The Law Behind Your Basic Workplace Rights
You want to know which law sets notice, leave and pay at work.
The Employment Act 1955 is the statute behind most of your basic workplace rights in Malaysia, from notice to leave to working hours.
What does this Act cover?
It sets baseline entitlements, including minimum notice, annual and sick leave, working hours and rest days.
These are the floor beneath what your contract can offer. They do not decide whether the decision to end your job was fair.
Where does this Act apply?
It applies to Peninsular Malaysia and Labuan. Workers in Sabah and Sarawak are covered by their own Labour Ordinances, the Sabah Labour Ordinance and the Sarawak Labour Ordinance.
If you work in East Malaysia, treat any figure you read about this Act as a starting point and check it against the Ordinance that applies there.
What changed recently?
Reforms in force from 1 January 2023 widened who this Act protects. They extended coverage to all employees regardless of wage and set a maximum 45-hour work week.1
If you read an older explanation, treat it with care, since coverage and some conditions have changed. The 2022 amendments page has the detail.
Does this Act decide whether your dismissal was fair?
This Act covers entitlements, not whether your employer had just cause to dismiss you. That question sits under the Industrial Relations Act.
You can have an entitlement issue under this Act and a separate unfair dismissal claim at the same time.
What should you check first?
Compare your payslips and contract with the baseline entitlements, such as notice and leave, if you think something was miscalculated when your job ended. Notice of termination shows how much notice you were owed.
If your real concern is the reason for your dismissal, check your filing window on the deadline calculator as well.
If a dismissal or a dispute over your entitlements is behind your question, an independent employment lawyer can review your role and facts. They can act on a claim if you have one.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
Does this Act tell me if my dismissal was fair?
No. It sets baseline entitlements such as notice and leave. Whether a dismissal itself needs just cause or excuse is answered under a separate law instead.
Does this Act apply to workers in Sabah and Sarawak?
It applies to Peninsular Malaysia and Labuan. Sabah and Sarawak each run their own Labour Ordinance, which sets similar entitlements for those states.
What kind of workplace issue does this Act actually cover?
It deals with entitlements owed during and at the end of employment, such as notice, leave and certain benefits, rather than the reason behind a dismissal itself.
Did anything about this Act change recently?
Yes. Reforms in force from 2023 widened who is covered and updated several working conditions, so an older summary of this Act may be out of date.
Sources
- Employment Act 1955 amendments in force from 1 January 2023 extended statutory coverage to all employees regardless of wage, and introduced a maximum 45 hour work week. Malay Mail, Employment Act 1955 Amendment 2022
Keep reading
If a dismissal or a dispute over your entitlements is behind your question, an independent employment lawyer can review your role and facts. They can act on a claim if you have one.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.