A written contract of employment must be given to every employee where the employment period exceeds 1 month. The contract must include particulars of the terms and conditions of employment and notice period required to terminate it.
Wages earned must be paid not later than the 7th day after the last day of any wage period. An employee has the right to be given by an employer, at or before the time at which any payment of wages or salary is made to such employee, a written itemized pay statement.
Unless prior written approval of the Director General of the Department of Labour is obtained, female employees are not permitted to work in any industrial or agricultural undertakings between the hours of 10 o'clock in the evening and 5 o'clock in the morning.
Female employees are entitled to 60 days paid maternity leave for up to five surviving children. Subject to a minimum of RM6 per day, a female employee shall be paid her normal rate of pay.
The normal work hours of an employee shall not exceed 8 hours in one day or 48 hours in one week.
All employees are permitted to paid holiday on at least 10 gazetted public holidays in any one calendar year.
Annual leave for employee:
- less than 2 years of service 8 days of paid annual leave
- 2 to 5 years of service 12 days of paid annual leave
- more than 5 years of service 16 days of paid annual leave
Paid sick leaves for employee:
- less than 2 years of service 14 days of paid sick leave
- 2 to 5 years of service 18 days of paid sick leave
- more than 5 years of service 22 days paid sick leave
- where hospitalization is necessary, up to a maximum of 60 days paid sick leave per calendar year
The minimum payment for overtime work is 1 1/2 times the hourly rate of pay on normal working days, 2 times the hourly rate on rest days and 3 times the hourly rate on public holidays.

1.2 The Contract of Service

A contract of service can be either oral or writing.
Where an employee begins employment with an employer for a period exceeding 1 month, the employer shall give to the employee a written statement of particulars of employment.
You can provide better terms and conditions to your employee in a contract of service but not less favorable then the minimum requirements provided in the Employment Act 1955.
A contract of service shall contain particulars of :
- the date when the employment began
- the place of work or an indication of that and of the address of the employer
- the title of the job which the employee is employed to do or a brief description of the work for which a person is employed
- the commencement salary and where applicable other allowances and bonus
- any terms and conditions relating to :
  - probation period
  - hours of work
  - entitlement to holidays, including public holidays
  - overtime pay and leave in lieu
  - incapacity for work due to sickness or injury, including any provision for sick pay and medical bills
  - EPF and SOCSO schemes
- the length of notice which the employee is obliged to give and entitled to receive to terminate the contract of service or a clause on the manner in which the contract of service may be terminated.
- In any circumstances, a wage period shall not exceed 1 month. Where the wage period is not specified in the contract of service, the wage period shall be deemed to be 1 month.
- Where the period of notice of termination is not specified in the contract of service , the notice shall be as follows :
  - 4 weeks notice - has been employed for less than 2 years
  - 6 weeks notice - has been employed for 2 years or more but less than 5 years
  - 8 weeks notice - has been employed for 5 years or more
- A written contract of service with particulars of the terms and conditions must be given to all employees on or before the commencement of an employment. the names of employer and employee

1.3 Understanding of Probation

Probation is a period during which the employer monitors the employee's performance also known as a working test period.
The probation period is normally spelt out in the contract of service or letter of appointment.
If an employer deems it necessary, probationary period can be extended.
During the probation period, an employer has the right to terminate the service for poor performance, misconduct, lacks the necessary aptitude or skill required in the position or under other similar conditions. Termination under these conditions may be without notice.
Upon satisfactory completion of the probation period, the employee must be informed in writing by the employer stating revised wages and other terms and conditions where applicable.

1.4 Payment of Wages to Employee

Wages less any lawful deductions are payable not later than the 7th day after the end of wage period.
Where a wage period is not specified in the contract of service, the wage period shall deemed to be 1 month. A wage period shall not exceed 1 month.
Where an employer wishes to extent the payment of wages time, permit must be obtained from Director General of Department of Labour.
Where an employee terminates the contract of service under normal termination, wages to such employee shall be paid not later than the day when the contract of service is terminated.
An employer has the right to deduct the following items from an employee's wages without the employee's permission :
- Overpayments made by mistake during the immediate preceding three months from the month in which deductions are to be made
- Indemnity due to the employer under Section 13(1) Recovery of advances of wages provided not interest is charged on the advances
- EPF, SOCSO contributions, income tax and other items as authorized by law.
An employee has the right to be given by an employer, at or before the time at which any payment of wages is made to him, a written itemized pay statement. The statement shall contain particulars of the gross amount of wages, the amounts of any variable any fixed deductions from the gross amount and the purposes for which they are made such as EPF, SOCSO contribution and income tax, and the net amount of wages payable.

1.5 Leave Entitlement of Employee

An employee shall be permitted to annual leave leave of not less than the following :
- 2 years service - 8 days for each year of service
- more than 2 years but less than 5 years service - 12 days for each year of service
- 5 years or more service - 16 days for each year of service
Where an employee has not completed 12 months of continuous service with the same employer, such employee's entitlement to paid annual leave shall be proportioned to the number of completed months of service.
An employee is not permitted to annual leave due to the following :
- if absent from work without the permission of the employer and without reasonable excuse for more than 10 per centum of the working days during the 12 months of continuous service in respect of which such employee entitlement to such leave accrues.
- if dismissed after due inquiry
An employee shall be permitted to paid sick leave of not less than the following :
- less than 2 years service - 14 days in each calendar year
- more than 2 years but less than 5 years service - 18 days in each calendar year
- 5 years or more service - 22 days in each calendar year
- hospitalization is necessary as certified by a registered medical practitioner - 60 days in each calendar year
An employee is not permitted to paid sick leave for any period during which the employee is receiving periodical payments under Workmen's Compensation or SOCSO.

1.6 The Maternity Right of Female Employee

A female employee is entitled to maternity leave for a period of not less than the eligible period of 60 consecutive days and maternity allowance in respect of the eligible period.
Maternity leave period may commence anytime within 30 days before her confinement but should not be later than the day immediately following her confinement.
A female employee is qualified for maternity allowance if she fulfills certain conditions. She shall have less than 5 surviving children and has been employed for at least 90 days in the 4 months immediately before her confinement.
Where a female employee is employed on a monthly pay rate, maternity allowance is based on her monthly wages. Otherwise the maternity allowance is the ordinary rate of pay for one day or RM6 per day whichever is higher for 60 consecutive days.
Maternity allowance shall be paid in the same manner as if such allowance is wage and is payable not later than the 7th day after the last day of any wage period.
A female employee is not entitled to rest day and paid sick leave benefits during maternity leave.

1.7 The Working Hours and Rest for Employee

An employee shall be entitled to at least 1 whole day of rest day in a week.
During temporary disablement under Workmen's Compensation Act 1952 or Employees Social Security Act 1969, an employee shall not be entitled to rest day benefit.
An employee shall not work on normal hours exceeding 8 hours a day excluding a period of rest, 5 consecutive hours of work without a period of rest of not less than 30 minutes and 48 hours in a week.
Under certain circumstances and mutual agreement, hours of work can exceed 9 hours a day but it cannot exceed 48 hours in a week.
Where an employer requires an employee to work overtime which means to carry out work in excess of the normal hours of work per day, the hours of overtime shall not exceed a total of 104 hours in a month.
Your overtime pay shall not be less than 1.5 times the hourly rate of pay on normal day's work, 2 times the hourly rate of pay on rest day's work and 3 times the hourly rate of pay on public day's work.
Under the following circumstances, an employer may also require an employee to work on a rest day :
- accident
- actual or threatened in the workplace
- work which is essential to the life of the community
- work which is essential to the defence or security of the country
- urgent work need to be done to the machinery or plant
- an interruption of work which was impossible to foresee
- work to be performed by employees in any industrial undertaking essential to the economy of Malaysia or any essential service as defined in the Industrial Relations Act 1967.
Where an employee is employed on a daily, hourly or other similar rate of pay and required to work on a rest day or holiday, such employee shall be paid one additional day wages if the work does not exceed half the normal hours of work or two additional days wages at the ordinary rate of pay if such employee works more than half but does not exceed the normal hours of work.
In the event of an employee being employed on a monthly rate of pay and being required to work on a rest day, such employee shall be paid for work of wages equivalent to half the ordinary rate of pay for work done on the day if the work does not exceed half the normal hours of work or 1 day wages at the ordinary rate of pay for work done on that day if such employee works more than half but does not exceed the normal hours of work.
An employee shall be informed of rest day and a roster for the rest day shall be prepared by the employer for that purposes.
An employee shall also be entitled to paid holidays of not less than 10 days in a year. An employee who is required to work on holiday shall be paid 2 additional days wages at the ordinary rate of pay.

1.8 The Minimum Age of Employee

In Sabah, an employer is prohibited from employing a child under 14 years to work in construction, manufacturing, transportation, mining sector or other places such as restaurants, coffee shops, bars, hotels or offices.
In Sarawak, no young person under the age of 16 years shall be employed on underground work in any time.
In Peninsular Malaysia, under the Children and Young Persons (Employment) Act 1966 (Act 350), children under the age of 14 years are
- only allow to work between 7 AM until 8 PM
- not allow to work for 3 consecutive hours without a period of rest. Period of rest shall be at least 30 minutes
- not allow to work more than 6 hours a day. If attending school, total working and schooling hours shall not be more than 7 hours a day
and can only be designated by the employer to carry out
- light activities in family business or other jobs authorized by the government
children between the age of 14 and 16 years are
- only allow to work between 7 AM until 8 PM
- not allow to work for 4 consecutive hours without a period of rest. Period of rest shall be at least 30 minutes
- not allow to work for more than 7 hours. If attending school, total working and schooling hours shall not be more than 8 hours a day
- not allow to commence work with less than 12 rest hours a day
and can only be designated by employer to
- carry out light activities which are reasonably believed to be in accordance to their abilities
- be a domestic servant or maid
- work in an appropriate industry
- engaged in any capacity in any vessel under the guardians of their parents.
An employer who fails to comply with the above has committed an offence under the Act and the penalty upon conviction shall be a fine up to RM2,000 or jail term not exceeding 6 months or both.

2.1 The Circumstances a Contract of Service be Terminated by Either Employer or Employee

Where a contract of service is considered broken, an employer can dismiss an employee. A contract of service is considered to have been broken when an employee has been absent from work for more than 2 consecutive working days without prior leave from the employer or without informing or attempting to inform the employer at the earliest opportunity during such absence with reasonable excuse.
An employer may terminate the contract of service where the employee is found guilty of misconduct, misdemeanor or negligence.
An employee has the right to terminate the contract of service, where an employer fails to pay wages within seven days after the wages period.
A contract of service can also be terminated without notice :
- by paying to the other party or indemnity in lieu of notice
- if there is a willful breach by the other party of a term or condition of the contract of service
Where the contract of service has expired or work being completed, the contract may also be terminated. Written notice being given by either party may also terminates a contract of service

2.2 Notice Period Required Terminating a Contract of Service

An employee may resign by giving notice of resignation or termination to the employer to terminate the contract of service. An employer may also dismiss an employee by giving notice of termination to such employee. In both situation, the length of notice shall be the same pursuant to the contract of service.
Where the period of notice of termination is not specified in the contract of service, the notice period shall be as follows :
- 2 years or more but less than 5 years of service - minimum 6 weeks
- 5 years of service or more - minimum 8 weeks less than 2 years of service - minimum 4 weeks

2.3 Termination without Cause Or Excuse by My Employer

Where you have been terminated without cause or excuse by your employer, you can enforce your civil right and remedies for any breach or non-performance of the contract of service by any suit in court or you can file in a written representation within 60 days of the dismissal to the Director General of Industrial Relations Department to be reinstated pursuant to section 20 of the Industrial Relations Act, 1967.
The Industrial Relations Act 1967 provides for the regulation of relations between employers and employee and their trade unions and the prevention and settlement of disputes between employer and employee which is connected with the employment or non-employment or the terms of employment or the conditions of work of such employee.
Where you are a female employee and your employer is found guilty of terminating you during your maternity leave, your employer shall be liable, on conviction to a fine not exceeding RM2,000.

2.4 The Circumstances an Employee as Not Entitled to Termination or Lay-Off Benefits

There are certain circumstances under which an employee is not entitled to termination or layoff benefits :
- Employed for less than 12 months on date of termination
- The employee voluntarily terminates the contract of service
- Where the employee commits misconduct inconsistent with the fulfillment of the expression or implied condition of service after due inquiry.
- Where the employee attains the age of retirement as stipulated in the contract of service
- The contract of service is renewed
- The employee re-engaged on terms and conditions not less favorable than his previous contract
- 7 days before the date of termination, the employer has offered to renew the contract on no less favorable terms
- The employee leaves the services without paying the employer the indemnity due contract of service after receiving due notice of termination of the contract or without employer's prior consent
An employer shall pay termination or layoff benefits to an employee not later than 7 days after the termination.

2.5 Actual Amount of Layoff Benefits Payable

Under the Employment (Termination and Layoff Benefits) Regulations 1980, an employee will be entitled to layoff benefits not less than the following :
- 1 to 2 years service - 10 days wages for each year service
- more than 2 years but less 5 years service - 15 days wages for each year service
- 5 years service or more - 20 days wages for each year service
For an incomplete year, the calculation will be on a pro-rata basis to the nearest month.

3.1 The Compensation

Workmen's compensation is a compensation for injury to an employee or worker arising out of and in the course of employment that is paid to the worker or dependants.
The employer will have to purchase a workmen's compensation insurance for workmen's compensation claims by injured employees or workers.

3.2 The Law Governing The Workmen's Compensation in Malaysia

The Workmen's Compensation Act 1952.

This Act provides for the compensation payment to an injured employee or worker arising out of and in the course of employment or contracting occupational disease.
Where the employee or worker dies in the event of fatal accident or contracting an occupational disease or in the course and arising out of performing his duty or work, the Workmen's
Compensation Act 1952 provides for the compensation payment to the worker's dependants.
This Act is administered by the Department of Labour and applies throughout Malaysia.

3.3 Individual Covered Under The Workmen's Compensation Act 1952

Malaysian workers are no longer covered under the Workmen's Compensation Act 1952 with effective from 1st July 1992. Local workers will be covered under the Employees Social Security Act 1969.
Only foreign workers are covered under this Act in respect of compensation for employment injury as well as non-employment injury vide Workmen's Compensation (Foreign Worker's Scheme) (Insurance) Order 1993.
This Act applies to foreign workers
- whose earnings are not more than RM500 per month and

3.4 Foreign Worker Insured by Employer

Under the Foreign Worker's Scheme, an employer of foreign workers is responsible to pay an insurance premium of RM86 per year per worker.
An employer is not allowed to deduct the earnings of a worker for the payment of insurance premium. An employer found guilty of such action, shall be liable, on conviction to a fine of RM5,000 or to imprisonment for a 1 year term or to both.
There are 11 insurance companies being selected as insurer to issue insurance policy under the Foreign Worker's Scheme.
Employer can purchase such insurance from any of the insurance companies listed :
- Amanah General Insurance Berhad
- Arab Malaysian Assurance Berhad
- London & Pacific Insurance Company Berhad
- Mayban Assurance Berhad
- MNI Takaful Sdn. Bhd.
- Malaysia British Assurance Berhad
- Malaysian Assurance Alliance Berhad
- Malaysia National Insurance Berhad
- The Pacific Insurance Berhad
- Syarikat Takaful
An employer found guilty of not buying an insurance for workmen's compensation, shall be liable, on conviction to fine of RM20,000 or imprisonment for a term of 2 years or to both.

3.5 What Should Be Done If A Worker Is Involved in an Accident

Each worker involved in an accident must inform the employer within 7 days from the date of such accident except in the even of fatal accident.
An employer must notify the nearest Department of Labour from the place of accident in writing. Such notice must be submitted within 10 days from the date of accident.
An employer shall ensure that all information is with full details and supporting documents are enclosed such as medical certificate or death certificate.
An employer must ensure that compensation settlement as determined by the Department of Labour are paid direct to the injured worker by depositing such payment to the Department of Labour as directed.
However, compensation settlement cannot be paid direct to the wife, children or dependants, but to be deposited to the Department of Labour concerned.
Failure to notify the Department of Labour in the event of an accident is an offence and the employer shall be liable, on conviction to a fine of RM5,000 for the first offence and RM10,000 for the second offence.

4.1 What Is Sexual Harassment?

Sexual harassment means any unwelcome verbal, non-verbal, visual, psychological or physical conduct of a sexual nature that might, on reasonable grounds, be perceived by the victim as placing a condition of a sexual nature on his or her employment because of his or her sex.
Sexual harassment may also consist of an unwelcome verbal, non-verbal, psychological or physical conduct of sexual nature that might, on reasonable grounds, be perceived by the victim as an insult or humiliation, or a threat to his or her well-being, and has no connection with his or her employment.
Sexual harassment in the office includes work related harassment which happens outside the office. Such work related harassment may includes situations taking place at work-related social gathering or functions, conferences, workshop or training sessions and during work assignments outside the office.
Sexual harassment in the course of work-related travel is also considered sexual harassment in the office. Where sexual harassment occurs as a result of employment responsibilities or relationship over the phone and through electronic media, it is also considered sexual harassment in the office.

4.2 Types of Sexual Harassment

There are two categories of sexual harassment, namely sexual coercion and sexual annoyance.

4.2.1 Sexual Coercion

It is known as quid pro qul sexual harassment in the United States.
Sexual Coercion is a type of harassment which has direct results in some consequence to the victim's employment. It is an employment discrimination.
Sexual coercion is under a condition of employment, where an openly or implicitly offer in keeping a job or getting a promotion is made by a supervisor to an employee in exchange for sexual favors. Such person normally has the power over promotion or raise of the employee.
In sexual coercion, promotion and favorable job benefits will follow if an employee takes the advantage and consented to sex. On the contrary, if the employee rejects, the job benefits are denied.

4.2.2 Sexual Annoyance

It is also known as hostile environment sexual harassment.
Sexual annoyance is a demeaning and unwelcome sexually related behavior that is offensive, hostile or intimidating to the victim, but has no direct connection to any job benefits. However, the annoying behavior creates an offensive working environment which affects the victim's ability to continue working.
Sexual annoyance includes sexual harassment by an employee against a co-employee. Similarly, sexual harassment by a company's customer against an employee also falls into this category.

Nevertheless, the definition of subjective words like unwelcome, offensive and annoying still leaves for individual interpretation by courts.

4.3 The Differences Between Verbal, Non-Verbal, Visual, Psychological And Physical Harassment

Verbal harassment is in oral form and includes uncomfortable and offensive teasing, joking, questioning, jesting or making suggestive remarks or sounds, or verbal repartee.
Non-verbal harassment a leer with indecent overtone, sexual activity or desire denoted by hand signal, lips licking or food eating and persistent flirting.
Visual harassment covering the wall with pin-up, calendars, drawings, photographs of naked and scantily clad women or other sex-based materials and writing sex-based letter. Sexual exposure also falls under this form of sexual harassment.
Psychological harassment harms a person's psychological well being and includes oppressively constant proposals for dates, repeated undesirable physical intimacy or social invitations.
Physical harassment includes distasteful action such as touching of an intimate body part, patting, pinching, stroking, brushing up against the body, hugging, kissing, fondling and sexual assault.
All forms of sexual harassment are behavior that elicit sexual attention.

4.4 Law in Malaysia to Deal Specifically with Sexual Harassment

There is only one law in existence that comes close to dealing with the issue of sexual harassment in Malaysia - Penal Code, section 509.
The Penal Code, section 509 provides that :
"Whoever, intending to insult the modesty of any women, utters any words, makes any sound or gesture or exhibit any object, intending that such word or sound shall be heard, or such gesture or object shall be seen by such woman, shall be punished with imprisonment for a term which may extend to 5 years or with fine, or with both".
This existing law deals more with physical aspects. Sexual harassment cases are currently handled by the police and claims are made under the Penal Code, section 509.
Nevertheless, the Industrial Relations Act 1967, may be amended to provide for action against sexual harassment perpetrators. This amendment is to curb sexual harassment.
In the meantime, the Ministry of Human Resources is using its influence to encourage employers to adopt the Code of Practice against sexual harassment and an internal mechanism to prevent sexual harassment at the workplace. This code was introduced in 1999.
The Code of Practice outlines the statement of purpose, legal definition of harassment, descriptions of behavior that constitutes harassment, how employees should handle harassment, how the company handles complaints, what kind of disciplinary action and name and phone numbers to lodge a complaint.
Majority of businesses in Malaysia do not have any form of policy against sexual harassment.

4.5 Chances Of Seeing Justice Being Done

Depending on the sensitivity and efficiency of your management, there are rather good chance that your case will be taken seriously is you have been sexually harassed. However, whether justice can been seen meted out is another matter
By bringing up a sexual harassment case, you and the harasser will be cross-examined thoroughly.
The difficulties in proving an allegation is the main reason for few cases on sexual harassment. Thus, witnesses and evidence are your most important "assets".
Sexual harassment case may face years of expensive litigation. Furthermore, you will be forced to speak publicly about embarrassing events, be shunned by your co-employee and discriminated against by supervisors. These are the main reasons most women being sexually harassed don't sue or make any sort of formal complaint.
In any sexual harassment case, you must promptly report to your management and the police. Long delay in reporting such case is among the problems faced by the police in sexual harassment probe as it may be difficult to determine the criminal intent.
Since the current Penal Code, section 509 deals more with physical aspects of sexual harassment, not all sexual harassment perpetrators may be successfully brought to justice.

4.6 What Should I Do If I Am Being Sexually Harassed ?

You should take the following steps, if you are being sexually harassed at your workplace.
Immediately object the behavior and make clear to the harasser that you don't like what he is doing.
To avoid any miscommunication, make sure you be clear and direct. Don't apologize or smile.
Keep written record of each incident. Describe the incident in full detail and note the date, time, witnesses and evidence if any and place the harassment happens. Look around you to see if there are any witnesses and evidence. They are your most important "assets". However, not all witness will agree to go on the stand. To some extend, intense pressure from you and helpful colleagues may help.
Tell someone immediately after it happens. Next, try to seek their advice and let them know exactly what happened. It will be better, if you can speak to another manager about it.
Make a formal complaint. If your company has procedures for resolving sexual harassment complaints, go through the channel. If it doesn't, speak to your boss or if he is the problem, speak to his superior. If there's no one you feel safe talking to, or if your complaint is ignored, you can make a police report. You might then want to consider hiring a lawyer to pursue a civil suit.

5.1 What is Occupational Safety and Health Act?

The Occupational Safety and Health Act is an Act which provides the legislative framework to secure the safety, health and welfare among all Malaysian workforce and to protect others against risks to safety or health in connection with the activities of persons at work.
This Act was gazetted on 24th February 1994 and may be cited as the Occupational Safety and Health Act 1994. This Act is a practical tool superimposed on existing safety and health legislation.
The aims of this Act are :
- to secure the safety, health and welfare of persons at work against risks to safety or health arising out of the activities of persons at work
- to protect person at a place of work other than persons at work against risks to safety or health arising out of the activities of persons at work
- to promote an occupational environment for persons at work which is adapted to their physiological and psychological needs
- to provide the means whereby the associated occupational safety and health legislation may be progressively replaced by a system of regulations and approved industry codes of practice operating in combination with the provisions of this Act designed to maintain or improve the standards of safety and health.
The provision of the Occupational Safety and Health Act 1994 are based on the self-regulation scheme. Its primary responsibility is to ensure safety and health of work lies with those who create the risks and those who work with the risks.
Through self-regulating scheme that is designed to suit the particular industry or organization, this Act also aims to establish effective safety and health organization and performance.
The concept of self-regulation encourages cooperation, consultation and participation of employees and management in efforts to upgrade the standards of safety and health at the workplace.
The Occupational Safety and Health Act 1994 is enforced by the Department of Occupational Safety and Health (DOSH), a government department under the Ministry of Human Resources Malaysia.
Department of Occupational Safety and Health (DOSH) will ensure through enforcement and promotional works that employers, self-employed persons, manufacturers, designers, importers, suppliers and employees always practise safe and health work culture, and always comply with existing legislation, guidelines and codes of practice.
Department of Occupational Safety and Health (DOSH) will also formulate and review legislation, policies, guidelines and codes of practice pertaining to occupational safety, health and welfare as a basis in ensuring safety and health at work.
Department of Occupational Safety and Health (DOSH) is also the secretariat to National Council for Occupational Safety and Health, a council established under section 8 of the Occupational Safety and Health Act 1994.
The National Council for Occupational Safety and Health shall have power to do all things expedient or reasonably necessary for or incidental to the carrying out of the objects of this Act.

5.2 The Act Affection

All employers with more than 5 employees are required by the legislation to formulate a written Safety and Health Policy.
The object of the Safety and Health Policy is to demonstrate the company's commitment and concern to ensure safety and health at place of work. When making decision or performing work activities of the organization, issues on safety and health stated in the policy must be taken into account.
The Occupational Safety and Health Act 1994 specifies the general duties of employers, self-employed persons, manufacturers, designers, suppliers and employees.
Among the provisions of the Act is the establishment of the safety and health committee, the appointment of a safety and health officer and the enforcement, investigation and offenses.

5.3 The Written Safety and Health Policy

The following describes the essential ingredients for the written Safety and Health Policy as required by law.
The written policy is divided into 3 main parts, namely :
- General Policy Statement
- Organization
- Arrangements
The General Policy Statement concerns with the overall intent of the employer to look after the safety and health of the workforce. This statement can be simple and brief. Essentially it should :
- point out that the management accept responsibility for safety and health of the employees and others who may be affected by the work activities
- a summary of the policy's goals
- emphasize the importance of safety and health to overall business performance
- include a reference to other parts of the policy document which go into more details and
- be dated and signed by the person at the top management in the organization such as the Chairman or Managing Director.
The second part of the policy on Organization should describe the safety and health responsibilities. This is primarily about the role of each person. Among others it should include :
- the list of safety and health responsibilities of all levels of management
- the role of employees in the implementation of the policy. It is the duty of each employee not to endanger himself or others by his actions or omissions, and to cooperate in all measures provided for his safety and health.
- the structure and role of safety and health committees and other in-house safety and health organization, if any.

The Arrangements or final part of the written policy concerns with practical systems and procedures.

It deals mainly with potential hazards and measures to be taken to solve the problem. Essentially it should specify detailed arrangements for ensuring that the policy is being implemented including :

the arrangement for training and instructions
information about hazards that may be in certain processes, the control measures and the ways in which employees should cooperate for their own safety and health
explain the company's safe system of work including procedures and rules
scheme for the issuance, use and maintenance of personal protective equipment (P.P.E.)
the procedure for investigation and reporting of accidents and
emergency measures such as first aid and fire arrangements.

It is important that contents of the policy be made known to employees during induction course and job training. The policy statement should be displayed at strategic locations in the workplace.

WHAT ARE MY DUTIES AS AN EMPLOYEE?

It shall be your duty as an employee while at work :
- to take reasonable care at work for the safety of yourself and other persons
- to cooperate with your employer or any other person in the discharge of any duty, under the Act or Regulations
- to wear or use at all times any protective equipment and clothing provided by your employer for the purpose of preventing risks to your safety and health
- to comply with any instruction or measure on occupational safety and health as required under the Act or Regulations
If you contravene this provision of the Act, you shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding RM1,000 or to imprisonment for a term not exceeding 3 months or to both.
If you intentionally, recklessly or negligently interferes with or misuses anything provided or done in the interests of safety, health and welfare in pursuance of the Act, you shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding RM20,000 or to imprisonment for a term not exceeding 2 years or to both.

WHAT ARE THE DUTIES OF A SAFETY AND HEALTH OFFICER?

A safety and health officer shall advise employer on the measures to be taken in the interests of safety and health at place of work.
Safety and health officer shall inspect place of work to determine any hazard liable to cause bodily injury and to investigate any accident, near miss, dangerous occurrence, occupational poisoning or disease.
It is also the duty of a safety and health officer to assist employer or safety and health committee in organizing and implementing Occupational Safety and Health programme.
Other duties of a safety and health officer include
- to become the secretary of a safety and health committee
- to assist the safety and health committee in inspections
- to collect, analyze and maintain statistics
- to assist any officer in carrying his duty under the Act and regulations and
- to carry out any other instruction made by the employer on any matters pertaining to safety and health at workplace.

IS IT COMPULSORY TO ESTABLISH A SAFETY AND HEALTH COMMITTEE AT WORKPLACE?

Pursuant to section 30 of the Occupational Safety and Health Act 1994, every employer shall establish a safety and health committee at workplace if there are 40 or more persons employed at the place of work.
A person who contravenes the above provisions shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding RM5,000 or imprisonment for a term not exceeding 6 months or to both.
The functions of the safety and health committee include :
- to keep under review the measures taken to ensure the safety and health of persons at the place of work
- investigate any matter at the place of work which a member of the committee or a person employed thereat considers is not safe or is a risk to health and which has been brought to the attention of the employer
- attempt to resolve any matter referred to and if it is unable to do so, shall request the Director General of Occupational Safety and Health to undertake an inspection of the place of work for that purpose.

WHAT ARE THE DUTIES OF AN OCCUPATIONAL SAFETY AND HEALTH OFFICER IF HE IS TO CONDUCT AN INSPECTION AT A WORKPLACE?

An occupational safety and health officer shall take all reasonable steps to notify the employer and the safety and health committee of the entry.
The occupational safety and health officer shall be produced on demand to the employer or any person in charge of a place of work a certificate of authorization issued by the Director General of the Occupational Safety and Health.
Upon concluding an inspection, an officer shall give to the employer and the safety and health committee information with respect to his observations and any action he proposes to take in relation to the place of work.
Where an officer proposes to take and remove a sample from a place of work for the purposes of analysis, he shall notify the employer and the safety and health committee and after having taken the sample he shall where possible
divide the sample taken into as many parts as are necessary and mark and seal or mark and fasten up each part in such a manner as its nature will permit
if required by the employer or the safety and health committee, deliver one part each to the employer and the safety and health committee
retain one part for future comparison and
if an analysis of the sample is to be made, submit another part to an analyst for analysis.

CAN AN OCCUPATIONAL SAFETY AND HEALTH OFFICER ENTER A PLACE OF WORK WITHOUT SEARCH WARRANT?

Where an officer is satisfied upon information received that he has reasonable grounds for believing that, by reason of delay in obtaining a search warrant, any article or part thereof in a place of work or residential place used to commit or intended to be used to commit an offence under the Occupational Safety and Health Act 1994 or any regulation made thereunder is likely to be removed or destroyed, he may enter the place of work or residential place without a warrant and seize or seal the article or part thereof found therein.
In exercising his powers, if it is necessary so to do, an officer may :
- break open any outer or inner door of a place of work or residential place and enter thereinto
- forcibly enter the place and every part thereof
- remove by force any obstruction to entry, search, seizure and removal as he is empowered to effect and
- detain every person found in the place until the place has been searched.
However, an officer seizing any article or part thereof shall prepare a list of the things seized and forthwith, or as soon as is practicable, deliver a copy of the list signed by him to the occupier, or his agent or servant present in the premises, and if the premises are unoccupied the officer shall, whenever possible, post a list of the things seized on the premises.

6.1 What Is a Dispute ?

A dispute being referred to as trade dispute under the Industrial Relations Act 1967 means any disagreement between the employer and workman or employee which is connected with the employment or non-employment or the terms of employment or the conditions of work of such workman or employee leading to industrial action.
The Industrial Relations Act 1967 governs the relationship between employers and workmen or employees and their trade unions and generally deals with trade disputes.

6.2 The Industrial Relations Act 1967 Provides

The Industrial Relations Act 1967 is applicable throughout Malaysia and provides for the regulation of relations between employers and workmen or employee and their trade union and the prevention and settlement of trade disputes.
This Act emphasizes on direct negotiation between employers and workmen or employees and their trade unions to settle their differences and to regulate their collective relationship and to settle any dispute arising therefrom through their own effort and through mutually agreed procedures with minimal government intervention.
Where the government intervention is necessary, such intervention will be confined mainly to providing a legal framework to which the parties can turn to if they so wished.
Under the Industrial Relations Act 1967, the legitimate rights of employers and workmen or employees and their trade unions are protected.
This Act also provides the procedure relating to submissions of claims for recognition and scope and representation of trade union and collective bargaining.
Under this Act, matters relating to promotion, recruitment, dismissal, transfer, retrenchment, reinstatement and allocation of duties and prohibition of strikes and lockouts over any of these matters are not allowed to be included in the proposal for collective bargaining.
Where direct negotiation between employers, workmen or employees and their trade unions fails, this Act provides for speedy and just settlement of trade disputes by conciliation or arbitration
This Act provides the power to the Ministry of Human Resources to intervene and to refer at any stage any trade dispute to the Industrial Court for arbitration.
After a trade dispute has been referred to the Industrial Court and on any matter covered by a collective agreement or by an award of the Industrial Court, employees or workmen are not allowed to declare strike or lockout.
Collective agreement means an agreement in writing concluded between an employer or a trade union of employers on one hand and a trade union of workmen or employees on the other, relating to terms and conditions between the two such parties.
This Act makes it an offence for any person to give financial aid in direct furtherance or support of any illegal strike or lockout. Such offences are seizable in nature and no bail shall be granted.
Peaceful and orderly picketing in furtherance of a trade dispute is permitted under Part IX, section 20 of the Industrial Act 1967 provided that such picketing is carried out at or near the place where a workmen or employee works and where a trade disputes exists. It will be illegal however for one or more persons to attend at or near a place of employment where a workmen works if such attendance is, by nature of its manner or number, calculated to intimidate any person in the place or to obstruct the approach thereto or egress therefrom or to lead to a breach of the peace.
Award means an award made by the Industrial Court in respect of any trade dispute or matter referred to it or any decision or order made by it under the Industrial Relations Act 1967. An award of the tribunal is final and legally binding on the parties to the dispute.
Unless approved by the Ministry of Human Resources, collective agreement cannot contain better terms of employment than those stipulated under the Employment Act 1955.
Part IV, section 15 of the Industrial Relations Act 1967 provides the protection of pioneer industries during the initial years of their establishment for a period of at least 5 years from the date of commencement of operation in Malaysia against any unreasonable demands from a trade union.

6.3 What Are the Cases That I Can Refer to Industrial Relations ?

You may refer any trade disputes, unfair labour practices or trade union activities to the Industrial Relations Department such as unlawful and constructive dismissal, retrenchment, transfer, promotion, unilateral change in terms and conditions of service and victimization in connection with trade union activities.
Constructive dismissal refers to a situation where you as an employee being dissatisfied with the manner in which you are being treated by your employer such as where there is an unilateral change in the terms and conditions of service, you tender your letter of resignation and pleads that you has been constructively dismissed.
Part X, section 59 of the Industrial Act 1967 makes it an offense to dismiss a workman or employee or injure or threaten to injure a workman or employee during employment or alter or threaten to alter the position of the workman or employee to prejudice under certain circumstances.
An employer contravening to the above section is liable on conviction to imprisonment for a term not exceeding 1 year or a fine not exceeding RM2,000 or to both.
Any complaint of contravention of any of the above may be lodged in writing to the Director General of Industrial Relations Department.

6.4 Complaint to the Industrial Relations

Before you make a formal complaint to the Industrial Relations Department, you should try to resolve the dispute by direct negotiation.
In the event of a unresolved conflict, either party - employer or employee - may then report the dispute to the nearest Industrial Relations Department at your area upon which conciliation proceedings may be initiated. You do not have to pay any fees.
Conciliation has always been the most effective method of resolving disputes.
The process of conciliation involves a number of meetings conducted either separately or jointly.
Where the matter is not resolved through conciliation the dispute is then referred to the Minister of Human Resources who will exercise his discretionary powers to refer the dispute to the Industrial Court or otherwise.
When a reference is made to Industrial Court, the court will hear, decide and hand down awards relating to trade disputes referred to it. An award can be in lieu awards proper compensation or reinstatement of the employee to his former position.

6.5 Unlawfully Dismissed

If you feel that you have been dismissed without just cause or excuse by your employer, firstly you must write in to the Director General Industrial Relations Department at your nearest former place of employment to make a representation within 60 days of your dismissal.
Among others, your letter must have the following information :
- states that the remedy you are seeking is reinstatement
- your name, identity card number and address and telephone contact if any
- name, address and telephone number of your former company
- occupation
- date of appointment
- date of dismissal
- reasons for your dismissal
- whether you are a member of a union or otherwise
You may also attach copies of other supporting documents such as letter of appointment and termination letter.
The Director General Industrial Relations will try to resolve the case through conciliation by inviting both the employer and you for a meeting. You do not have to pay any fees.
The conciliation officer will explain the principles and practices law that are applicable including judgment of the courts, both the Industrial Court and civil courts, so that both parties are aware of their rights and liabilities.
If there is a failure to resolve the case through conciliation, the Director General Industrial Relations will then refer your case to the Minister of Human Resources, who will refer the matter to the Industrial Court for adjudication and for an award if he thinks fit.
Unlawful dismissal case cannot be brought directly to the Industrial Court. This type of case must be referred to the Industrial Court by the Minister of Human Resources.
The Industrial Court upon the matter being referred to by the Minister of Human Resources, then goes to consider whether the your termination of employment is unlawful or whether it is justified.
Where the Industrial Court rules that the termination is unlawful, the Court then makes an "Award" to reinstate you to your former position or in lieu awards proper compensation.
The normal remedies in a cases of dismissal is the reinstatement into your former employment and award of back waged from dismissal date to the final date of hearing subject to maximum period of 24 months.
The Industrial Court may also order compensation in lieu of reinstatement base on the formula on 1 month salary for every year of service.

6.6 Presenting in a Dispute Case

During conciliation proceedings, you cannot be represented by an advocate, adviser or consultant pursuant to section 19(B)(2) of the Industrial Relations Act 1967.
You have to represent yourself.
If you are a member of a trade union, your trade union officers or an employee of your trade union can represent you.
You can also be represented by an official of an organization of workmen or employee not being a trade union such as the MTUC.
However, section 27(1) of the Industrial Relations Act 1967 states that in any proceedings before the Court a party may :
- be represented by an officer or employee of the trade union, where the party is a trade union.
- appear himself personally or be represented by his duly authorized, employee or an officer or employee of the trade of employers of which he is a member, where the party is an employer.
- be represented by an officer or employee of the trade union, where the party is a workmen or employer appear himself personally or where he is a member of a trade union of workman or employee.
- be represented with the permission of the President or the Chairmen, by an advocate or notwithstanding anything to the contrary contained in any written law relating to the registration of trade unions, by any official of an organization (not being a trade union) of employers or workmen, as the case may be registered in Malaysia, where the party is a trade union or an employer or a workman or employee.
In Industrial Court proceedings, you can get a qualified lawyer to represent you in court. It will be more helpful in your case.

6.7 Appeals against Industrial Court Decision

A decision, order or award of the Industrial Court is conclusive and final and cannot be challenged, appealed against, reviewed, quashed or called in question in any court.
However, by way of certiorari on grounds of error of law or excess of jurisdiction, the decision or award made by the Industrial Court can be challenged in the High Court

7.1 What Is Pension ?

Pension means money paid under given conditions to a person following retirement or to surviving dependants.
The Pensions Act 1980 which came into force on the 1st January 1976 is the governing act for pensions benefits in Malaysia. This Act provide for the administration of pensions, gratuities and other benefits for officers in the public service and their dependants.
Under the Pensions Act 1980, pension, gratuity or other benefit granted shall be charged on the Federal Consolidated Fund.
Pension does not include any cash award granted in lieu of accumulated vacation leave to an officer whose salary is not paid out of the Federal Consolidated Fund.
An officer refers to an officer of the public service or an employee of any statutory or local authority who prior to retirement or death, was service in Malaysia or in any of the territories which presently constitute Malaysia.

7.2 The Individual Entitled To Pension Benefit

In Malaysia, officers on full-time employment in the public service under given condition are entitled to pension benefits.
Public service refers to :
- the Judicial and Legal Service
- the General Public Service of the Federal Government
- the Police Force
- the Railway Service
- the Education Service
- the Joint Public Services common to the Federal Government and of one or more of the states
- the Public service of each state
- the Parliamentary service
- such other service as the Yang di-Pertuan Agong may determine to be public service for the purposes of the Pensions Act 1980
Officers in the public service
- who have opted or who are deemed to have opted for any New Scheme
- who are or were appointed under any New Scheme
- who by virtue of their option are bound by any New Scheme
and temporary officers in the public service who were appointed prior to the 1st January 1976 and who were not given the option to opt for the New Scheme which came into force from that date are entitled for pension benefits.
New Scheme is the revised salaries and terms and conditions of service of officers in the public service arising from the revision of salaries and terms and conditions of service of such officers made by the Federal Government with effect from the 1st January 1976 or from any other subsequent revision made by the Federal Government from time to time.

7.3 Circumstances Reducing or Withholding Pension

An officer who is found guilty of negligence, irregularity or misconduct may have his or her pension, gratuity or other benefit for which the office would have been eligible, be reduced or withheld.

7.4 Calculation of Pension

In case of a pension which has been calculated on the basis of reckonable service of not less than 25 years, the amount payable shall not be less than RM180 per month or any such amount as may be determined from time to time.
Officer who retires before being confirmed in his second or subsequent appointment, the last drawn salary shall be the last drawn salary of his former appointment in which he had been confirmed and he remained in his former appointment until his retirement.
A pensionable officer may, on retirement, be granted a gratuity based on 1/20 X total completed months of reckonable service X last drawn salary.

	Type of Benefit	Formula
1. (a)	Service pension to a pensionable officer	1/600 X number of months of reckonable service (subject to not more than 300 months) X corresponding last drawn salary
(b)	Service pension on retirement due to abolition or reorganization of office	1/500 X number of months of reckonable service (subject to not more than 250 months) X corresponding last drawn salary.
(c)	Service pension on retirement in the public interest	1/600 X number of months of reckonable service (subject to not more than 300 months) X corresponding last drawn salary, subject to any variation of rate imposed by the Yang di-Pertuan Agong at the time of granting the pension.
2.	Retiring allowance to a non-pensionable officer	3/4 of [1/600 X number of months of reckonable service (subject to not more than 300 months) X corresponding last drawn salary]

7.5 Who Is Deemed to Be A Pensionable Officer ?

A permanent officer may be conferred the status of a pensionable officer if he has been confirmed in his present appointment and completed not less than 10 years reckonable service.
An officer who has already been emplaced or qualified to be emplaced on the pensionable establishment under the Pensions Ordinance 1951 prior to the 1st July 1977, the Pensions Ordinance 1963 of Sabah or the Pensions Ordinance of Sarawak prior to the 1st July 1978, as the case may be, shall be deemed to be pensionable officers.
A permanent and confirmed officer who dies in service, retires on medical ground or attains the age of 45 years for :
- an officer of the fire service holding the rank of sub-officer and below
- a police officer below the rank of Assistant Superintendent of Police
- a prison officer below the rank of Superintendent
- a male nurse of a mental hospital
before completing 10 years reckonable service shall also be deemed to be pensionable officer. a woman officer

7.6 Granted a Pension

Pension shall be granted to a pensionable officer on compulsory retirement or if optional retirement after completing a period of not less than 10 years reckonable service.
Pension shall also be granted on retirement at the instance of the government on the ground of national interest or in the interest of the public service for federal and state officer.

7.7 Compulsory Retirement

An officer shall retire from the public service on attaining the age of 55 years.
Nevertheless, the above is not applicable to :
- Clerk to the House of Representatives or the Clerk to the Senate
- Officers who have retired after the coming into force of the Pensions Act 1980 but before the publication thereof
- Officers who are in service and who within 6 months after the publication of the Pensions Act 1980 have attained the age of 55 years or more.
Where an officer attains the age of 55 years, and a criminal or disciplinary proceeding which may result in his conviction or dismissal is not concluded, his service shall be deemed to have been extended beyond that age but on no-pay leave until his case is determined.
However, if the criminal or disciplinary proceeding does not result in his conviction or dismissal, he shall retire on attaining the age of 55 years and the period of service after this age shall not be reckonable service.
In the case of a federal or local federal officer or state officer, such officer may be required to retire from the public service by the Yang di-Pertuan Agong :
- on the abolition of the officer held by him
- for the purpose of facilitating improvement in the organization of the department at which the officer belongs by which greater efficiency or economy may be achieved
- on the termination of the officer's employment in the public interest where the Directory General or the State Secretary, as the case my be, is satisfied on medical evidence that the officer is incapable of discharging the duties of his officer, by reason of infirmity of mind or body likely to be permanent

7.8 Optional Retirement

An officer may apply for retirement after attaining the age of 45 years for :
- a woman officer
- an officer of the fire service holding the rank of sub-officer and below
- a police officer below the rank of Assistant Superintendent of Police
- a prison officer below the rank of Superintendent
- a male nurse of a mental hospital
Optional retirement also includes retirement after attaining the age of 50 years for a male officer other than those officers stated above.

7.9 The Pension Where an Officer Dies in Service

Where a pensionable officer dies in service, pension may be granted to the person prescribed in the regulations a derivative pension of not less than 1/5 of the deceased officer's last drawn salary and a derivative gratuity or a derivative gratuity only.
The pension granted above shall be payable for a period not exceeding 12 1/2 years from the date immediately following the date of death of the officer and thereafter the recipient, provided he is resident in Malaysia, shall continue to receive 70% of the amount granted.
Where an officer dies in the course and arising out of performing his official duty or due to a travel accident or contracting a disease to which he is exposed by the nature of his duty, derivative pension and derivative gratuity to an officers dependants may be granted in addition to the normal pension granted.

7.10 The Pension Where an Officer Dies After Retirement

Where a pensionable officer dies within the period of 12 1/2 years from the date of his retirement from the public service, pension may be granted to the person prescribed in the regulations a derivative pension equivalent to the amount of pension paid to him for a period not exceeding the difference between the period of 12 1/2 years and the retirement period of the deceased officer and thereafter such derivative period shall continue to be payable at the rate of 70% of the amount granted.
Where a pensionable officer dies after the period of 12 1/2 years from the date of his retirement from the public service, pension may be granted to the person prescribed in the regulations a derivative pension equivalent to 70% of the officer's pension.

7.11 Cease a Pension

A pension or other benefit granted under the Pensions Act 1980 to a person who is subsequently adjudged a bankrupt or declared insolvent by a Court, whether in Malaysia or elsewhere, shall cease forthwith.
When a person is discharged from his bankruptcy or insolvency, his pension or other benefit shall be restored to him with effect from the date of such discharge.
Where any person to whom a pension or other benefit has been granted is sentenced to death or any term of imprisonment by a Court, such pension or other benefit shall also cease forthwith.
The pension or other benefit shall be restored with retrospective effect in the case of a person who after conviction receives a free pardon.
If a person who has been granted a pension or other benefit under the Pensions Act 1980 has voluntarily, other than marriage, acquired citizenship of, or exercised rights of citizenship in, or has made a declaration of allegiance to, any other country other than Malaysia or has been deprived of his Malaysian citizenship, such pension or other benefit shall cease forthwith. No pension or other benefit shall be granted to the dependants under this circumstances.
A derivative pension or a derivative retiring allowance granted shall cease if the recipient is :
- a child who is receiving education in an institution of either learning but not beyond education leading to a first degree, upon completing or ceasing to receive such education or upon marriage, whichever is the earlier
- a child, other than a child who is mentally retarded or physically and permanently incapacitated and incapable of supporting himself or a child referred to above, upon marriage or upon attaining the age of 21 years, whichever is the earlier. a widow or widower, upon remarriage

7.12 Pension for Disabled Person In The Course Of Performing His Official Duty

In addition to payments made under the normal pension benefits, whenever applicable, a disability pension may be granted under the regulations where an officer, other than a contract officer is required to retire as a result of :
- sustaining an injury in the course and arising out of performing his official duty or due to a travel accident
- contracting a disease to which he is exposed by the nature of his duty
Nevertheless, injury or disease for the purpose of the above matter does not include injury or disease due to, aggravated or contributed by negligence or misconduct.

7.13 The Rate Payable for Disability Pension

Degree of Impairment	Rate Payable
Slightly impaired	One-twelfth of his salary
Impaired	One-sixth of his salary
Materially impaired	One-fourth of his salary
Totally destroyed	One-third of his salary

Where an officer who sustains a permanent injury due to a travel accident or while on duty in a security area, the disability pension payable shall be as follows :

Degree of Impairment	Rate Payable
Slightly impaired	One-eighth of his salary
Impaired	One-quarter of his salary
Materially impaired	Three-eighths of his salary
Totally destroyed	One-half of his salary

Disability pension shall be payable in addition to a pension, gratuity or other benefit granted at the time of retirement.

7.14 Is a Pension Assignable ?

Any pension, gratuity or other benefit granted under the Pension Act 1980 shall not be assignable or transferable or liable to be attached, sequestrated or levied upon in respect of any claim except for the purpose of :
- an order of a Court for the payment of periodical sums of money towards the maintenance of the wife or former wife or minor child, whether legitimate or not, of the officer to whom the pension, gratuity or other benefit has been granted. a debt due to the Federal Government or the Government of any State or a Statutory or Local Authority

8.1 What is Employment Provident Fund (EPF) ?

Employees Provident Fund is a compulsory savings scheme in Malaysia. Its primary aim is to provide a measure of security for old age retirement to its members. It also provides supplementary benefits to members to utilize part of their savings for house ownership and other withdrawal schemes.
EPF is the abbreviation for Employees Provident Fund. Employees Provident Fund is commonly known in the Malay term as KWSP or Kumpulan Wang Simpanan Pekerja.
Employees Provident Fund Act 1991 is the act governing the Employees Provident Fund in Malaysia. This Act is administered by the Employees Provident Fund, Malaysia.

8.2 Contribute Towards the Fund

All employees in Malaysia who have reached the age of 16 and employed under a contract of service whether express or implied, and whether oral or in writing must be registered as a member of the Employees Provident Fund.
An employer will contribute 12% of the employee's wages and the employee contributes 11% of the monthly wages towards the employee's account.
Prior to 1st August 1998, expatriates and foreign workers were not required to contribute to the EPF although they may elect to do so.
However, with effect from 1st August 1998, all foreign workers and expatriates earning less than RM2,500 per month are also required to contribute to EPF with the exception of certain categories.
Those who are exempted from making the compulsory contribution are :
- employees or workers holding Employment Pass or expatriates holding Visit Pass (Temporary Employment) whose monthly wages is not less than RM2,500
- Thai workers who enter Malaysia with a Territorial Pass
- Seamen
- Foreign domestic maids
- Self-employed persons
- Out-workers who do cleaning and alteration repair works
- Persons detained in custody, in prison, Henry Gurney School and mental hospital
- Pensioners
Nevertheless, the above can choose to contribute to the fund.
Where a member continues employment after withdrawing the contributions upon retirement, such member may opt to continue contributing to the EPF by submitting the KWSP 20/20A Form.

The statutory rates of contributions are as follows :

	% of contributions of employees' wages
	Employer	Employee
All except expatriates and foreign workers	12%	11%
Expatriates and foreign workers (except those excluded)	RM5 per person	11%

Employers and employees are, however, allowed to elect to contribute at higher rates.

8.3 The Procedure to Register An Employee With The EPF

Employers must register their employees with the EPF within 7 days of employment under law.
Under section 41(2) of the EPF Act 1991, an employer who contravenes the above shall be found guilty of an offence and shall be liable, on conviction to imprisonment for a term not exceeding 3 years or fine not exceeding RM10,000 or to both.
An employer shall register the company or firm with the EPF by submitting the KWSP 1 Form. This can be obtained from the nearest EPF branch office.
Thereafter, for each employee, the employee and the employer is required to complete the KWSP 3 (AHL) Form. Generally, an employee will also be required to submit the Nomination Form KWSP 4 (AHL) which is attached together with the KWSP 3 (AHL) Form.
Once the application is approved, the employee will be sent a Membership Card.
The EPF contribution by employer and employee shall commence on the first month of salary payment pursuant to section 45(2) of the EPF Act 1991.

8.4 When Should Employer Pay Contribution to EPF

An employer shall before the end of the first week in the first month in which he is paying required paying contribution to the Employees Provident Fund.
An employer shall prepare and furnish a statement of wages to each employee.
An employer who fails to make contributions to EPF shall be guilty of an offense and shall be liable on conviction to imprisonment for a term not exceeding 3 years or to a fine not exceeding RM10,000 or to both.

9.1 What Is Social Security Organization (SOCSO) ?

The Social Security Organization is an organization set up to administer, enforce and implement the Employees' Social Security Act, 1969 and the Employees' Social Security (General) Regulations 1971.
The Social Security Organization provides social security protection by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees to reduce the sufferings and to provide financial guarantees and protection to the family.
SOCSO is the abbreviation for Social Security Organization. It is commonly known in the Malay term as PERKESO or Pertubuhan Keselamatan Sosial.

9.2 Compulsory Contribute To SOCSO

An employee employed under a contract of service or apprenticeship and earning a monthly wages of RM2,000 and below must compulsorily register and contribute to SOCSO regardless of the employment status whether it is permanent, temporary or casual in nature.
An employee must be registered with the SOCSO irrespective of the age.
SOCSO only covers Malaysian workers and permanent residents. As a result, foreign workers are protected under the Workmen's Compensation Act 1952.
Nevertheless, SOCSO does not cover the following categories of persons :
- Government employees.
- Domestic servants employed to work in a private dwelling house which includes a cook, gardeners, house servants, watchman, washer woman and driver.
- 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 Injuries Scheme.
- Self-employed persons.
- Foreign workers. A person whose wages exceed RM2,000 a month and has never been covered before.

9.3 Wages Mean For The Purpose Of SOCSO Contribution

For the purpose of SOCSO contribution, wages mean all remuneration payable in money to an employee. The following payments are considered as wages :
- salary
- overtime payment
- commissions and service charge
- payment for leave, sick, annual, rest day, public holidays, maternity and others
- allowances, shift, incentive, housing, food, cost of living and others.
Payments made to an employee paid at an hourly rate, daily rate, weekly rate, task or piece rate are also considered as wages.
However, the following payments are not considered as wages :
- mileage claims
- gratuity payments or payments for dismissal or retrenchment
- annual bonus. payments by an employer to any statutory fund for employees

9.4 The Coverage Provided To an Insured Person by SOCSO Under ESSA 1969

An insured person or dependants will be entitled to the following benefits :
- Periodical payments in the case of invalidity
- Periodical payments in the case of disablement suffered as a result of an employment injury
- Periodical payments to the dependants of an insured person who dies as a result of an employment injury
- Payments for funeral benefit or expense on the death of an insured person as a result of an employment injury
- Periodical payments to an insured person who is in receipt of invalidity pension or disablement benefit and is so severely incapacitated or disabled as to require the personal attendance of another person
- Medical treatments for the attendance on insured persons suffering from disablement
- Periodical payments to dependants of an insured person who dies while in receipt of invalidity pension
SOCSO provides coverage to eligible employees through 2 schemes namely
- Employment Injury Insurance Scheme
- Invalidity Pension Scheme
These schemes are classified into 2 categories :
- First Category - Employment Injury Insurance Scheme and Invalidity Pension Scheme. The contribution payment is made by both the employer and employee
- Second Category - Employment Injury Insurance Scheme Only. The contribution is paid by the employer only. An employee who is not eligible for coverage under the Invalidity Pension Scheme is protected under this category.
These schemes provide the benefits of invalidity pension, invalidity grant, survivors pension, rehabilitation, funeral benefit, constant attendance allowance and educational loan.

9.5 The Invalidity Pension Scheme Cover and The Benefits Provided

Invalidity Pension Scheme provides a 24-hours coverage to employees against invalidity and death due to any cause not connected with employment before the age of 55 years.
The benefits provided under this scheme are Invalidity Pension, Invalidity Grant, Constant Attendance Allowance, Survivors Pension, Funeral Benefit, Rehabilitation and Educational Loan.
- 9.5.1 Invalidity Pension
  - For the purpose of Invalidity Pension, invalidity means a serious disease or disablement of a permanent nature that is either incurable or not likely to be cured, as a result of which an employee is unable to earn at least 1/3 of what a normally able person could earn.
  - Heart attack, kidney failure, cancer, mental illness, chronic asthma and other similar conditions are chronic ailments or diseases that could be considered for invalidity.
  - The following conditions must be fulfilled by an employee to be eligible for Invalidity Pension :
    
    at the time the notice of invalidity is received, the employee has not completed the age of 55 years
    
    if the employee has completed the age of 55 years when the notice of invalidity is received, such employee has to provide proof that the invalidity occurred before 55 years and he had ceased employment at that time.
    
    certified as an invalid by a Medical Board or Appellate Medical Board
    
    has fulfilled the contribution qualifying conditions.
  - There are 2 contribution qualifying conditions :
    
    full qualifying condition
    
    reduced qualifying condition.
  - An employee is deemed to have fulfilled the conditions of full contribution qualification if
    
    before the month in which the notice of invalidity is received, an employee's monthly contributions within a period of 40 consecutive months must be at least 24 months.
    
    an employee has made monthly contributions for at least 2/3 of the number of full months in the period between the date of first coverage under the Invalidity Pension Scheme and the date the notice of invalidity is received by SOCSO. This is subject to the condition that the total number of monthly contributions made during the stated period, is at least 24.
- 9.5.2 Invalidity Grant
  - This is an outright payment paid to worker or employee who does not qualify for the Invalidity Pension, as he does not meet any of the contribution qualifying conditions stated, but has made at least 12 monthly contributions. The Invalidity Grant is equivalent to the total amount of contributions paid by the employee and the employer for the Invalidity Pension Scheme including the interest thereof.
  - If an employee is severely incapacitated and requires constant personal attendance, the recipient of Invalidity Pension is also entitled to Constant Attendance Allowance. The Medical Board or an Appellate Medical Board will decide on the eligibility to receive this allowance and will pay the recipient of the benefit directly. Subject to a maximum of RM500 per month, the benefit is 40% of the rate of Invalidity Pension.
- 9.5.3 Survivors Pension
  - Where an employee dies in any of the following situations, irrespective of the cause of death, the dependants will be paid Survivors Pension :
    
    while an employee is receiving invalidity pension irrespective of his age
    
    an employee who is not a recipient of the invalidity pension and has not reached the age of 55 years but met either the full contribution qualifying condition or the reduced contribution qualifying condition.
  - Where the deceased is a recipient of Invalidity Pension, the rate of the Survivors Pension is equivalent to the rate of the Invalidity Pension received by him.
  - Where the deceased is not a recipient of the Invalidity Pension and has met the full contribution qualifying conditions, the full rate of the Survivor's Pension is between 50% to 65% of the average monthly wage depending on the number of contributions made in his behalf.
  - The rate of Survivors Pension will be 50% of the average monthly wage for an employee who meets the reduced contribution qualifying condition.
  - Dependants who are entitled for the pension are the same as those under the Dependent Benefit of Employment Injury Scheme.
- 9.5.4 Funeral Benefit
  - This benefit is paid to the eligible next-of-kind if an employee dies:
    
    while receiving Invalidity Pension
    
    before reaching the age of 55 but meets the full or reduced qualifying contribution conditions.
  - The amount and the persons qualified to receive this benefit are the same as those under the Employment Injury Scheme
- 9.5.5 Rehabilitation Benefit
  - An employer who suffers invalidity is also entitled to receive Rehabilitation Benefit as provided under the Employment Insurance Injury Scheme
The total contribution for the Invalidity Pension Scheme is about 1% of the wages of an employee and is shared by the employer and the employee equally.

9.6 The Coverage of Employment Injury Insurance Scheme

The Employment Injury Scheme provides coverage for accidents that occur while :
- 9.6.1 Traveling (Commuting accident)
  - while traveling on a route between the place of residence or stay and the work place
  - while traveling between the work place and the place where the employee takes meals during any authorized recess
  - while traveling on a journey directly connected to work
  Except for accident that occurs during a stoppage or deviation done for personal reasons, all commuting accidents are considered as employment related.
- 9.6.2 Arising out of and in the course of employment
  - Accident that happens while performing official duty at the work place which arise out of the employment.
- 9.6.3 Occupational diseases
  - An employee contracting a disease to which he is exposed to various hazards by the nature of his duty.
  - The list of occupational diseases is found in the Fifth Schedule of the Employees' Social Security Act 1969.
Several benefits are provided under the Employment Injury Insurance Scheme :
- 9.6.5 Temporary Disablement Benefit
  - An employee who has been certified by a doctor to be unfit for work for not less than 4 days including the day of the accident is eligible for this benefit. This benefit will be paid for the period the employee is on medical leave.
  - The daily rate of this benefit is equivalent to 80% of the average assumed daily wage. However, the employee will be paid a minimum rate of RM10 if the daily rate is below RM10. An employee whose wage exceeds RM1,900 per month will be paid a maximum rate of RM52 per day.
- 9.6.6 Permanent Disablement Benefit
  - An employee who has been certified by a Medical Board or an Appellate Medical Board to be suffering from permanent disablement as a result of an employment injury is eligible for this benefit. Where the permanent disablement is assessed to be 100%, an employee will be paid a daily rate equivalent to 90% of the average assumed daily wage, subject to a minimum daily rate of RM10.
  - An employee can claim the benefit to be paid as a lump sum if the permanent disablement is assessed to be 20% or less.
  - However, where the assessment of the loss of earnings capacity exceeds 20%, the employee is given an option to exchange 1/5 of the daily rate of permanent disablement benefit into a lump sum payment while the balance will be paid as a monthly pension for life.
  - While receiving this benefit, an employee may continue to work.
- 9.6.7 Constant Attendance Allowance
  - This allowance is paid to an employee who is suffering from permanent total disablement or 100% loss of earnings capacity, and is so severely incapacitated that he constantly requires the personal attendance of another person. Subject to a maximum of RM500, the allowance is equivalent to 40% of the rate of permanent total disablement benefit.
  - The Medical Board or the Appellate Medical Board will determine the eligibility for this allowance and the payment will be paid directly to the recipient of the benefit.
- 9.6.8 Funeral Benefits
  - Where an employee dies as a result of an employment injury or while receiving disablement benefit, an amount of RM1,500 will be paid. Payment will be made to the eligible next-of-kin. Where there are no next-of-kin, the person who incurred the funeral expenditure will be paid the benefit. The maximum amount for the benefit is the actual amount incurred or RM1,500 whichever is lower.
- 9.6.9 Rehabilitation Benefit
  - SOCSO provides facilities for vocational and physical rehabilitation to employee who suffers from permanent disablement.
  - Physical rehabilitation includes physiotherapy, occupational therapy, reconstructive surgery, as well as the supply of artificial limps such as artificial leg, hand, eye and dentures and other prosthetic appliances such as wheelchairs, hearing aids, crutches, spectacles, calipers and orthopedics shoes, including their repair and replacement.
  - An employee who is unable to find a suitable job due to his permanent disablement, can apply to undergo vocational training in courses such as radio or television repairs, metal trade, electrical wiring, repairs of refrigerator and air-conditioner, tailoring, plumbing, typing and secretarial work.
  - SOCSO will bear all expenses incurred for the purpose of vocational and physical rehabilitation based on rates and conditions determined by SOCSO.
- 9.6.10 Dependant's Benefit
  - Where an employee dies as a result of an employment injury, the dependants are entitled to this benefit. Subject to a minimum rate of RM10 per day, the full daily rate of dependants' benefit is 90% of the average assumed daily wage.
  - Where there is no widow, widower or an eligible child, the following persons can receive the benefits if they depend wholly or partially on the employee's income at the time of his death. 9.6.4 Medical Benefit
    
    Where an employee contracts any occupational disease or meets with an accident, he is entitled to treatment at a SOCSO Panel Clinic or any government hospital or clinic.
    
    To be eligible for free treatment, a employee or his representative is required to bring along an :
    
    Accident Report (Form 21) or an Identification
    
    Letter from his employer or Report of Occupational Diseases Form 68 & Form 69 (whichever is relevant)
    
    SOCSO will settle his medical bill on behalf by paying the medical treatment provider directly.
    
    Where the employee initially receives treatment in a SOCSO Panel Clinic, treatment must be continued at the same clinic until recovery or unless he is referred to a Government Hospital.
    
    In the event of serious injury, the treatment should be at the nearest government hospital.
    
    Where an employee requires in-patient treatment, he is eligible for second class ward treatment at the hospital. Where an employee requires specialist treatment, such treatment can also be provided at a government hospital.
    
    Reimbursement for medical expenditure incurred at a non SOCSO Panel Clinic may only be submitted for consideration.

9.7 The Rate of SOCSO Contribution

The principal employer must make a monthly contribution for each eligible employee according to the rates specified under the Act.
The employer pays 1.75% for the Employment Injury Insurance Scheme and the Invalidity Pension Scheme while the employee's share of 0.5% of wages should be paid for coverage under the Invalidity Pension Scheme.
The rate of contribution is based on the monthly wage of the employee in accordance to 24 categories.

9.8 The Responsibilities of an Employer

An employer must cover their employees even if the employees have other private insurance coverage.
A company or firm with one or more employees whose individual earnings do not exceed RM1,000 a month has to register with SOCSO. The contributions for such employees are borne solely by the employer.
Where an employee reached the age of 55 and continues to be employed after that age, only the employer shall contribute to SOCSO for such employees.
Under the Employees' Social Security Act 1969, it is the duty of an employer to make contribution to the SOCSO on behalf of the employees to insure them against employment injury and the contingencies of invalidity.
It is the liability of the principal employer to ensure all employees employed by the immediate employer have been registered and their contributions have been paid.
Under the Employees' Social Security Act 1969, the principal employer will be liable, in the event the employees have not been registered and the immediate employer cannot be located.

9.9 Interest on Contributions Due and Not Paid On Time by Employer

Where an employer fails to pay contributions within the required period, such employer shall be liable to pay interest as specified under regulation 33 of the Employees Social Security (General) Regulations 1971.
Interest payable will be calculated at the rate of 6% per annum in respect of each day of default or delay beyond the end of such period, subject to a minimum payment of RM5.

9.10 What About An Employee With Monthly Wages Exceeding RM2,000 ?

Where an employee's monthly wages exceed RM2,000, such employee will falls into either of the situation :
Where an employee has been registered previously and contributed to SOCSO, such employee must compulsorily continue to contribute even though the present wage exceeds RM2,000 per month. This will be in line with the principle of "once covered always covered" to preserve the employee's rights accumulated under the Invalidity Pension Scheme.
Where an employee has not been registered previously and has been receiving a monthly wage exceeding RM2,000, such employee may opt to be covered under the Act. If an employee opts to be covered, both the employer and employee have to consent to the coverage by filling the necessary form.

9.11 Report an Accident and Make My Claim

9.11.1 Under the Employment Injury Insurance Scheme :
- All commuting and work related accidents have to be reported by completing and submitting the Accident Report Form 21. The information regarding the accidents and injuries has to be written clearly with full details.
- An employer's statement, Claim Form 10 and sick leave certificates should be attached to the completed Form 21. A police report, attendance records and a sketch map of the route indicating the place of the accident are additional requirements to report commuting accidents.
- Where an employee is still in employment and contracted with Occupational diseases, report can be made using Form 68. However, Form 69 should be used instead, if the employee has ceased employment.
- To claim for Temporary Disablement Benefit, the victim or the representative has to submit the following documents :
  - Claim Form 10
  - Doctor's Certificate (Form 13) or the original copy of a Medical Certificate
  - In the event of commuting accident, which involves the payment of Temporary Disablement Benefit or Permanent Disablement Benefit, the following action should be taken :
    
    The employer of the insured person must be notified verbally or in writing about the accident as soon as possible either by the insured or another person acting on his behalf.
    
    A police report of the accident must be made either by the insured or anyone on his behalf.
    
    A copy of the police report must then be obtained and submitted to the employer either by the insured or any other person.
    
    The employer of the insured person should submit the police report, sketch map of place of accident, attendance record and other documents together with the Accident Report in form 21 to SOCSO local office.
- To claim for Permanent Disablement Benefit, the employee or worker must submit Claim Form 10 and a written application to the SOCSO local office for reference to the Medical Board. A Medical Report from the hospital or clinic which the employee is treated must also be submitted.
- To claim for Dependants Benefit, the claimant should submit Claim Form 24 and certified copies of the following documents
  - death certificate
  - post-mortem report (if any)
  - birth certificate of all the children
  - marriage certificate
  - widow's identity card (if relevant)
- If there is no widow, widower or an eligible child, the claimant should submit Claim Form 24 and certified copies of the following documents :
  - birth certificate of the deceased
  - birth certificate of all the younger brothers and sisters where applicable
  - identity card of parents or guardian or grandparents (if relevant)
  - death certificate
  - statement of dependency
- To claim for Funeral Benefit, the claimant should submit Claim Form 26 and return it to the SOCSO local office together with a certified copy of the death certificate.
9.11.2 Under the Invalidity Pension Scheme :
- To claim for Survivor Pension of the Invalidity Pension Scheme, the claimant should submit the Claim Form 24 and certified copies of the death certificate, birth certificate of all children, marriage certificate and the widow or widower identity card where applicable.
- Where there is no eligible widow, widower or children, the claimant must submit Claim Form 24 and certified copies of death and birth certificate of the deceased employee, birth certificate of younger brothers and sisters, if relevant, identity card of parents or guardian or grandparents, if relevant. The completed application should be sent to the nearest SOCSO local office for processing. To claim for Invalidity Grant, the claimant should submit the PKS. (F)41 (Notice of Invalidity) Form and medical report together with a certified copy of identity card or birth certificate.

9.12 Processing a Claim

Incomplete application form results in late withdrawals payment.
If you fulfill the necessary requirements and the application forms and supporting documents are complete, SOCSO will undertake to :
- pay temporary disablement benefit (first payment) to injured employees within a month.
- pay permanent disablement benefit (first payment) and constant attendance allowance to all injured employees within 3 months.
- pay dependant's benefit (first payment) to dependants within 3 months.
- pay invalidity pension (first payment) or invalidity grant or constant attendance allowance to employees who qualify within a period of 3 months.
- pay survivor's pension (first payment) to dependants within a period of 3 months.
- pay funeral benefits to eligible dependants of deceased persons within 15 days.
State offices of the SOCSO are now empowered to process and settle compensation claims of less than RM20,000.
General compensation claims can be settled within 3 days, except for the specific ones which requires longer time to be finalized.

9.13 Appeal

Two types of appeal boards, namely Appellate Medical Board and Social Security Appellate Board, have been set up to review cases or decide on appeals relating to approvals and claims for benefits.
- Appellate Medical Board
  - The Appellate Medical Board reviews the decision of the Medical Board. Employees who are not satisfied with a decision of a Medical Board regarding assessment of permanent loss of earnings capacity or the determination of invalidity can appeal to this board. The decision made by this board is final.
  - You can appeal by filling the PKS(P) 12 Form and returning to the SOCSO local office, within 90 days of the date on the letter informing the decision of the Medical Board.
Social Security Appellate Board
- An appellant can be represented by a lawyer, a trade union representative or any person authorized by the Board. An appeal can be made by completing Form A and sending it to the relevant board at any of the Social Security Appellate Board. The Social Security Appellate Board reviews the decision of the SOCSO. Employees or dependants who are not satisfied with a decision made by SOCSO can appeal to this board.

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