Employment Act 1955

Employment Act 1955 · Act 265
Akta Kerja 1955
Applies to: Peninsular Malaysia and the Federal Territory of Labuan (Sabah and Sarawak have their own Labour Ordinances) · Official text ↗

Key points

Since 1 January 2023 the Act covers every employee with a contract of service, whatever the salary; overtime, rest-day and holiday pay, shift allowances and termination benefits are still limited to those earning RM4,000 a month or less and certain listed workers (such as manual workers).
Normal hours are capped at 45 a week (s 60A). Overtime is paid at no less than 1.5 times the hourly rate, and more on rest days and public holidays.
Maternity leave is 98 consecutive days (s 37). Married male employees get 7 consecutive days of paid paternity leave (s 60FA).
You can apply in writing for flexible working; the employer must reply in writing within 60 days and give reasons for a refusal (ss 60P–60Q).
Forced labour is an offence (s 90B), and the Director General of Labour can decide workplace discrimination disputes (s 69F).
Employers must inquire into sexual harassment complaints (s 81B) and display a sexual harassment awareness notice (s 81H).

What this law covers

The Employment Act 1955 (Akta Kerja 1955) sets the minimum terms that an employer must give an employee: how wages are paid, working hours, rest days, holidays, leave, maternity protection and the rules for ending employment. A contract can give you better terms, but any term that gives you less than the Act is void and the Act's minimum applies instead.

The Act applies in Peninsular Malaysia and Labuan. Sabah and Sarawak have their own Labour Ordinances. Unfair dismissal is not dealt with by this Act but by the Industrial Relations Act 1967. For a plain-language overview of your rights at work, see Employment law: your rights at work.

Who it applies to: the First Schedule after 2022

The Employment (Amendment) Act 2022 and an order amending the First Schedule (Jadual Pertama) came into force on 1 January 2023 (the first announced date of 1 September 2022 was postponed). Since then:

the Act applies to anyone employed under a contract of service (kontrak perkhidmatan), whatever their wages;
but the provisions on overtime pay, pay for work on rest days and public holidays, shift allowances, and termination, lay-off and retirement benefits apply only to employees earning RM4,000 a month or less, and to certain categories listed in the First Schedule (for example manual workers) whatever their pay.

If you earn more than RM4,000 and are not in a listed category, those particular benefits depend on your contract. Everything else in the Act, such as leave, maternity rights, notice and the sexual harassment rules, still applies to you.

Where there is no written contract, the 2022 amendments also allow a person to be presumed to be an employee if signs of employment are present, for example the other party controls the hours or manner of work, provides the tools, or pays regular wages that make up most of the person's income. The employer can try to prove otherwise.

Hours, overtime, rest days and holidays

Normal hours (s 60A): no more than 8 hours a day and, since 2023, 45 hours a week (reduced from 48). You must get a break of at least 30 minutes after 5 consecutive hours, and the working day may not spread over more than 10 hours.
Overtime (lebih masa) (s 60A(3)): work beyond normal hours must be paid at at least 1.5 times the hourly rate.
Rest day (hari rehat) (s 60): one rest day a week. A monthly-rated employee who works on a rest day gets half a day's wages for up to half the normal hours and a full day's wages for more than half; work beyond normal hours on a rest day is paid at at least 2 times the hourly rate.
Public holidays (s 60D): 11 paid gazetted public holidays a year, including National Day, the Agong's Birthday, the Ruler's Birthday (or Federal Territory Day), Workers' Day and Malaysia Day. If you are asked to work on one, you get 2 days' wages on top of holiday pay, and overtime that day is at at least 3 times the hourly rate.

Remember that the overtime, rest-day and holiday pay rules apply only to employees covered by the RM4,000 threshold or a listed category.

Leave: annual, sick, maternity and paternity

Leave	Under 2 years' service	2 to under 5 years	5 years or more
Paid annual leave (s 60E)	8 days	12 days	16 days
Paid sick leave, no hospitalisation (s 60F)	14 days	18 days	22 days

Hospitalisation leave (cuti hospital): up to 60 days a year where hospitalisation is certified. Since 2023 this is in addition to ordinary sick leave, not part of it.
Maternity leave (cuti bersalin) (s 37): 98 consecutive days per confinement (up from 60). Whether the leave is paid (maternity allowance) depends on the eligibility conditions in the Act.
Protection for pregnant employees: an employer may not end the employment of a pregnant employee, or one ill because of the pregnancy, except for wilful breach of contract, misconduct or closure of the business. The employer must prove the dismissal was not because of the pregnancy.
Paternity leave (cuti paterniti) (s 60FA): 7 consecutive days on full pay per birth, up to five births, for a married male employee who has worked for the same employer for at least 12 months and who notified the employer of the pregnancy at least 30 days before the expected birth (or as early as possible after it).

Flexible working, forced labour and discrimination

Flexible working arrangements (aturan kerja fleksibel) (ss 60P–60Q): you may apply in writing to change your hours, days or place of work. The employer must approve or refuse in writing within 60 days and, if it refuses, must give the grounds. The law gives you a right to ask, not a right to be granted the change.
Forced labour (buruh paksa) (s 90B): an employer who threatens, deceives or forces an employee to do work, and prevents the employee from leaving, commits an offence. The penalty is a fine of up to RM100,000, imprisonment of up to 2 years, or both.
Discrimination (diskriminasi) (s 69F): the Director General of Labour can inquire into and decide a dispute between an employee and employer about discrimination in employment, and make an order. Failing to obey the order is an offence (fine up to RM50,000, plus up to RM1,000 a day if it continues). The Act does not define "discrimination", so each case turns on its facts.
Foreign workers: since 2023, employers need the Director General's prior approval to employ a foreign employee.

Sexual harassment at work (Part XVA)

When an employer receives a complaint of sexual harassment (gangguan seksual) it must inquire into it (s 81B). It may refuse only if the complaint was already inquired into with no harassment proven, or if it is frivolous, vexatious or not made in good faith, and it must tell the complainant of the refusal and the reasons in writing within 30 days. A complainant unhappy with a refusal can go to the Director General of Labour, who may direct the employer to inquire (and report back within 30 days) or, where the complaint is against a sole proprietor, inquire himself (s 81D). If harassment is proven against an employee, the employer must take disciplinary action, which can include dismissal without notice (s 81C). Failing to carry out these duties is an offence, with the fine raised to up to RM50,000 by the 2022 amendments (s 81F). Employers must also display a notice about sexual harassment at the workplace (s 81H).

Victims can also go to the Tribunal for Anti-Sexual Harassment for compensation.

Termination, notice and how to enforce your rights

Notice (notis) (s 12): if the written contract says nothing, the minimum notice is 4 weeks (under 2 years' service), 6 weeks (2 to under 5 years) or 8 weeks (5 years or more). Either side may instead pay wages in lieu of notice (s 13).
Misconduct (salah laku) (s 14): an employer may dismiss, downgrade or impose a lesser punishment for misconduct only after due inquiry. During the inquiry you may be suspended for up to 2 weeks on at least half pay, refunded if no misconduct is found.
Labour Department claims (s 69): for unpaid wages, overtime, leave pay, notice pay and other money due, you can complain to the Labour Department (Jabatan Tenaga Kerja, JTK). The Director General can hold an inquiry and make an order, often called a "Labour Court" claim.
Unfair dismissal: if you think you were dismissed without just cause, make a representation under section 20 of the Industrial Relations Act 1967 within 60 days.
Penalties: the general fine for offences without a specific penalty was raised from RM10,000 to RM50,000 in 2022.

Laws cited on this page

Act 177	Industrial Relations Act 1967 · Akta Perhubungan Perusahaan 1967 (Terjemahan 1976)	Official text
Act 265	Employment Act 1955 · Akta Kerja 1955	Official text

Listed automatically from the federal Acts named on this page. All laws of Malaysia →

Key sections

Provision	What it says, in plain words
First Schedule	Who the Act covers: everyone on a contract of service since 2023, with some benefits limited to those earning RM4,000 or less and listed categories of worker.
s 12	Minimum notice to end a contract when the contract is silent: 4, 6 or 8 weeks depending on length of service.
s 13	Either party may end the contract by paying wages in lieu of notice; either may end it without notice for wilful breach by the other.
s 14	Dismissal or other punishment for misconduct only after due inquiry; suspension up to 2 weeks on at least half pay.
s 37	98 consecutive days of maternity leave per confinement; rules on maternity allowance.
s 60	Weekly rest day and pay for work on a rest day.
s 60A	Maximum hours (8 a day, 45 a week), breaks and overtime at no less than 1.5 times the hourly rate.
s 60D	11 paid public holidays; double pay plus holiday pay for working on one; triple rate for overtime that day.
s 60E	Paid annual leave of 8, 12 or 16 days depending on service.
s 60F	Paid sick leave of 14, 18 or 22 days, plus up to 60 days' hospitalisation leave.
s 60FA	7 consecutive days' paid paternity leave per birth, up to five births, for married male employees with 12 months' service.
ss 60P–60Q	Written application for flexible working; employer's written reply within 60 days with reasons for refusal.
s 69	Director General of Labour can inquire into and decide claims for wages and other payments.
s 69F	Director General can inquire into and decide workplace discrimination disputes and make orders.
ss 81A–81H	Employer's duty to inquire into sexual harassment complaints, role of the Director General, offence for failing to act, and duty to display a notice.
s 90B	Forced labour offence: fine up to RM100,000, jail up to 2 years, or both.

Worked examples

Example 1: Overtime for a factory supervisor

Facts. Ravi is a production supervisor in a Shah Alam factory earning RM3,600 a month. He regularly works 50 hours a week but is never paid overtime because his contract says his salary is "all-inclusive".

The law. Ravi earns under RM4,000, so the overtime rules apply to him. Normal hours are capped at 45 a week (s 60A), and hours beyond his normal daily hours must be paid at no less than 1.5 times his hourly rate (s 60A(3)). A contract term giving less than the Act is void.

Outcome. Ravi can claim unpaid overtime by lodging a complaint with the Labour Department under s 69. He should keep his own record of hours (clock-in data, messages, rosters).

Example 2: Paternity leave refused

Facts. Hafiz has worked for a logistics company in Johor Bahru for two years. His wife is due in March. He told HR in January, but his manager says paternity leave is "only for senior staff".

The law. Under s 60FA a married male employee with at least 12 months' service who gives notice at least 30 days before the expected birth is entitled to 7 consecutive days' paid paternity leave, for up to five births. It does not depend on seniority or salary.

Outcome. Hafiz is entitled to the leave. If refused, he can complain to the Labour Department. He should keep a copy of his written notice.

Example 3: Asking to work from home

Facts. Mei Ling, an accounts executive in Petaling Jaya, asks by email to work from home two days a week to care for her elderly father. Three months pass with no answer.

The law. Sections 60P–60Q let an employee apply in writing to vary hours, days or place of work. The employer must approve or refuse in writing within 60 days and give reasons for a refusal.

Outcome. The employer has missed the 60-day deadline. Mei Ling can raise it with HR in writing and, if needed, the Labour Department. The law does not force the employer to say yes, but it must reply and give reasons.

Example 4: Dismissed while pregnant

Facts. Aminah, five months pregnant, is told her job at a retail chain in Ipoh is ending because of "restructuring", though no one else is let go and the shop remains open.

The law. An employer may not end the employment of a pregnant employee except for wilful breach of contract, misconduct or closure of business, and must prove the termination was not because of the pregnancy.

Outcome. Aminah can complain to the Labour Department and should also file an unfair dismissal representation under s 20 of the Industrial Relations Act 1967 within 60 days of dismissal.

Examples are simplified illustrations with invented names; real cases turn on their own facts.

Questions & answers

I earn RM6,000 a month. Does the Employment Act still protect me?

Yes. Since 1 January 2023 the Act covers every employee on a contract of service. But overtime, rest-day and public holiday pay, shift allowances and statutory termination benefits apply only if you earn RM4,000 or less or fall in a listed category such as manual work. Leave, maternity and paternity rights, notice and the sexual harassment rules apply to you regardless of salary.

How many hours can my employer make me work?

Normal hours may not exceed 8 a day or 45 a week, with a break of at least 30 minutes after 5 hours (s 60A). Extra hours count as overtime, which covered employees must be paid at no less than 1.5 times the hourly rate.

Does my employer have to agree to my flexible working request?

No, but it must respond. Under ss 60P–60Q you apply in writing, and the employer must approve or refuse in writing within 60 days and explain any refusal.

Is hospitalisation leave part of my 14 days' sick leave?

No. Since 2023 hospitalisation leave of up to 60 days a year is separate from ordinary sick leave of 14, 18 or 22 days (s 60F), so the two are counted separately.

My manager harassed me and HR ignored my complaint. What can I do?

Your employer must inquire into the complaint, or tell you in writing within 30 days why it will not (s 81B). You can take the matter to the Director General of Labour, who can direct an inquiry. You can also file a claim with the Tribunal for Anti-Sexual Harassment, and report any crime to the police.

Can I be sacked without notice?

Only in limited cases: for misconduct after a due inquiry (s 14), for wilful breach of contract (s 13(2)), or if the employer pays wages in lieu of notice (s 13(1)). If you believe the dismissal was without just cause, you have 60 days to file a representation under the Industrial Relations Act 1967.

Where do I complain about unpaid salary?

Lodge a complaint at the nearest Labour Department (JTK) office. The Director General can inquire and order payment under s 69. It is cheaper and faster than a civil suit.

All questions & answers → · Ask your own →

This page explains the general position in Malaysia (last reviewed October 2026). It is not legal advice — check the current law and get advice on your own facts.

Sources

Employment law: your rights at work Industrial Relations Act 1967 Anti-Sexual Harassment Act 2022 Tribunals and alternatives to court Getting legal help