Work problems: Labour Court claims, unfair dismissal and gig workers

Unpaid wages: the Labour Department (“Labour Court”)

• The Director General of Labour may inquire into and decide any dispute between an employee and employer about wages or other cash payments due under the contract of service, the Employment Act 1955 or its subsidiary legislation, and order the employer to pay what he deems just, without limit on the amount (s 69(1)).
• He may also hear claims against a principal or contractor liable under s 33, claims by a labour contractor, and an employer’s claim for indemnity in lieu of notice (s 69(2)).
• If you were punished for misconduct (dismissal, downgrading or suspension under s 14(1)), you can ask the Director General to confirm or set aside the decision — but only by complaining within 60 days of being told of it (s 69(3)).
• The claim is started by giving the Director General a written statement of the complaint and the remedy sought, or making that statement in person (s 70(a)).
• An order to pay carries interest of up to 8% a year from the 31st day after the order (s 69(3A)). Failing to comply is an offence: fine up to RM50,000, plus up to RM1,000 a day for a continuing offence (s 69(4)). The order can be registered and enforced as a Sessions Court or First Class Magistrate’s Court judgment (s 75).
• Anyone whose financial interests are affected may appeal the order to the High Court (s 77).
• The Director General will not hear a claim that is pending under the Industrial Relations Act 1967, has been decided by the Minister under s 20(3) of that Act, or is before the Industrial Court (s 69A).

Notice and termination rules

• Either party may give notice to end the contract at any time (s 12(1)). The notice is the same for both sides; if the contract does not set it in writing it must be at least 4 weeks (less than 2 years’ service), 6 weeks (2 to 5 years) or 8 weeks (5 years or more) (s 12(2)). Notice must be in writing (s 12(4)).
• In redundancy-type situations — the business closing or moving, work diminishing, a change of ownership — the employee is entitled to at least that statutory notice whatever the contract says (s 12(3)).
• Either party may end the contract without notice by paying an indemnity equal to the wages for the notice period (s 13(1)), or without notice or indemnity if the other wilfully breaches a condition of the contract (s 13(2)).

Unfair dismissal: asking to be reinstated

1. File within 60 days. A workman — union member or not — who considers he was dismissed without just cause or excuse may make written representations to the Director General of Industrial Relations to be reinstated, at the office nearest his workplace (Industrial Relations Act 1967 s 20(1)). They must be filed within 60 days of the dismissal; if dismissed with notice, during the notice or within 60 days after it expires (s 20(1A)).
2. Conciliation. The Director General takes steps to reach a quick settlement (s 20(2)). At this stage either side may act personally or through a union or registered organisation official, or another authorised person — but not an advocate and solicitor (s 20(6)).
3. Reference to the Industrial Court. If settlement is unlikely, the Director General refers the representations to the Industrial Court for an award (s 20(3)). An award bars a claim for damages for wrongful dismissal in any other court (s 20(4)).
4. The award. The Court acts according to equity, good conscience and the substantial merits of the case, without regard to technicalities, and should make its award where practicable within 30 days of the reference (s 30).
5. Appeal. A party dissatisfied with the award may appeal to the High Court within 14 days of receiving it (s 33C(1)).

Gig workers: who is covered

• The Gig Workers Act 2025 comes into operation on dates appointed by the Minister by notification in the Gazette, possibly different dates for different provisions (s 1(2)). Check whether the provision you rely on is in force.
• A gig worker is a Malaysian citizen or permanent resident who enters into a service agreement to perform a service for a platform provider, or a service listed in the Schedule for another contracting entity, and receives earnings for it (s 2).
• A service agreement may be oral or written, express or implied, but does not include an employee’s contract of service under the Employment Act or Sabah and Sarawak Labour Ordinances (s 2). A platform provider is a digital intermediary connecting the gig worker to service users (s 2).

Gig workers: rights and pay

• A gig worker must be told the terms, the service, the rate and details of earnings (before agreeing to the job) and the payment method; must be paid within the agreed period; consulted on changes; not terminated without just cause or excuse; and given a dispute mechanism (s 8(1)).
• Platform workers must also be told about automated monitoring and decision-making systems and given a non-automated way to have them reviewed (s 8(2)).
• Terms that contract out of or waive these rights are void (s 8(3)).
• If the agreement sets no payment terms, earnings must be paid within seven days of completing the service; failing to do so is an offence (s 11).

Gig workers: deactivation and disputes

• A platform may deactivate a worker only under the service agreement’s terms or for misconduct in performing the service (s 14(1)). It may suspend access for up to 14 days to hold an inquiry, with written notice (s 14(3)–(4)).
• If no ground is found it must reactivate access and pay half the average daily earnings for the suspension (based on actual service days in the 30 days before) (s 14(5)). If a ground is found it may terminate, or extend the suspension by up to 7 days — but only after giving the worker the right to be heard (s 14(6)–(7)).
• Other disputes: complain in writing to the contracting entity (unless it is an individual or sole proprietor), which must resolve it through its internal grievance mechanism within 30 days (s 17).
• Unresolved disputes go to a Conciliator; if settlement is unlikely the Conciliator refers the matter to the Gig Workers Tribunal (s 19). Appeals from the Tribunal go to the High Court within 14 days of the award (s 44).

Laws cited on this page

Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →

Worked examples

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

Questions & answers

All questions & answers → · Ask your own →

Sources

• Employment Act 1955 (Act 265) — official text, Laws of Malaysia portal (AGC)
• Industrial Relations Act 1967 (Act 177) — official text, Laws of Malaysia portal (AGC)
• Gig Workers Act 2025 (Act 872) — official text, Laws of Malaysia portal (AGC)

Related

Employment Act 1955Industrial Relations Act 1967Employment law: your rights at workAnti-Sexual Harassment Act 2022Employees' Social Security Act 1969Getting legal help