Navigating the complex landscape of Malaysian labor laws can be challenging, especially when it comes to the differences between federal and state-level regulations. This blog post aims to shed light on the key distinctions between the Employment Act 1955, the Labour Ordinance Sarawak, and the State of Sabah Labour Ordinance, focusing on
- incomplete month salary;
- employer obligations for transport; and
- general penalties.
Key Differences
1. Incomplete Month Salary
Employment Act 1955
(Monthly wages / Number of days of the particular wage period) X Number of days eligible in the wage period
Here’s a breakdown of each component:
1. Monthly wages: This is the employee’s total monthly salary before any deductions.
2. Number of days of the particular wage period: This refers to the total number of days starting from date join until the last day of the month, including off day, rest day and Public Holiday or starting from the 1st day of the month until the last physical working day.
3. Number of days eligible in the wage period: This refers to the calendar days employees get paid, whether they are working days or not.
Scenario:
• An employee’s monthly salary is RM3,000.
• The employee starts working on the 15th of the month.
• The month has 31 days.
Calculation:
• Number of days of the particular wage period: 31 days
• Number of days eligible in the wage period: 15th until 31st = 17 day
• Incomplete month salary: (RM3,000 / 31) x 17 = RM1,645.16
In this example, the employee would be entitled to RM1,645.16 for the incomplete month.
Labour Ordinance Sarawak/State of Sabah Labour Ordinance
(Monthly wages / 26) X Number of days eligible in the wage period
Here’s a breakdown of the formula:
1. Monthly wages: This refers to the ordinary rate of pay per day.
2. 26: This represents the assumed number of working days in a month.
3. Number of days eligible in the wage period: This refers to the calendar days employees get paid, whether they are working days or not.
Scenario:
• An employee’s monthly salary is RM2,000.
• The employee worked 20 days in an incomplete month.
Calculation:
• Incomplete month salary: (RM2,000 / 26) x 20 = RM1,538.46
In this example, the employee would be entitled to RM1,538.46 in wages for the incomplete month.
2. Employer’s Obligation to Provide Transport
• Labour Ordinance Sarawak/ State of Sabah Labour Ordinance: The employer must provide safe and appropriate means of transport if the journey requires a stop, with additional requirements for overnight accommodation, medical assistance, and the well-being of employees during repatriation.
3. General Penalties
• Employment Act 1955: A fine not exceeding RM50,000.
• Labour Ordinance Sarawak: A fine of up to RM10,000. If they continue to break the law after being punished, they could face an additional fine of RM100 for each day they keep breaking the law.
• State of Sabah Labour Ordinance: A fine not exceeding RM10,000.
Conclusion
Understanding the nuances between these labour laws is crucial for employers and employees operating in different regions of Malaysia. By familiarizing yourself with the specific provisions of the Employment Act and the relevant Labour Ordinances, you can ensure compliance and protect your rights.
For more detailed information and specific guidance, it’s recommended to consult with a legal professional or HR expert.
#MalaysiaLaborLaws #EmploymentAct #SarawakLaborOrdinance #SabahLaborOrdinance #HRCompliance #WorkplaceRights #Malaysia
