Are you a business owner in Malaysia? As an employer, it’s crucial to understand the employment laws to comply with the regulations and provide a safe working environment for your employees. Malaysia has strict employment laws to protect the rights of employees and maintain industrial harmony. Hence, companies need to have comprehensive knowledge of the employment laws in Malaysia to avoid legal complications. In this article, we’ll cover the essential aspects of employment laws that you need to know.
Basic Employment Laws in Malaysia
Malaysia has several laws and regulations to safeguard employees’ rights, including minimum wage, working hours, and overtime pay. The Employment Act 1955 is the primary law governing employment in Malaysia. The law applies to all employees who earn less than RM2000 per month and those employed in specific industries. The Employment Act covers various aspects, such as:
- Working hours
- Annual leave
- Sick leave
- Public holidays
- Termination of employment
- Overtime pay
Besides the Employment Act, Malaysia has other laws governing employment, such as the Industrial Relations Act 1967 and Trade Union Act 1959.
Employment of Foreigners in Malaysia
Malaysia has specific laws for the employment of foreigners. Companies need to obtain work permits and visas for foreign employees before they start working in Malaysia. The Malaysia Digital Economy Corporation (MDEC) handles the issuance of work permits for foreign employees. The permits are valid for up to 5 years and are renewable. Companies that employ foreign workers need to comply with the minimum wage requirements and other laws applicable to local employees.
Company Incorporation in Malaysia
Before employing workers in Malaysia, companies need to incorporate their businesses with the Companies Commission of Malaysia (SSM). The SSM is responsible for the registration of companies and businesses in Malaysia. Company incorporation in Malaysia involves the registration of the business name, address, directors, and shareholders. The SSM registration is crucial for companies to operate legally in Malaysia.
Professional Assistance for Compliance
Complying with employment laws and regulations can be daunting for businesses. It’s crucial to seek professional assistance from a corporate service provider like 3E Accounting Malaysia. They provide a comprehensive range of services, including company incorporation in Malaysia and SSM registration, and ensure compliance with all applicable laws and regulations. Outsourcing these services to a professional service provider allows businesses to focus on their core operations while maintaining compliance with the law.
Seek Professional Assistance for Compliance
Understanding the employment laws in Malaysia is crucial for companies to operate legally and maintain industrial harmony. Compliance with the law helps protect employees’ rights and prevent legal complications for businesses. Additionally, seeking professional assistance from a corporate service provider like 3E Accounting Malaysia can ensure compliance with the law while allowing businesses to focus on their core operations. Don’t take risks with compliance – seek professional assistance today!
“Compliance with the law helps protect employees’ rights and prevent legal complications for businesses.”
