Malaysia Employment Law Guide

Malaysia Employment Law Guide: Employee Rights & Workplace Rules

Employment law in Malaysia sets the legal foundation for how employees and employers must treat each other at work. Whether you are a fresh graduate starting your first job, a working professional planning to resign, or an employer managing staff, understanding Malaysia employment law helps you avoid disputes, protect your rights, and make better workplace decisions.

This page is your central employment law hub. It explains the core rules under Malaysian labour laws—such as wages, working hours, leave, notice period, and termination—and links to in-depth guides that cover each topic in detail.

What Is Employment Law in Malaysia?

Knowing your legal rights is part of building a safe and sustainable career guide in Malaysia.

Employment law in Malaysia refers to the set of laws and regulations that govern the relationship between employers and employees. These laws define minimum standards for pay, working hours, leave entitlements, termination procedures, and workplace safety.

The purpose of Malaysian employment law is to:

• Protect employees from unfair treatment

• Set clear obligations for employers

• Provide a framework to resolve workplace disputes

Key Employment Laws in Malaysia

Several laws form the backbone of employment law in Malaysia:

Employment Act 1955

The main law covering wages, working hours, rest days, overtime, leave, notice period, and termination.

Industrial Relations Act

Governs dispute resolution, unfair dismissal claims, and industrial harmony.

Minimum Wages Order

Sets the legal minimum wage employers must pay.

Employees’ Social Security Act (SOCSO)

Provides protection for work-related injuries, disabilities, and certain illnesses.

Occupational Safety and Health Laws

Require employers to provide a safe and healthy workplace.

Together, these laws protect employee rights in Malaysia and provide employers with clear compliance standards.

Who Is Covered Under Malaysian Employment Law?

Employees who build strong workplace skills in Malaysia are better positioned to protect their rights and career progress.

The Employment Act 1955 applies to all employees, but certain benefits and protections mainly apply to:

• Employees earning RM4,000 and below

• Manual labourers (regardless of salary)

• Domestic workers and certain other specified categories

Employees earning above RM4,000 are still protected under Malaysian labour law, but some statutory benefits (like overtime or specific leave entitlements) may not apply unless stated in their employment contract.

Employment Law in Sabah & Sarawak

Laws and hiring practices are shaped by the wider employment market in Malaysia.

In Sabah and Sarawak, employment matters are governed by separate Labour Ordinances rather than the Employment Act 1955. While the principles are similar, certain rules and procedures differ. Employees working in East Malaysia should refer to the relevant Labour Ordinance applicable to their state.

Core Employee Rights Under Malaysia Employment Law

One of the most important employee protections involves salary rules in Malaysia, which ensure fair and timely payment.

Under Malaysian employment law, employees are entitled to fundamental protections, including:

• Fair and timely salary payment

• Regulated working hours and weekly rest days

• Overtime pay (when applicable)

• Statutory leave (annual, sick, maternity, public holidays)

• Proper notice before termination

For a full breakdown, see our detailed guide on Employee Rights in Malaysia.

Working Hours, Overtime & Rest Days

Employment law in Malaysia regulates:

• Maximum working hours per week

• When overtime applies

• Rest day and public holiday entitlements

These rules prevent excessive working hours and ensure fair compensation for extra work.

Read more in our Overtime Rules in Malaysia guide.

Leave Entitlements Under Malaysian Law

Employees in Malaysia are entitled to statutory leave, including:

• Annual leave (based on years of service)

• Sick leave and hospitalisation leave

• Maternity leave and paternity leave

• Public holidays

Understanding your leave rights helps you avoid being denied time off you are legally entitled to.

Notice Period, Probation & Termination

Employment law clearly regulates how an employment relationship can begin and end.

• Notice Period Rules – Both employer and employee must give notice before ending employment.

• Probation Rights – Probationary employees still have legal protections.

• Termination Without Notice – Only allowed in limited, lawful situations.

Explore these topics in detail:

• Notice Period Rules in Malaysia

• Probation Period Rules in Malaysia

• Fired Without Notice in Malaysia

Salary Deductions & Employer Misconduct

Employers in Malaysia are not allowed to deduct salary freely. Deductions are only legal in specific situations, such as statutory contributions or agreed penalties. Late payment of salary, illegal deductions, and forced resignations are common employment law violations.

If you face these issues, knowing the law helps you take the right action.

What To Do If Your Rights Are Violated

If you believe your employment rights have been breached:

1. Check your employment contract

2. Keep evidence (payslips, emails, messages)

3. Raise the issue with HR or management

4. File a complaint with the Labour Department if needed

Early action can prevent bigger problems later.

Quick Reference – Statutory Minimums

(Exact entitlements depend on contract and eligibility under the law.)

Employment Law Articles & Guides

Explore our in-depth guides for specific topics:

• Employee Rights in Malaysia – Full breakdown of worker protections

• Notice Period Rules in Malaysia – How resignation and termination notice works

• Probation Period Rules in Malaysia – What probation really means legally

• Overtime Rules in Malaysia – How overtime is calculated

• Fired Without Notice in Malaysia – When termination is lawful

• Annual Leave Entitlement in Malaysia – How much leave you are entitled to

Each article provides practical examples and step-by-step explanations.

Final Thoughts on Malaysia Employment Law

Understanding employment law in Malaysia helps you protect your career, avoid unnecessary disputes, and make confident workplace decisions. This page will continue to grow as we add more guides, making it your go-to reference for everything related to Malaysian employment law.

Bookmark this page and explore the linked articles whenever you need clarity on your workplace rights.

Employment Law in Malaysia – Frequently Asked Questions

What is employment law in Malaysia?

Employment law in Malaysia refers to the legal rules that govern the relationship between employers and employees, including wages, working hours, leave, termination, and workplace safety.

Does the Employment Act 1955 apply to all employees?

The Employment Act applies to all employees, but certain protections mainly apply to those earning RM4,000 and below and to manual workers. Employees earning above this may still be protected by other labour laws and their employment contracts.

What are the basic employee rights in Malaysia?

Employees in Malaysia have the right to fair wages, regulated working hours, overtime pay when applicable, leave entitlements, and proper notice before termination.

What is the minimum notice period in Malaysia?

If an employment contract does not specify a notice period, the legal minimum is 4 to 8 weeks depending on how long the employee has worked for the company.

Can an employer terminate an employee without notice?

An employer may only terminate without notice in cases of serious misconduct. Otherwise, proper notice or payment in lieu of notice is required under Malaysian employment law.

Are probationary employees protected under Malaysian law?

Yes. Employees on probation are still protected under Malaysian employment law and cannot be terminated unfairly.

Is overtime compulsory in Malaysia?

Overtime is not compulsory unless stated in the employment contract, but when employees work beyond normal hours, they are entitled to overtime pay under the law if eligible.

Where can employees file a complaint against their employer?

Employees can file complaints with the Malaysian Labour Department or Industrial Relations Department if their rights have been violated.