20140225043242_topic 2 legal environment

INTRODUCTION

EMPLOYMENT ACT (AMENDMENT) 2000

SETTING DATE OF PRELIMINARY ENFORCEMENT

In delivering the power vested by subsection 1(2) Employment Act (Amendment) 2000 [Act A1085], the Minister has established 1 October 2000 as the date the Act to be enforced. Dated 28 September 2000.

Tan Sri Dr Fong Chan Onn

Former Minister of Human Resources

TTooppiicc

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Legal Environment

LEARNING OUTCOMES By the end of this topic, you should be able to:

1. Identify legal Acts that influence human resource management;

2. Explain the aspects in each Act that influence human resource management; and

3. Discuss the purpose of each work-related Act enacted by the Malaysian government.

TOPIC 2 LEGAL ENVIRONMENT

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The passage shows the Employment Act (Amendment) 2000, which was announced by Tan Sri Dr Fong Chan Onn, former Minister of Human Resources. The laws and regulations concerning employment and work relations enacted by the authorities are regularly amended to fulfil current needs. These laws and regulations influence policies, activities and human resource management programmes formed by an organisation. The organisationÊs management team, especially the human resource management unit, needs to create policies and procedures which abide by the law, so that all actions taken will be according to the law. Among the Acts related to human resource management in Malaysia are the:

(a) Employment Act 2000

(b) Industrial Relations Act 1967

(c) Trade Unions Act 1959

(d) Occupational Safety and Health Act 1994

(e) Employees' Social Security Act 1969

(f) Human Resource Development Act 2001

(g) Employees Provident Fund Act 1991

(h) WorkmenÊs Compensation Act 1952

EMPLOYMENT ACT 2000

The Employment Act 1955 was enacted with the purpose of protecting employees from being exploited by employers, and became the legal foundation in highlighting the minimum conditions and terms related to work that need to be followed by management.

2.1

ACTIVITY 2.1

Before you explore the legal aspects related to work relations, try to think about what will happen to the work relations between management and employees if there is no legal system enacted to protect the rights of both parties.

TOPIC 2 LEGAL ENVIRONMENT 22

A few amendments have been made to the Act since it was enforced and the latest amendments were made in the year 2011. This act is referred to as the Employement (Amendment) Act 2012. Some of the amendments found in this act included: (a) New definitions of „contractor for labour‰, „part-time employee‰ and

„sexual harassment‰ (Part I, Section 2);

(b) Payment of wages (Part III, Section 19 & 22);

(c) System of payment of wages (Part V, Section 25);

(d) Contractors, principals and contractors for labours (Part VII, Section 33A);

(e) Maternity protection (Part IX, Section 44A);

(f) Domestic servants (Part XI, Section 57A & 57B);

(g) Public holidays (Part XII, Section 60D);

(h) Employment of foreign employees (Part XIIB, Section 60K);

(i) Complaints and inquiries (Part XV, Section 69B); and

(j) Sexual harassment (Part XVA). Employment Act 1955 consists of employment who are contractuallly bound to the management and: (a) Their monthly salary is not over RM2,000; or

(b) Not taking into account their monthly total earing and work as a:

(i) Manual labourer; or

(ii) Supervisor to manual labourers; or

(iii) Person involved in handling motor vehicles; or

(iv) Domestic employee.

In this topic, we will only discuss a few important elements concerning work relations mentioned in Emplyoment Act 1955 as shown in Figure 2.1.


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Figure 2.1: Employment Act 1955

2.1.1 Contract of Service

A contract of service is an agreement whereby employers agree to employ a worker to work and the worker agrees to serve as an employee. This can be done verbally, in writing, explicitly or implicitly. However, in certain instances such as the following, the contract of service needs to be done in writing: (a) Work that involves a duration of more than one year; or

(b) An apprenticeship contract that is not less than two years. The Employment Act 1955 also allocates a few prohibitions towards the contract of service such as: (a) Barring employees from participating in any trade union activities and

associations; and

(b) Setting conditions on how employees spend their fee. Apart from that, the end of a contract of service notice needs to be stated in the contract of service. If the notice period is not set in the contract of service, the minimum period of notice that is allocated under the Employment Act 1955 is as shown in Table 2.1.

Table 2.1: End of Service Notice

Period of Employment Period of Notice

Less than 2 years 4 weeks

2 years or more, but less than 5 years 6 weeks

5 years or more 8 weeks


2.1.2 Payment of Wages

The period of payment of wages cannot extend to more than a month and employers need to pay their employees no later than the seventh day after the last day of payment period. However, as the meaning of wages include overtime, the organisations found it difficult to calculate overtime payments in time to meet the seventh day requirement. Therefore, the new amendments in the Employment (Amendment) Act 2012 under section 19(2) stated that employers are allowed to pay wages for work done on a rest day, public holiday and overtime not later than the last day of the next wage period. As such, the employer can pay the employees their wages for the month by the seventh of the following month and make payment for work done on a rest day, public holiday and overtime with the following month's wages. It is the right of employers to stop making any payments to the employees if the employees are not present at work due to imprisonment or attending court unless their attendance in court is as witness to the employers.

2.1.3 Recruitment of Women

According to the Employment Act 1955, female employees working in the industrial and agricultural fields are not allowed to work from 10pm to 5am. However, employers can apply to the Director General of the Labour Department to enable the female employees to work at these times. Study the Employment Act 1955: Part VIII and find the protections that need to be given by employers to female employees.

ACTIVITY 2.2

Even though a contract of service can be made verbally or in writing, what are the terms that need to be given to an employee in writing or before he or she starts working?

ACTIVITY 2.3

If your payment period is from the 14th to the 13th of the next month, according to the Employment Act 1955, what is the last day that your employer needs to pay your fee?


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2.1.4 Maternity Coverage

Female employees have the right to maternity leave of at least 60 days for every delivery; and a maternity allowance at the rate of a normal fee or their monthly salary if they have already been employed by the employer:

(a) At any time in the four months immediately before their confinement; and

(b) For a period of, or periods amounting in the aggregate to, at least 90 days during the nine months immediately before their confinement; and

(c) Inform the employer four months before their confinement. However, female employees who have five or more living children are not eligible to maternity allowance. Apart from that, female employees have the right to take 30 days of maternity leave prior to or right after the delivery. Previously, a female employee who is not within the scope of the Employment Act 1955 was not entitled to maternity coverage unless the contract of service stipulates otherwise. However, with the Employment (Amendment) Act 2012 under Section 44A, the scope of maternity coverage has been extended to all female employees who are employed under a contract of servise irrespective of wages.

2.1.5 Normal Hours of Work

Figure 2.2 shows the normal work hours according to the Employment Act 1955. The Employment Act 1955 states that work hours cannot exceed five hours without being given any rest of at least 30 minutes. For example, if work hours are from 8am to 5pm, employees must be given rest 30 minutes before 1pm or, at the latest, 1pm.


Figure 2.2: Normal Hours of work according to the Employment Act 1955 (Section 60A)

Apart from that, the employees should not be required under their contract of service to work more than eight hours a day (not including rest period). If an employeeÊs work hours are from 9am to 6pm (nine hours), he needs a rest from 1pm to 2pm (one hour). The total working hours in one week should not be more than 48 hours. However, employees are allowed to work overtime. The maximum number of overtime allowed for an employee is 104 hours in one month, unless exempted by the Minister under section 2B.

ACTIVITY 2.4

Go online and find out three types of eligible unused sabbatical leave during employment.


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2.1.6 Rest Days, Hours of Work, Holidays and Other Conditions of Service

Every employee has the right to enjoy a minimum number of rest days, hours of work, holidays and other conditions of service under the contract of service as enacted in the Employment Act 1955. Among the holidays covered in this Act are:

(a) Rest Days

Employees shall be allowed whole day of rest in a week. However in cases where they are required to continually engage in work on a rest day (due to the nature of the job), he shall be paid accordingly as shown below:

(i) Employee employed on daily, hourly or other similar rate (Table 2.1):

Table 2.1: Daily/Hourly Wages for Rest Days

No. of Hours of Work Wages

Does not exceed half of normal hours of work. 1 day wage at ordinary rate.

More than half but does not exceed his normal hours of work.

2 days wages at ordinary rate.

(ii) Employee employed on a monthly or weekly rate of pay (Table 2.2):

Table 2.2: Monthly/Weekly Wages for Rest Days

No. of Hours of Work Wages

Does not exceed half his normal hours of work.

Half day of ordinary rate.

More than half but does not exceed his normal hours of work.

1 day of at ordinary rate.

(iii) For work done exceeding normal hours of rest day in (i) or (ii), he shall be paid no less than 2 times his hourly rate of pay.

(iv) For these employed on piece rates who works on rest day, he shall be paid 2 times his ordinary rate per piece.

(b) Weekly Leave

Employees have the right to enjoy one day of leave every week. In certain situations, such as when the workplace is far away and travelling takes a long time, employees are allowed to group their weekly leave on the


condition that the employers ask for permission from the Minister of Human Resources.

(c) Public Holidays Employees have the right to enjoy 11 days of gazetted public holiday which are set for that particular year. The 11 public holidays must cover these five days:

(i) National Day;

(ii) Birthday of the Yang di-Pertuan Agong;

(iii) Birthdays of the Sultan and Yang di-Pertuan Negeri or Federal Territory Day;

(iv) Labour Day; and

(v) Malaysia Day.

(d) Annual Leave Employees have the right to obtain a minimum number of annual leave according to their service period, as allocated in the Employment Act 1955, shown in Table 2.3:

Table 2.3: Annual Leave Entitlements

Employment Period Number of Days Allowed

Less than 2 years 8 days

2 years or more, but less than 5 years 12 days

5 years or more 16 days

Employees who are absent from work without permission from employers and without any appropriate reason, and whose absence exceeds 10% of working days for 12 months continuously are not eligible to get annual leave for the duration concerned.

(e) Sick Leave The minimum sick leave for all employees allocated under the Act is as shown in Table 2.4.

Table 2.4: Sick Leave Entitlements

Employment Period Number of Days Allowed

Less than 2 years 14 days

2 years or more, but less than 5 years 18 days

5 years or more 22 days


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Employees also have the right to enjoy 60 days of medical leave if they are hospitalised. However, this 60-day eligibility will be reduced to follow the number of standard medical leave that has already been utilised. For example, if an employee who is hospitalised has taken 10 days of medical leave earlier, then his right to medical leave due to hospitalisation is only 50 days. Find out online what actions can be taken against employees who often take sick leave and emergency leave which exceed the limit.

INDUSTRIAL RELATIONS ACT 1967 (REVISED 1976)

This Act is also intended to prevent any differences or disputes that arise from this relationship, as well as to deal with any trade disputes and related matters. The purpose is to creat industrial harmony. Among the aspects covered in the Act include protection for all parties, recognition and trade union scope, and collective bargaining and agreements. Figure 2.3 shows the items contained in the Industrial Relations Act 1967.

The Industrial Relations Act 1967 is an act that emphasises on employer-employee relations and their trade union.

2.2

EXERCISE 2.1

1. When does wage need to be made by employers to their employees?

2. How long a period must a resignation/end of contract of service notice be given if an employee has serviced for two years and five months?

3. If an employee experiences a critical illness that requires him or her to be hospitalised, how many medical leave is he or she entitled to under the Employment Act 1955?

4. Can a contract of service put any conditions on how its employees should spend their earnings? Explain.


Figure 2.3: Industrial Relations Act 1967

2.2.1 Protection of Rights of Workmen and Employers and their Trade Unions

Employee or employers cannot be forced or stopped from being involved in trade union activities. Furthermore, the management is prohibited from setting any conditions in the contract of service that is intended to prevent employees from being involved in any trade union activities. However, employees who plan to join any activities related to the union must first present a written application to their employers to obtain approval for leave.

2.2.2 Recognition and Scope of Representation of Trade Unions

Trade unions that plan to represent employees must present an application of recognition to the organisation. After receiving the application, the management must take these actions in the period of 21 days:

(a) Give recognition; or

(b) Reject the application and present the reasons in writing; or

(c) Upon recognation, employer or trade union of employers should notify the Director General.

If a certain trade union representing an employee has been given recognition, then the other unions intending to represent the particular employee are not allowed to make any recognition claims except:

(a) Withdrawn made by Trade Union and the Director General has been notified; and

(b) The minister decision not to accord recognition.


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2.2.3 Collective Bargaining and Agreements

After receiving recognition from the management, the trade union can invite the management to hold a collective bargaining in writing together with proposals for a collective agreement. The management has to reply in writing within 14 days of receipt of the invitation. Next, a collective bargaining needs to be held within 30 days of receipt of the reply accepting the invitation.

TRADE UNIONS ACT 1959

The purpose of the Trade Unions Act 1959 is to:

(a) Encourage industrial relations, amend work terms, social and economic status and increase productivity;

(b) Underline the relationship between employees and employers;

The right to form an Association is a right guaranteed by Article 10 of the Federal Constitution and this is also emphasised in both the Employment Act 1955 as well as the Industrial Relations Act 1967. Bounded under the category of „Employment Relations‰, this Act therefore governs the registration of a trade union. Any newly formed trade union(s) are therefore required to apply for registration within a month of their formation. The Act also covers the membership criteria as well as the rights, powers and responsibilities of a trade union and its managerial prepogatives for any collective bargaining.

2.3

EXERCISE 2.2

1. State the actions that need to be taken by employers after receiving an application for recognition from a workersÊ union planning to represent their employees.

2. What is the time period allocated, under the Industrial Relations Act 1967, for the management to reply to a request from workers to set up trade union in the company.


(c) Represent employees or employers in any trade disputes;

(d) Promote or organise any legitimate industrial related issues; and

(e) Plan and support any actions such as industrial strike. A trade union must be registered within one month from its establishment date. However, a period of registration of not more than six months is allowed if it is deemed appropriate. Among the membership conditions which are allocated in this Act are:

(a) Anyone planning to be the member of a union must be above 16 years old.

(b) Members under 18 years old are not eligible to vote in these matters:

Organising strikes;

Dissolving the union;

Amendment concerning member liabilities and benefits.

(c) Members under 21 years old are not allowed to hold any post in the union.

OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) 1994

This Act was enforced throughout Malaysia for all industries except the armed forces and shipping related employments which are protected under the Merchant Shipping Ordinance 1952 and the Merchant Shipping Ordinance 1960 for Sabah and Sarawak.

2.4

EXERCISE 2.3

TRUE (T) or FALSE (F) Statements

1. Anyone above 16 years old can join a trade union.

2. Those under the age of 18 have limited participation in union activities.

3. Those above 18 years old can be officers in a workersÊ union.

4. The management has the right to stop its employees from joining workersÊ union activities.


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Among the objectives of this Act are to:

(a) Ensure the safety, health and welfare of employees at the workplace;

(b) Protect others that are present at the workplace from any accidents that might be triggered by workersÊ activities;

(c) Ensure that the work environment is conducive; and

(d) Enable related legalities be replaced in stages by industrial rules and regulations which are approved and practised by all in order to maintain and increase the standard of safety and health at the workplace.

Employers requirement under OSHA (1994) Act. Employers must comply to the following: (i) Ensure the safety of employees at the workplace;

(ii) Draft and disseminate the safety policy;

(iii) If an organisation has more than 40 staff, it is required to appoint a safety committee;

(iv) Appoint dedicated safety and health officer (under scope of relevant regulation);

(v) Provide training supervision and information on safe work practice; and

(vi) Report serious accidents to Department of OSHA. Further discussion concerning the Occupational Safety and Health Act 1994 will be provided in Topic 11. Visit http://www.dosh.gov.my to get information about the rules listed in the Occupational Safety and Health Act 1994.

This Act requires the management to establish a safety and health committee if it has 40 or more employees in the workplace or if directed by the Director General.

EXERCISE 2.4

1. State the objectives of the Occupational Safety and Health Act 1994.

2. What are the employers requirement on safety and health committee at the workplace as stipulated under OSHA (1994)?


EMPLOYEES’ SOCIAL SECURITY ACT 1969 (SOCSO)

The Social Security Organisation is an organisation set up to administer, enforce and implement the EmployeesÊ Social Security Act 1969 and the EmployeesÊ Social Security (General) Regulations 1971. SOCSO is the abbreviation for the Social Security Organisation. It is commonly known in Malay as PERKESO or Pertubuhan Keselamatan Sosial. Initially, SOCSO or PERKESO was a government department which was then converted to a statutory body in 1985. The Social Security Scheme aims to protect employees from any unexpected occurrences such as disasters, accidents and death at the workplace. This scheme ensures benefits payment to employees and their dependants through two protection schemes as shown in Figure 2.4.

Figure 2.4: EmployeesÊ Social Security Act 1969 protection scheme

(a) The Employment Injury Insurance Scheme This scheme protects employees from disasters at work including industrial accidents, accidents that occur during business related travels, and service illnesses, which are illnesses caused by employment. Under this scheme, only employers are required to make monthly contributions to every employee with the rate of 1.25% of their monthly salaries.

(b) The Invalidity Pension Scheme This scheme gives a 24-hour protection to employees against accidents or fatalities without considering the cause. The management must contribute 0.5% of the employeeÊs salary, and the employee must also contribute 0.5% of his or her salary.

2.5


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Information about contribution to SOSCO is as follows:

(a) An employee employed under a contract of service or apprenticeship and earning a monthly wage of RM3,000 and below must compulsorily register and contribute to SOCSO regardless of whether the employment status is permanent, temporary or casual in nature.

(b) An employee must be registered with the SOCSO irrespective of age.

(c) SOCSO only covers Malaysian workers and permanent residents. Foreign workers, on the other hand, are protected under the WorkmenÊs Compensation Act 1952.

(d) SOCSO does not cover the following categories of person:

(i) A person whose wages exceed RM3,000 a month and has never been covered before.

(ii) Government employees.

(iii) Domestic servants employed to work in a private dwelling house which includes chefs, gardeners, house servants, watchmen, washerwomen and drivers.

(iv) Employees who have attained the age of 55 only for purposes of invalidity but if they continue to work they should be covered under the Employment Injury Insurance Scheme.

(v) Self-employed persons.

(vi) Foreign workers.

EXERCISE 2.5

1. The Social Security Act 1969 protects all employees that are employed under one contract of service with a salary of not more than RM___________.

2. The amount of contribution that needs to be made by both the employer and the employee under the Invalidity Pension Scheme is _____________.


HUMAN RESOURCE DEVELOPMENT ACT 2001

Every employer registered with the Human Resource Development Council will have to pay a human resource development levy for every employee based on their wages. Registered employers that have made the payment are entitled to apply for financial aid or the services allocated in this Act for the purpose of encouraging employee training. Table 2.5 shows the levy rate imposed according to the set criteria in the Human Resource Development Act 2001.

Table 2.5: Levy Rate According to Sector

Criteria Levy Rate Based on Employee Fee

Manufacturing sector with 50 or more employees 1 %

Manufacturing sector with employees more than 10 and not exceeding 50 employees with a paid up capital of RM2.5 million and above

0.5%

Service sectors with 10 or more employees 1%

Under this Act, the Human Resource Development Fund must be spent on:

(a) Encouraging development and growth of employeesÊ skills by designing, developing, increasing or monitoring training amenities;

(b) Preparing financial aid through loans or subsidies to employers to train or re-train their employees;

(c) Organising or implementing activities or programmes aimed at re-training employees who have been or will be laid off due to downsizing;

(d) Bearing the cost of managing the Human Resource Development Council including payment and allowances for council officers; and

(e) Bearing any administration costs for the Fund as well as the cost of implementing the Act.

This Act aims to increase employee training by imposing and collecting human resource development levies, apart from establishing Human Resource Development Councils and Human Resource Development Funds for this purpose.

2.6


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Apart from that, the Human Resource Development Act 2001 also allots aspects on the functions of the Human Resource Development Council:

(a) Evaluates and determines the types or levels of training that is in line with the industryÊs human resource needs;

(b) Increases manpower training; and

(c) Establishes the conditions for loans or financial aid. Visit http://www.hrdf.com.my to obtain information on the roles of Human Resource Development (Ltd).

EMPLOYEES PROVIDENT FUND ACT 1991 (AMENDMENT 2006)

The Employees Provident Fund (EPF), also known as Kumpulan Wang Simpanan Pekerja (KWSP), is a government organisation in charge of social security or retirement planning for legally employed workers in Malaysia. All employers must register their employees with the Employees Provident Fund immediately upon employment.

Figure 2.5 shows the EPF contribution rate.

The Employees Provident Fund (EPF) aims to encourage employee savings for the purpose of retirement.

2.7

EXERCISE 2.6

1. Describe the purposes of the Human Resource Development Fund under the Human Resource Development Act 2003.

2. State the functions of the Human Resource Development Council as set under the Human Resource Development Act 2003.


Figure 2.5: EPF contribution rate The contribution rate allocated under this Act is based on the following: (a) A worker aged less than 60 years. Full contribution is 24% (13% employers,

11% employee) for employee paid RM 5,000 and below. 23% (12% employees and 11%) for employee paid exceeding RM 5,000 a month.

(b) A worker aged 60 and above up to 75 years. Contribution rate is 50% of statutory contribution of workers aged under 60 years in the amount of wages.

Effective 1 January 2007, the contributorÊs account is divided into two types Account 1 and Account 2. All contributions are divided into the two accounts according to fixed percentages, namely, 70 percent into Account 1 and 30 percent into Account 2. These accounts are created for different purposes and different types of withdrawals are applicable to each account:

(a) Account 1 The savings here are for the purposes of retirement and cannot be fully

withdrawn before the age of 55 or passed away, or loses his capacity and intends to leave Malaysia permanently.

(b) Account 2 The savings in this account are meant to help you to make early

preparations for a comfortable retirement. Withdrawals are allowed for the purposes of:

(i) Attaining the age of 50 years;

(ii) Owning a house or making the downpayment for your first house;

(iii) Settling the balance of your housing loan for your first house;

(iv) Financing education for yourself and that of your children; and

(v) Medical expenses for yourself and that of your children.


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WORKMEN’S COMPENSATION ACT 1952

In the early stages, this Act covered all manual workers in the private sector, and non-manual workers in the private sector with a salary of not more than RM500 a month. In 1977, the scope of the Act was extended to include non-manual workers in the public sector with a salary of not more than RM400 a month. The next amendment was made in 1993 where it gave protection to all foreign workers in the private sector, whereas all local workers in the private sector were covered under the EmployeesÊ Social Security Act 1969. However, in 1996, this Act was amended so that it only gives protection to non-manual workers in the public sector with a salary of not more than RM400, while foreign workers are protected under the Foreign Workers Compensation Scheme 1952.

This Act aims to compensate employees who are injured or contract illnesses caused by their work.

2.8

ACTIVITY 2.5

Visit http://www.kwsp.gov.my and find information on these questions:

1. How much can be withdrawn from Account 2 for the purpose of paying for a house?

2. What actions can be taken by an employee if the management does not make any EPF contribution?

EXERCISE 2.7

According to the Employees Provident Fund Act 1991, membersÊ accounts are divided into two different accounts with different percentages. State the percentages from the total contribution allocated to each account and explain the purposes of each account.


EXERCISE 2.8

Fill in the Blanks

To test your knowledge of the legal environment in human resource management, answer the questions below:

1. Halim has worked with CBA Company for four years. Therefore, the number of annual leave he is eligible to under the Employment Act 1955 is ___________ days.

2. Employers are prohibited to ask or demand an employee to work more than ___________ hours a week.

Multiple Choice Questions 1. Below are items contained in the Employment Act 1955

EXCEPT ___________. A. Hours of work B. Annual leave C. Procedure of settling dissatisfaction D. Payment of fee

2. Below are statements of hours of work alloted for an employee under the Work Act 1955 EXCEPT _____________. A. Working not more than 8 hours in a day B. Employees must be given a rest period of at least 45 minutes C. Working not more than 5 hours without given a rest D. Working not more than 48 hours in a week

3. MembersÊ accounts are divided into two accounts under the Employees Provident Fund Act 1991. Account 1 can be withdrawn when the member _____________. A. Is settling a loan B. Is purchasing a house C. Is handicapped and can no longer work D. Is settling medical expenses

4. The purpose of establishing the Human Resource Development Fund is to _______________. A. Develop employeesÊ skills through training B. Prepare start-up business loans for employers C. Implement financial crisis reinstallation activities or

projects for an organisation D. Pay all organisation expenses to acquire business from its

competitions


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5. Which of these is NOT TRUE regarding female employees under the Employment Act 1955? A. Female employees have the right to 60 days of consecutive

maternity leave. B. Female employees are not allowed to work between 10pm

and 5am. C. Female employees are only allowed to perform light jobs that

do not include handling machineries. D. Female employees are eligible to maternity allowance if they

inform the management four months before the due date.

6. Below are the functions of the Human Resource Development Council EXCEPT: A. Deciding on the conditions in giving aid and financial loans. B. Increasing manpower training. C. Evaluating and determining the types of training that are

suitable for industrial needs. D. Helping an organisation solve employeesÊ disciplinary

problems. Essay Questions

1. Amin has worked in Syarikat Teguh for five years. He was admitted to the hospital for 60 days due to a road accident. How many days of standard medical leave can he take after the accident in that particular year?

2. State four public holidays that have been set and be made compulsory in the calendar year.

3. What are the types of leave conditioned in the Employment Act 1955?

4. Are all employers and employees required to contribute to the Social Security Organisation (SOCSO)? Explain.

5. Elaborate briefly on the types of scheme introduced under the EmployeesÊ Social Security Act 1969.


Overall, it is clear that legal systems do influence work relations formed between employers and employees.

The Industrial Relations Act 1967, which has been discussed in this topic, should be able to give you a more comprehensive picture about the importance of having a systematic and organised human resource management system.

This can ensure a harmonious working relationship between employers and employees.

In addition, this can help an organisation reach competitive advantage in the local as well as the global market.

Contract of service

EmployeesÊ Social Security Act 1969

Employer-employee relations

Employment Act 1955

Human Resource Development Act 1992

Industrial Relations Act 1967

Leave

Maternity coverage

Normal hours of work

Occupational Safety and Health Act (OSHA) 1994

Payment of wages

Recruitment of women

Trade Unions Act 1959

WorkmenÊs Compensation Act 1952

20140225043242_topic 2 legal environment

Documents

health act

act a1085

workrelated act

employement amendment

b industrial relations

h workmens compensation

g employees provident

human resource management