human resource management

Malaysian Employment Law

Presented by:• Liew Sook Mun CEB130025• Lim Ke Sin CEB130026

• Employment Act 1955 ( Last amendment on 1 April 2012 )

• Children and Young Persons Employment Act 1966( Last amendment on 1 January 2006 )

• Human Resources Development Act 1992

• Holidays Act 1951

• Forms an integral part of The Star Media Group, one of Malaysia's leading media companies with interests in newspapers, magazines, radio, as well as online portals.

Company Background

26 June 1997

Chinese English and Bahasa Malaysia. 

30th December 2005 December 2011

Interviewee’s Background

Name : Angie Ng

Head of Human ResourcesStar Radio GroupJanuary 2013 – Present ( 2 years 5 months ) – Petaling Jaya

HR Manager Moet Hennessy Diageo MalaysiaNovember 2010 – December 2012 ( 2 years 2 months ) –Kuala Lumpur

The terms and conditions of employment will be stated into

a letter of appointment, company handbook or collective agreement?

How frequent you will revise the T&C?

•It’s a combined thing. •Appointment letter will include the important information and gist like salary, working hours and days, key benefits.•Company’s policies include in handbook. •Company will state in appointment letter where employees are require to refer to the handbook for further information.

How frequent they will revise the T&C in the letter and handbook?• It depends on.•For example monthly allowance for Petrol.

Employment Act only covers those who earn not more than RM2000 per month.

Do you think that RM2000 is still a suitable wage ceiling in current economic situation?

•Fresh graduates’ salary are more than RM2000. •The employment act is outdated•It ensures that suburb areas are covered because their salary is lower than city area. However,•The ceiling is too high - problem - outskirt area.

“An employer shall not terminate the service of a local employee unless he has first terminated the services of all foreign employees employed in a capacity similar to that of the local employee.”

Do you think that it is workable?

•In every country, it’s important to protect our own country citizens. o Government emphasized on prioritizing Malaysian during

recruiting.

•If there is really a redundancy, who will SRG retrench, based on capability or country background?o Performance-based, background of employees should be

neglected.

Will the complicated law of hiring full time foreigners stops you

from employing them?

• Yes. • Consume time, cost and hassles.• However, it’s not applicable to hotels, restaurants (no

choice) and higher level people(candidate very good).• They will engage an agent who acts as middle person and

charge service fees.

• For SRG• Does not face problems in hiring locals.• Engage agent once in a while, depends on position.

Does Star Radio Group allow advances on wages?

If so, how to apply and what’s the terms and conditions?

Yes. 1. Only applicable to festival celebrations of respective religions.2. Amount is half of their salary.

Fill in the form HR will

processPay them in cash Deduct next

month salary

What’s your opinion on paternity leave? Does Malaysia need to implement this

to promote gender equality?

How it will affect a company’s productivity?

1. SRG offers 2 days paternity leave.2. Maternity leave takes 60 days. They are moving towards 90

days, depends on industry practice. • Be in line with the other competitors in industry, because it

helps in recruiting.3. Some companies offer 2 months full-paid, can opt for two

months half-paid. And 4. It applies to all levels of employees, this kind of

benefits has to be fair to everyone.

When annual leave turns out to be sick leave or maternity leave,

what’s the procedures in granting the leaves?

•Annual leave Sick leave/ Maternity leave • as long as they can provide the proof.

•Maternity leave Sick leave • it’s consecutively 60 days, it’s not convertible for public

holiday or sick.

Example:A lady applies for 7 days annual leave.She gives birth on the 6th day, so the 6th day onwards will be counted as maternity leave, 5 days annual leave has been taken.

Is the employee allowed to claim when she fell sick during maternity leave?

Can the expenses be covered?

•Yes.• Normal claim.

•No.• Anything regarding to maternity, like

pre/post maternity body check-up.

If an employee took medical leave more than 60 days in a calendar year,

what kind of action will be taken?

Who will take over the jobs if an employee is taking a

long medical leave/ maternity leave?

Depends on the job structure and duration of leave. •Segregate to colleagues•Engage part-timers for help.

Constantly communicate with the employee who is taking leave•current condition•estimated time to resume work•Still interested or want to rest

Does Star Radio Group has termination benefits?

Under what conditions you will terminate an employee and

what benefits will you offer?

Finance department calculate the total based on their year of service, and choose an option that is better off.

Top management decides how much to pay for them.

Industrial practice,1 month per year of service

By law, > 5 years, 20 days per year of service.

HR identify who to terminate and let go

Look into department headcount.

Check on redundant position and surplus

Top management decides to downsize a certain number of employees

• Laws must protect everyone equally and define legally acceptable standards of behaviors, which should be applied consistently.

• Legislative employment protections should set minimum standards that apply to everyone and every company.

• Additional protections can and should be available to any group that doesn’t have a record of equal protection under the law.

Conclusion

References• Employment Act 1955 ( Last amendment on 1 April 2012 )

• Children and Young Persons Employment Act 1966 ( Last amendment on 1 January 2006 )

• Human Resources Development Act 1992

• Holidays Act 1951