Employment law: your rights at work

Key points

Since 1 January 2023 the Employment Act covers all employees. Overtime and termination-benefit rules apply only up to RM4,000 a month (plus specified categories).
The working week is capped at 45 hours. Maternity leave is 98 days and paternity leave 7 days.
An unfair dismissal claim must be filed with the Industrial Relations Department within 60 days.
The minimum wage is RM1,700 a month. A rise to RM2,000 from June 2027 has been announced but is not yet law.
Unpaid wages can be claimed at the Labour Department.
Sabah and Sarawak have their own Labour Ordinances, brought into line with the Employment Act from 1 May 2025.

Which law applies

Peninsular Malaysia and Labuan: the Employment Act 1955 (Akta Kerja 1955).
Sabah: the Sabah Labour Ordinance. Sarawak: the Sarawak Labour Ordinance. Both were amended with effect from 1 May 2025 to bring them broadly into line with the Employment Act. For example, they now cover all employees regardless of wage, set a 45-hour week, give 98 days' maternity leave and 7 days' paternity leave, and add flexible working, anti-discrimination and sexual-harassment provisions.
Dismissal disputes everywhere: the Industrial Relations Act 1967.

Who is covered (after the 2022 amendment)

Since 1 January 2023, the Employment Act applies to all employees with a contract of service, whatever their wages. Some protections, however, apply only to employees earning RM4,000 a month or less (and to certain specified categories, such as manual workers, whatever their pay). These are:

overtime pay;
extra pay for work on rest days and public holidays;
shift allowances;
statutory termination, lay-off and retirement benefits.

If you earn more than RM4,000, your contract sets these terms instead.

Working hours

Normal working hours are capped at 45 hours a week (reduced from 48 in 2023). Work beyond normal hours is overtime and must be paid at a higher rate for covered employees. Employees can also apply in writing for flexible working arrangements (changes to hours, days or place of work). The employer must reply in writing within 60 days and give reasons if it refuses.

Leave entitlements (minimums)

Type	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: up to 60 days a year, which has been separate from ordinary sick leave since 2023.

Public holidays: covered employees are entitled to paid public holidays as set by law and gazetted for their state. Your contract can give more than these minimums, but not less.

Maternity and paternity leave

Maternity leave: 98 consecutive days (up from 60). Paid maternity allowance depends on meeting the Act's service conditions. An employer may not terminate a pregnant employee, or one with a pregnancy-related illness, except for wilful breach of contract, misconduct or closure of the business. The employer must prove the termination was not because of the pregnancy.
Paternity leave: 7 consecutive days on full pay per birth, for up to five births, for a married male employee who has worked for the same employer for at least 12 months and has given the required notice.

Termination and notice

Either side may end a contract by giving notice. If the written contract is silent, the Employment Act sets minimum notice of:

4 weeks if employed less than two years;
6 weeks for two to under five years;
8 weeks for five years or more.

Pay in lieu of notice is allowed. Covered employees who are dismissed (other than for misconduct) or retrenched may also be entitled to statutory termination benefits under the Employment (Termination and Lay-Off Benefits) Regulations 1980. Dismissal for misconduct requires a due inquiry first.

Unfair dismissal: Industrial Relations Act 1967, s 20

If you believe you were dismissed without just cause or excuse, including "forced resignation" (constructive dismissal), you can make a representation to the Director General of Industrial Relations (Jabatan Perhubungan Perusahaan).

Deadline: within 60 days of the dismissal. Do not miss it.
The department first tries conciliation. Since the 2020 amendment, if the case cannot be settled, the Director General refers it directly to the Industrial Court (Mahkamah Perusahaan). Previously the Minister decided whether to refer.
The Industrial Court can order reinstatement or compensation (back wages and compensation in lieu of reinstatement). Its awards can be appealed to the High Court within 14 days of receiving the award.

Unpaid wages and other claims: the Labour Department

For unpaid wages, overtime, leave pay, notice pay and other money due under the Employment Act, you can lodge a complaint with the Labour Department (Jabatan Tenaga Kerja, JTK). After 2023, the old salary cap on who can complain was removed. The Director General can hold an inquiry and make an order, often called a "Labour Court" claim. It is cheaper and quicker than a civil suit.

Minimum wage

Under the Minimum Wages Order 2024, the national minimum wage is RM1,700 a month. It applied from 1 February 2025 to employers with five or more workers and to all employers from 1 August 2025. Domestic workers are excluded.

In Budget 2027 (tabled 9 October 2026), the government announced a rise to RM2,000 from June 2027, with micro, small and medium enterprises reported to be exempt at first. This is not yet law: it takes effect only once a new order is gazetted, so check the latest position.

EPF and SOCSO basics

EPF (KWSP): retirement savings. For Malaysian employees under 60, the employee generally contributes 11% of wages. The employer contributes 13% if wages are RM5,000 or less, or 12% above that. Rates differ for older workers and non-citizens. Check your payslip and your EPF statement.
SOCSO (PERKESO): social security for workplace injury, occupational disease and invalidity, plus the Employment Insurance System (EIS) for people who lose their jobs. Employers must register employees and pay contributions. Report workplace accidents promptly.

Other protections

Since 2023, the Act also covers forced labour (an offence), discrimination disputes (the Director General can inquire and make orders), and a duty on employers to handle sexual harassment complaints and display a notice about sexual harassment at the workplace. Where there is no written contract, a person may be presumed to be an employee if certain signs of employment are present.

When to see a lawyer

For dismissal, retrenchment or large claims, get advice early. The 60-day limit for unfair dismissal is strict. Unions, the Legal Aid Department and Bar legal aid centres can help: see Getting legal help.

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 →

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

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