Kopitiam Talk Recap: Avoiding Common Pitfalls in Employment Act Compliance and Dispute Resolution

Our latest Kopitiam Talk, titled “Avoiding Common Pitfalls: Mastering the Art of Employment Act Compliance and Dispute Resolution,” was an engaging and enlightening session held on December 3rd, 2024, at the MyWave HQ. Facilitated by the esteemed Rajkumar Balan, this event explored the intricacies of the Malaysian Employment Act 1955, highlighted key compliance pitfalls, and shared effective strategies for dispute resolution.

This event is part of our monthly Kopitiam Talk series, offering insights into critical topics and networking opportunities, complete with a delicious free breakfast. Here’s a detailed recap of the event for those who missed it.

Key Highlights from the Event

1. Overview of the Employment Act 1955

• The Act governs employment conditions for most employees in Malaysia, including those earning up to RM4,000 monthly and manual laborers regardless of their salary.
• Recent amendments have expanded coverage to all employees, ensuring universal protection and introducing updates like:
  • Reduced working hours (now 45 hours per week).
  • Extended maternity leave (from 60 to 98 days) and new paternity leave (7 days).
  • Flexible Work Arrangements (FWA): Employees can request modifications to working hours, workdays, or location. Employers are entitled to respond within 60 days the approval or rejection of FWA request with reasons.
  • Equal Treatment and Discrimination where employers must provide:
    • Equal pay for equal work.
    • Non-discriminatory policies for gender, religion, or nationality.

2. Common Compliance Pitfalls

Many businesses inadvertently violate provisions of the Act, leading to legal risks and financial penalties. Key pitfalls discussed included:

• Unlawful terminations without proper procedures, such as dismissals without documented warnings.
• Improper handling of overtime, where eligible employees are misclassified to avoid overtime pay.
• Misclassification of employees, such as labeling permanent workers as contractors.
• Incomplete documentation, including unsigned contracts or lack of disciplinary records.

3. Effective Dispute Resolution Mechanisms

Participants learned about the steps involved in resolving disputes internally and through official channels:

• Internal grievance procedures promote early resolution.
• Labor and Industrial Relations Departments handle wage disputes and unfair dismissal claims.
• Industrial Court cases often end with reinstatements or monetary compensation.

Real-life scenarios, such as unfair dismissals and overtime disputes, were analyzed to provide practical insights.

4. Practical Tips for Employers

• Conduct regular compliance audits.
• Train HR teams on Employment Act provisions and dispute resolution protocols.
• Ensure transparent communication with employees about their rights.
• Ensure contracts are clear and aligned with the Employment Act

Why Compliance Matters

Non-compliance can lead to hefty fines (up to RM50,000), lawsuits, and reputational damage. On the other hand, adhering to the Employment Act fosters:

• Improved employee satisfaction and retention.
• Enhanced brand reputation as an employer of choice.
• Reduced risk of legal penalties.

Why You Should Join Our Kopitiam Talks

Our Kopitiam Talks provide a relaxed, friendly environment to discuss important topics like HR compliance, payroll best practices, and labor law updates. With free breakfast, it’s not just an opportunity to learn but also to network with like-minded professionals and connect with industry experts.

Upcoming Kopitiam Talk

If you found this recap valuable, we warmly invite you to join our next Kopitiam Talk at MYWave HQ (find us here). It’s free to attend—just register to secure your spot, enjoy a hearty breakfast, and engage with HR professionals.

Contact Us

For more information about our HRMS solutions, payroll outsourcing, and upcoming events:

• Website: MYWave
• Email: enquiry@mywave.biz
• Phone: +604-305 9600

Don’t miss out on this enriching experience. See you at the next Kopitiam Talk!

Remember, staying informed is the first step to ensuring compliance and avoiding costly mistakes. If you would like to download the training materials used in this session, kindly download it here.