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KMS3084 EMPLOYMENT LAWS

Unit 1
Introduction to Employment Laws

a) What is Employment Law?

b) Development of Malaysian employment law
c) Why study employment law?
Common law duties of employers
Common law duties of employees
d) Roles of Labour Department, Labour Court and Director
General of Labour (DGL)

What is Law?
Law is the body of enacted or customary rules recognized by a
community as binding; a body of rules which are enforced by a
State.
Law protects basic individual rights and freedom such as liberty,
equality and freedom of speech.
It prevents individuals in powerful position from taking an unfair
advantage of other people.
Law ensures a safe and peaceful society, in which individual
rights are preserved.

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What is Law?
Law applies to every persons, public authorities,
governmental departments, private bodies, profit making
organizations as well as non-governmental organizations.

People have to know their scope of rights and freedom

granted to them by government and must be able to
demand for their rights whenever injustice takes place.

Have you heard about Malaysian

Labour Legislations?

List down the example of Malaysian

Labour Legislations that you are
aware off.
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What is Employment Law?

Employment Law regulate the relationship between employer
and individual employee.
It is based on contract of service and this concept
originated from the concept of master and servant.
Employment law is another name used for Labor law. This
law is used for the employee's benefits.
It is the law which deals with the legal rights of and limitations
on working people and their organizations.

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What is Employment Law?

Labour law is laws and regulations that governs both the

employment and industrial relations sectors. The purpose
of labour laws are:-
(i) To regulate the relationship between employer and
employee individual and collective;
(ii) To determine the rights and liabilities of parties;
(iii) To prevent and settle trade disputes; and
(iv) To give remedy.

What is Employment Law?

As such, it looks at many features of the links between manager,
trade unions and employees. In different countries there are
different; employment laws linked to unionized places of work are
different from those relating to specific individuals and in most of
the countries these differences are not there.

What is Industrial Law/ Industrial

Relations Law?
The Industrial Relations Law in Malaysia operates within the
legal framework of Industrial Relations 1967 and Industrial
Relations Regulations 1980.
The Industrial Relations Law regulate the relationship between
employers, workmen and their trade unions, and the
prevention and settlement of trade disputes and any relevant
arising matters therefrom.

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Development of Malaysian Employment Law

Basically, it was created from the idea known as the
subordination of individual employee with the capitalist
enterprise.
In general, labor law started because the workers demand
for suitable environment, right to organize, and the
instantaneous demands of employers to limit the powers of
workers' and to keep labor costs low.
It is also taking into consideration on the safety and health
of employees.
Labor rights have been essential to the social and
economic growth since the industrial revolution.
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Development of Malaysian Employment Law

There was a revolutionary regarding this relationship which
started with master and servant, connoting the idea of
slavery where the servant served the master.
The relationship has changed over the years due to many
reasons. It has changed to employer and employee
relationship with the attached connotes rights and
obligations.
This is where the employer has an obligation to provides
wages, benefits, safe working environment and other
protections within the ambit of laws.

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Development of Malaysian Employment Law

When the British came, they brought with them migrant

workers.
This migrant workers were brought in under the Indenture
system which means that they were brought in for a certain
period of time and for certain kind of job.
When the period end, they have the choice (either continue
to work for another specified period or return to their
country).
The Indenture system applied to the migrant workers are
mining and rubber plantation.
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Development of Malaysian Employment Law

During this period, there is no comprehensive labour

legislation. Therefore the British authority in the Straits
Settlement drafted a Labour Code to be abided by the
workers who were working under the Indenture System.
The Indenture System is very much designed and framed
for the condition of Chinese and Indian workers at mining
and plantation industries.
The Labour Code was extended to FMS in 1912. It was
revised where it applied to all races and workers.

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Development of Malaysian Employment Law

Nonetheless the Labour Code was quite restricted

because the provisions are suitable only for working
conditions in mines and plantations industries (i.e. it does
not cover the factory workers at that instant).
Only after the formation of Malayan Union, the first
ordinance has been established.
After Independent, it is known as Employment Act 1955.
When is the latest revision of Employment Act and
Sarawak Labour Ordinance?

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Why Study Employment Law?

Common Law Duties of Employers
The common law duties of employers are implied into all
contracts of employment including those covered by the
Employment Act 1955.
Employers owe the following common law duties to their
employees:-
i. Duty to pay wages
ii. Obligation to provide work
iii. Duty to indemnify
iv. Duty of care
v. Duty to treat the employee with respect and trust
vi. Duty to give testimonials and references
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Why Study Employment Law?

Common Law Duties of Employers

i. Duty of wages employers are contractually liable for work done.

Apart from offering a salary, some employers may opt to pay an
employee for work done or service provided by means of
commission, fee and receipt of tips from customers.
Other aspects to be considers in duty of wages includes:-
- date of payment
- quantum
- availability of work
- bonus
- illness

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Why Study Employment Law?

Common Law Duties of Employers
ii. Duty to provide work It is a duty of employer to assigned or
provide the work/tasks to their employee. An employer has the
power to give orders to employees and expect them to be
obeyed.

The law has also recognized that the employer must provide
work in certain exceptional circumstance.
- where employment is essential to provide a reputation for
future employment.
- where remuneration depends on the amount of work (i.e.
sales commission).
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Why Study Employment Law?

Common Law Duties of Employers
iii. Duty to Indemnify All expenses, losses and liabilities
incurred by an employee in the course of duty must be
indemnified except where:-
- The employee knew that they were doing an unlawful act.
- The employee knew that the employer has no right to give
the order in question.

iii. Duty of care

iv. Duty to treat the employee with respect and trust
v. Duty to give testimonials and references.

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Why Study Employment Law?

Common Law Duties of Employees
The main employees duties are obedience, fidelity and care and
skill.
Obedience* the employee expected to obey the orders/
instructions given by the employer.
Fidelity the employee must serve their employer in a good
faith, must act in a manner to protect their employers interest,
not make profits at his or her employers expense, not
disclosing confidential information to other irrelevant/
unauthorized individuals and use his/ her employers time for
their own self-serving purposes.

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Why Study Employment Law? Common

Law Duties of Employees

Care and skill the employee is expected to carry out their

tasks and achieve a standard skill and competence that can
reasonably be expected of someone with their experience and
training, including not to be unreasonably cause injury or
damage in the course of doing their work.

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What is the roles of Labour

Department, Labour Court and
Director General of Labour?

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