1. Describe FOUR (4) method for terminating a contract of service as stipulated in the Employment Act, 1955.

marks) (10

Introduction In Malaysia, termination of employment is regulated principally by the Employment Act 1955. In Malaysia, the employer-employee relationship also regulated based on Employment Act. Method for terminating employee by employer are:-

(1) Normal termination This termination took place when a contract of service is expired or even when the job assigned is complete, example retirement. In Malaysia context, the retirement age, in general is set at 55 years, 58 years and 60 years of ages. Regelation 4(1) (a) of the Employment states that an employee would not be entitled to termination benefits if his contract of service is terminated by the employer, upon the employee attaining the age of retirement if the contract of service contains a stipulation in that behalf. Thus, where the contract has not stipulated an age of retirement, it would appear that the contract can work regardless of age and if he is terminated for reasons other than misconduct, he would be entitled to be paid termination benefits or seek redress provided for wrongful dismissal. The employee could be medically boarded out if he is medically unfit to work but he cannot be coerced to undergo a medical examination.

Retirement are not considered dismissals for the purposes of statutory redundancy benefits (Regulation 4(1) (a), Employment (Termination and Lay Off Benefits) Regulations 1980)

(2) Termination with notice This type of termination requires an employee to give notice to his/her employer that states his/her intention to terminate his/her service. The length or the notice to be given must be stated in the contract of service. Either the employee or employer can terminate the contract of service by

giving the other the contractual notice provided for in the employment contract, or pay salary in lieu thereof. Contract of service or collective agreement normally specify the length of notice of termination applicable to either party. If there is on such specification, Section 12(2) EA provides that the length of notice should be as follows:(a) Four weeks notice if the employee has worked for less than two years, (b) Six weeks notice if the employee has worked for two ye ars or more but less than five years. (c) Eight weeks notice if the employee has worked for five years or more. Where the notice period is not specified by the contract of service or collective agreement, and the EA does not apply (e.g. in the case of managers or executives) then the law will imply a reasonable notice period. Generally, the more senior the position the longer is the required notice of period.

(3) Termination without notice An employee also can terminate a contract without giving notice or if the notice is given without waiting for the expire date by paying to the other party an indemnity of a sum equal to the amount of wages which would have accrued to the employee during the term of such notice or during the unexpired term of such notice. This type of termination was stated at Section 13 under Employment Act 1995.

(4) Termination for special reason Employment Act, 1955 under Section 14, also spell out an employment may dismiss an employee without notice for misconduct after due inquiry depend on the seriousness of the misconduct. Due inquiry means a proper inquiry i.e. domestic inquiry that is held in conformity with the principle or the rules of the natural justice.

Type of misconduct refer to the refusal of employee to follow order, involve in gambling, disobedience, fraud, threat, assault & fighting & sexual

harassment, drug, alcohol abuse etc. beside that an employee also may terminate his/her contract of service if his/her dependents are immediately threatened by danger through violence or disease.

Conclusion The employer and employee must know their right and ability before take action for termination or lay-off the job. Besides, the Employment Act is purpose to provide minimum benefit to worker, established the right of employee and employer and also prescribers when and how contract of service may be terminated.

(2) Explain THREE (3) parties or participants in Malaysia Industrial Relation System. (10 marks) Introduction Industrial relations are the interaction between employers and employee within an organizational setting. Industrial relations cover all aspects of the employment relationship, including employee relation, union-management relations and human resources management. In Malaysia Industrial Relation system, the three parties involve are:(1) Employees and their organization Employees or workers wan improved terms and conditions of employment. They want an avenue to resolve their grievances as well as be heard in management decision involving their work. Employees may join or form workers organizations known as trade union so that can bargain more effectively in a united voice. Example KEPTAN stand for Kesatuan Pembantu Tadbir Dan Pembantu Tadbir Rendah (Pendidikan)

Semenanjung Malaysia.

(2) Employers and their organization Employers traditionally work to retain broad control over the operation of their business, including aspect such as corporate structure, production levels and plant size. Employers are given certain rights under law known

as management rights or management prerogative. In addition to those management rights provided by legislation, further management rights may be negotiated for, and spelt out in the employment contract. Example, Malaysian Employers Federation (MEF)

(3) The government The government plays a vital role in industrial relations through the institution of laws, rules, guidelines and court awards/decisions that regulate the provision and termination of employment, remuneration, working conditions and other aspects concerning the livelihood of employees. The Ministers of Human Resources chair the discussion and appoints the government representatives.

Conclusion The three parties are commonly known as the three social partners. Industrial unrest generally arises when employees feel that their employers demand do not commensurate with their remuneration. A breakdown in industrial relations can lead to a trade dispute where one party takes industrial action against the other.

(3) Clarity on the objective and rights of a Trade Union. (25 marks)

Introduction Trade Union activity in Malaya started after the end of the Second World War. Trade Union Act (TUA) defines; a trade union as any association or combination of employers (being employers employing employees in West Malaysia, Sabah or Sarawak) or of employees (whose place of work is in West Malaysia, Sabah or Sarawak). The Trade Union objectives are:-

(a) As representation Trade unions represent individual workers when they have a problem at work. If an employee feels he/she is being unfairly treated, he/she can ask

the union representative to help sort out the difficulty with the manager or employer. Unions also offer their members legal representation. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court.

(b) Negotiation Negotiation is where union representatives, discuss with management, the issues which affect people working in an organization. There may be a difference of opinion between management and union members. Trade unions negotiate with the employers to find out a solution to these differences. Pay, working hours, holidays and changes to working practices are the sort of issues that are negotiated. In many workplace there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. In these organizations, unions are said to be recognized for collective bargaining purpose.

(c) Voice in decisions affecting workers. The economic security of employees id determined not only by the level of wages and duration of their employment, but also by the management`s personal policies which include selection of employees for layoffs, retrenchment, promotion and transfer. These policies directly affect workers. The evaluation criteria for such decisions may not be fair. So, the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interest.

Besides the objective, trade union have the implication or right such as:-

(a) Name A trade union need not be called a union. Many unions call themselves associations. This is particularly common where the members are professionals or senior officers, e.g the University of Malaya Academic Staff Association and the Association of Maybank Class One Officers.

All the unions of employers are labelled associations e.g the Malayan Commercial Banks Association

(b) Membership Membership of union is limited geographically. Worker in Peninsular Malaysia may only join a union all of whose members work in the Peninsular. Workers in Sabah can only join a union whose members work in Sabah, and the same applies to works in Sarawak. Membership in a particular union, therefore is limited to workers in any one of the three geographical regions. This leads to some duplication of unions. There are no laws preventing foreign workers with valid work permits from joining trade unions.

(c) Nature Unions of a general nature are not permitted. Members of a trade union must be homogeneous, i.e they must work in a particular establishment, trade, occupation or industry and therefore possess common interests. The Director-General of Trade Unions will decide which trades, occupations or industries are similar should any doubt exist. For example, the Director General has decided a number of times that the electrical industry and the electronic industry are not the same and therefore one union cannot represent workers in both areas.

(d) Equal right and separated Employers and employees both have the right to form and join unions but they must be separate from each other and must satisfy the conditions i.e., they must be within any particular trade, occupation or industry. Although a number of employer`s trade unions exist.

Conclusion A trade union is an organization made up of members (a membership-based organization) and its membership must be made up mainly of workers. One of a trade union's main aims is to protect and advance the interests of its members in the workplace.

Most trade unions are independent of any employer. However, trade unions try to develop close working relationships with employers. This can sometimes take the form of a partnership agreement between the employer and the trade union which identifies their common interests and objectives.