)(a) the following
paragraph:
“ ( 1 ) ( a ) E v e r y f e m a l e e m p l o y e e s h a l l b e
entitled—
(i) to maternity leave for an eligible period in
respect of each confinement; and
(ii) subject to this Part, to receive from her employer
a maternity allowance to be calculated or
prescribed as provided in subsection (2) in
respect of the eligible period.”;
(b) in paragraph (1)(aa), by substituting for the words
“paragraph (a)” the words “subparagraph (a)(i)”;
(c) in paragraph (1)(c), by substituting for the words “paragraph
(a)” the words “subparagraph (a)(ii)”;
(d) by substituting for paragraph (1)(d) the following
paragraph:
“(d) For the purposes of this Part—
(i) “children” means all natural children, irrespective
of age; and
(ii) “eligible period” means a period of maternity leave
of not less than sixty consecutive days.”;
(e) by substituting for paragraph (2)(a) the following
paragraph:
“(2)(a) A female employee shall be entitled to
receive maternity allowance for the eligible period
from her employer if—
(i) she has been employed by the employer for a
period of, or periods amounting in the aggregate
to, not less than ninety days during the nine
months immediately before her confinement;
and
10 Laws of Malaysia Act A1419

(ii) she has been employed by the employer at any

time in the four months immediately before
her confinement;”; and
(f) by inserting after subsection (3) the following
subsection:
“(4) Any employer who terminates the service of
a female employee during the period in which she is
entitled to maternity leave commits an offence:

Provided that for the purpose of this section, such

termination shall not include termination on the ground
of closure of the employer’s business.”.

Amendment of section 40

13. Section 40 of the principal Act is amended by deleting

subsection (3).

Amendment of section 42

14. Subsection 42(2) of the principal Act is amended by

substituting for the words “a female employee is dismissed from
her employment” the words “the service of a female employee
is terminated”.

New section 44a

15. The principal Act is amended by inserting after section 44

the following section:

“Application of this Part irrespective of wages of female

employee

44a. Notwithstanding paragraph 1 of the First Schedule, this

Part extends to every female employee who is employed
under a contract of service irrespective of her wages.”.
 Employment (Amendment) 11

New sections 57a and 57b

16. The principal Act is amended by inserting after section 57

the following sections:

“Employment of foreign domestic servant

57 a . (1) An employer who employs a foreign domestic

servant shall, within thirty days of the employment, inform
the Director General of such employment in a manner as
may be determined by the Director General.

(2) An employer who contravenes subsection (1) commits

an offence and shall, on conviction, be liable to a fine not
exceeding ten thousand ringgit.

Duty to inform Director General of termination of service

of foreign domestic servant

57b. (1) If the service of a foreign domestic servant is

terminated—
(a) by the employer;
(b) by the foreign domestic servant;
(c) upon the expiry of the employment pass issued by
the Immigration Department of Malaysia to the
foreign domestic servant; or
(d) by the repatriation or deportation of the foreign
domestic servant,

the employer shall, within thirty days of the termination of

service, inform the Director General of the termination in a
manner as may be determined by the Director General.

(2) For the purpose of paragraph (1)(b), the termination

of service by a foreign domestic servant includes the act of
the foreign domestic servant absconding from his place of
employment.

(3) An employer who contravenes subsection (1) commits

an offence and shall, on conviction, be liable to a fine not
exceeding ten thousand ringgit.”.
12 Laws of Malaysia Act A1419

Amendment of section 59

17. Subsection 59(1) of the principal Act is amended in the

proviso by substituting for the words “Employees Social Security
Act 1969 [Act 4]” the words “Employees’ Social Security Act
1969”.

Amendment of section 60

18. Paragraph 60(3)(b) of the principal Act is amended by

inserting after the word “monthly” the words “or weekly”.

Amendment of section 60d

19. Section 60d of the principal Act is amended—

(a) in subsection (1)—
(i) by substituting for the words “a this” the words
“at his”;
(ii) in paragraph (a)—
(A) by substituting for the word “ten” the word
“eleven”;
(B) by substituting for the word “four” the word
“five”;
(C) in subparagraph (iii), by deleting the
word “and” appearing at the end of the
subparagraph; and
(D) by inserting after subparagraph (iv) the
following subparagraph:

“(v) Malaysia Day; and”;

(iii) by substituting for paragraph (b) the following

paragraph:

“(b) on any day appointed as a public holiday

for that particular year under section 8 of
the Holidays Act 1951 [Act 369]”; and
 Employment (Amendment) 13

(iv) by substituting for the proviso to subsection (1)

the following proviso:

“Provided that if any of the public holidays

referred to in paragraphs (a) and (b) falls
on—
(i) a rest day; or
(ii) any other public holiday referred to in
paragraphs (a) and (b),

the working day following immediately the rest

day or the other public holiday shall be a paid
holiday in substitution of the first mentioned
public holiday.”; and

(b) in paragraph (3)(aaa), by deleting the word “in” appearing

after the word “referred”.

Amendment of section 60i

20. Section 60i of the principal Act is amended—

(a) in subsection (1c), by inserting after the words “on a
daily” the words “or an hourly”; and
(b) in subsection (1d), by inserting after the words “on a
daily” the words “or an hourly”.

Amendment of section 60k

21. Section 60k of the principal Act is amended—

(a) in subsection (1), by substituting for the words “the nearest
office of the Director General with the particulars of the
foreign employee” the words “the Director General with
the particulars of the foreign employee by forwarding the
particulars to the nearest office of the Director General”;
and
(b) by inserting after subsection (2) the following
subsections:
14 Laws of Malaysia Act A1419

“(3) If the service of a foreign employee is

terminated—
(a) by the employer;
(b) by the foreign employee;
(c) upon the expiry of the employment pass issued
by the Immigration Department of Malaysia to
the foreign employee; or
(d) by the repatriation or deportation of the foreign
employee,

the employer shall, within thirty days of the termination

of service, inform the Director General of the termination
in a manner as may be determined by the Director
General.

(4) For the purpose of paragraph (3)(b), the termination

of service by a foreign employee includes the act of
the foreign employee absconding from his place of
employment.

(5) An employer who contravenes subsection (1)

commits an offence and shall, on conviction, be liable
to a fine not exceeding ten thousand ringgit.”.

Amendment of section 69

22. Section 69 of the principal Act is amended in paragraph (2)(ii)—

(a) by substituting for the words “sub-contractor for labour”,
wherever they may appear, the words “contractor for
labour”; and
(b) by substituting for the word “subcontractor” the word
“sub-contractor”.

Amendment of section 69b

23. Subsection 69 b (1) of the principal Act is amended by

substituting for the words “one thousand five hundred” the words
“two thousand”.
 Employment (Amendment) 15

Amendment of section 73

24. Subsection 73(1) of the principal Act is amended by substituting

for the words “sub-contractor for labour” and “subcontractor for
labour” the words “contractor for labour”.

Amendment of section 77

25. Subsection 77(1) of the principal Act is amended by substituting

for the words “or 73” the words “,73 or subsection 81d(4)”.

Amendment of section 79

26. Subsection 79(1) of the principal Act is amended by

substituting for the words “Electricity Act 1949 [Act 116]” the
words “Electricity Supply Act 1990 [Act 447]”.

New Part XVa

27. The principal Act is amended by inserting after Part XV the

following Part:

“Part XVa

SEXUAL HARASSMENT

Interpretation

81a. For the purposes of this Part, “complaint of sexual

harassment” means any complaint relating to sexual harassment
made—
(i) by an employee against another employee;
(ii) by an employee against any employer; or
(iii) by an employer against an employee.
16 Laws of Malaysia Act A1419

Inquiry into complaints of sexual harassment

81b. (1) Upon receipt of a complaint of sexual harassment,

an employer or any class of employers shall inquire into the
complaint in a manner prescribed by the Minister.

(2) Subject to subsection (3), where an employer refuses to

inquire into the complaint of sexual harassment as required
under subsection (1), he shall, as soon as practicable but in
any case not later than thirty days after the date of the receipt
of the complaint, inform the complainant of the refusal and
the reasons for the refusal in writing.

(3) Notwithstanding subsection (2), an employer may

refuse to inquire into any complaint of sexual harassment
as required under subsection (1), if—
(a) the complaint of sexual harassment has previously
been inquired into and no sexual harassment has
been proven; or
(b) the employer is of the opinion that the complaint of
sexual harassment is frivolous, vexatious or is not
made in good faith.

(4) Any complainant who is dissatisfied with the refusal

of the employer to inquire into his complaint of sexual
harassment, may refer the matter to the Director General.

(5) The Director General after reviewing the matter referred

to him under subsection (4)—
(a) if he thinks the matter should be inquired into, direct
the employer to conduct an inquiry; or
(b) if he agrees with the decision of the employer not to
conduct the inquiry, inform the person who referred
the matter to him that no further action will be
taken.

Findings of inquiry by employer

81 c . Where the employer conducts an inquiry into a

complaint of sexual harassment received under subsection
 Employment (Amendment) 17

81b(1) and the employer is satisfied that sexual harassment

is proven, the employer shall—
(a) in the case where the person against whom the
complaint of sexual harassment is made is an
employee, take disciplinary action which may include
the following:
(i) dismissing the employee without notice;
(ii) downgrading the employee; or
(iii) imposing any other lesser punishment as he
deems just and fit, and where the punishment
of suspension without wages is imposed,
it shall not exceed a period of two weeks;
and
(b) in the case where the person against whom the
complaint of sexual harassment is made is a person
other than an employee, recommend that the person
be brought before an appropriate disciplinary authority
to which the person is subject to.

Complaints of sexual harassment made to the Director

General

81d. (1) If a complaint of sexual harassment is made to

the Director General, the Director General shall assess the
complaint and may direct an employer to inquire into such
complaint.

(2) The employer shall inquire into the complaint of sexual

harassment when directed to do so under subsection (1) and
submit a report of the inquiry to the Director General within
thirty days from the date of such direction.

(3) If a complaint of sexual harassment received by the

Director General is made against an employer who is a
sole proprietor, the Director General shall inquire into such
complaint himself in a manner prescribed by the Minister.

(4) Upon inquiry by the Director General of the complaint

of sexual harassment under subsection (3), the Director
General shall decide if sexual harassment is proven or not
and such decision shall be informed to the complainant as
soon as practicable.
18 Laws of Malaysia Act A1419

(5) Notwithstanding subsection (3), the Director General

may refuse to inquire into any complaint of sexual harassment
received under subsection (3), if—
(a) the complaint of sexual harassment has previously
been inquired into by the Director General and no
sexual harassment has been proven; or
(b) the Director General is of the opinion that the complaint
of sexual harassment is frivolous, vexatious or is
not made in good faith.

(6) Where the Director General refuses to inquire into the

complaint of sexual harassment received under subsection
(3), he shall, as soon as practicable but in any case not later
than thirty days after the date of the receipt of the complaint,
inform the complainant of the refusal and the reasons for
the refusal in writing.

Effects of decisions of the Director General

81e. (1) Where the Director General decides under subsection

81d(4) that sexual harassment is proven, the complainant may
terminate his contract of service without notice.

(2) If the complainant terminates the contract of service

under subsection (1), the complainant is entitled to—
(a) wages as if the complainant has given the notice of
the termination of contract of service; and
(b) termination benefits and indemnity,

as provided for under the Act or the contract of service, as

the case may be.

Offence

81f. Any employer who fails—

(a) to inquire into complaints of sexual harassment under
subsection 81b(1);
(b) to inform the complainant of the refusal and the
reasons for the refusal as required under subsection
81b(2);
 Employment (Amendment) 19

(c) to inquire into complaints of sexual harassment when

directed to do so by the Director General under
paragraph 81b(5)(a) or subsection 81d(2); or
(d) to submit a report of inquiry into sexual harassment
to the Director General under subsection 81d(2);

commits an offence and shall, on conviction, be liable to a

fine not exceeding ten thousand ringgit.

Application of this Part irrespective of wages of

employee

81g. Notwithstanding paragraph 1 of the First Schedule, this

Part extends to every employee employed under a contract
of service irrespective of the wages of the employee.”.

Amendment of section 82

28. Subsection 82(1) of the principal Act is amended in paragraph (b)

of the proviso by deleting the word “male”.

Amendment of section 86

29. Section 86 of the principal Act is amended by substituting

for the words “section 69” the words “section 69, 69b, 69c or
subsection 81d(4)”.

New section 90a

30. The principal Act is amended by inserting after section 90

the following section:

“Protection of officers

90a. No action shall lie or be brought, instituted or maintained

in any court against—
(a) the Director General, Deputy Director General or
any other officer duly appointed under this Act for
20 Laws of Malaysia Act A1419

or on account of or in respect of any act ordered

or done for the purpose of carrying this Act into
effect; and
(b) any other person for or on account of or in respect
of any act done or purported to be done by him
under the order, direction or instruction of the
Director General, Deputy Director General or any
other officer duly appointed under this Act,

if the act was done in good faith and in a reasonable belief

that it was necessary for the purpose intended to be served
by it.”.

Amendment of section 101a

31. Section 101a of the principal Act is amended—

(a) in subsection (1), by substituting for the words “or a
Deputy Director General appointed under paragraph
3(2)(a)” the words “, Deputy Director General or any
officer authorized in writing by the Director General”;
(b) in subsection (2), by substituting for the words “or the
Deputy Director General”, wherever they may appear,
the words “, Deputy Director General or any officer
authorized in writing by the Director General”;
(c) in subsection (3), by substituting for the words “or the
Deputy Director General” the words “, Deputy Director
General or any officer authorized in writing by the
Director General”; and
(d) in subsection (5), by substituting for the words “or a
Deputy Director General” the words “, Deputy Director
General or any officer authorized in writing by the
Director General”.

New section 101b

32. The principal Act is amended by inserting after section 101a

the following section:
 Employment (Amendment) 21

“Offence by body corporate, etc.

101b. Where an offence under this Act has been committed
by a body corporate, partnership, society or trade union—
(a) in the case of a body corporate, any person who is
a director, manager, or other similar officer of the
body corporate at the time of the commission of
the offence;
(b) in the case of a partnership, every partner in the
partnership at the time of the commission of the
offence; and
(c) in the case of a society or trade union, every office-
bearer of the society or trade union at the time of
the commission of the offence,
shall be deemed to have committed the offence and may be
charged jointly or severally in the same proceedings as the
body corporate, partnership, society or trade union.”.

Amendment of section 102

33. Subsection 102(2) of the principal Act is amended—
(a) by substituting for paragraph (i) the following
paragraph:
“(i) prescribing fees to be paid for filing of claims
under section 69, 69b or 69c and for copies of
notes of evidence recorded under Parts XV and
XVa;”;
(b) in paragraph (j), by substituting for the full stop a
semicolon; and
(c) by inserting after paragraph (j) the following
paragraphs:
“(k) prescribing the forms of notice and returns of
particulars used under section 60k;
(l) prescribing the procedure to inquire into complaints
of sexual harassment under Part XVa;
(m) prescribing the terms and conditions of service of
a domestic servant.”.

DICETAK OLEH
PERCETAKAN NASIONAL MALAYSIA BERHAD,
KUALA LUMPUR
BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA