Archive for Category: Articles

Showing 1 – 10 of 84 results

  • Malaysia Employment Law Updates as of 25th October 2017

    Malaysia Employment Law Updates as of 25th October 2017 Employment Insurance Scheme (EIS) Bill 2017: Tabled on 1 August 2017. Now deferred to the next reading on October 2017. Provides for post-exit benefits and re-employment assistance. Percentage of wages can be claimed for up to 6 months of unemployment for job search. Other claims include for early re-employment, reduced income and career counselling and training. EIS will be administered by SOCSO. The EIS contribution is...
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  • Whats the difference in managing disciplinary issues between intentional misconduct and conduct due to negligence and lack of training in Malaysia?

    Whats the difference in managing disciplinary issues between intentional misconduct and conduct due to negligence and lack of training in Malaysia? In managing disciplinary issues it is vital to discern the difference between intentional misconduct and conduct due to negligence, and lack of training. Intentional misconduct has the element of deliberate action that requires decisive disciplinary action. As for negligence the understanding of underlying cause, severity and implications of a...
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  • In a case of criminal misconduct. How does the High Court sees it?

    In a case of criminal misconduct. How does the High Court sees it? Case Study: I Bhd v. K A Sandurannehru Ratnam & Anor [2004] 5 CLJ 460 What?!! In a case of criminal misconduct, all that is needed by an employer is just reasonable grounds for believing or reasonable suspicion amounting to a belief in the guilt of the employee that the misconduct had been committed at the time of dismissal? The answer to the above may be affirmative as decided by the High Court in I Bhd v. K A Sandurannehru...
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  • Highlight of the week: Employment Insurance System (EIS) Bill 2017

    Highlight of the week: Employment Insurance System (EIS) Bill 2017 (In chronological order from 7/8/17 until 1/8/17) “We will not delay this meeting. It is a tripartite responsibility between the Government, employers and workers so that all three parties can come to an agreement on the Bill said Minister in the Prime Minister’s Department Datuk Seri Dr Wee Ka Siong. Dr Wee said it was still too early to know if there would be amendments to the Bill but gave his assurance that “all parties...
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  • Is it a checkmate for a company if it fails to state the reason of an employee’s dismissal in his letter of termination?

    Is it a checkmate for a company if it fails to state the reason of an employee's dismissal in his letter of termination? Perhaps it is not. There may still be a second chance for the company. Arguably, the company may still subsequently put up the reason for dismissal in court (by way of pleadings) and the court has the right to enquire into the grounds for the termination as decided in the case of City Bayview Hotel Penang, The -V- Eddy Samuel [2004] 3 ILR 364. Article by: Mahadi Muhammad...
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  • How do you determine whether an employee is a confirmed employee or still a probationer in Malaysia?

    How do you determine whether an employee is a confirmed employee or still a probationer in Malaysia? Abu (not his real name) believed that he is a confirmed employee as he had completed his probationary period of 3-month and had been working in the company for 1 year. The company had neither extended his probationary period nor confirmed his position in writing. Is Abu a confirmed employee or still a probationer? O.P. Malhotra in his authoritative text book, ‘The Law of Industrial Disputes,...
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  • How should an employer deal with a non-performer in Malaysia?

    How should an employer deal with a non-performer in Malaysia? Generally, there are three (3) requirements that need to be satisfied by an employer before it may terminate an employee on ground of poor-performance. The said three (3) requirements are as decided in numerous cases one of which is in the case of Ireka Construction Berhad -v- Chantiravathan A/L Subramaniam James [1995] 2 ILR 11 wherein the Industrial Court held as follows:- “As far as unsatisfactory performance is concerned the...
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  • The new Employment Insurance Scheme (EIS) bars Employers from cutting wages and benefits in Malaysia

    The new Employment Insurance Scheme (EIS) bars Employers from cutting wages and benefits in Malaysia Based on report as per the Malay Mail Online, the novel Bill for the Employment Insurance Scheme or better known as EIS was tabled for the first reading in the Dewan Rakyat by Human Resource Minister Datuk Seri Richard Riot Jaem today. The EIS seeks to extend welfare coverage for the country’s 6.5 million private workers by compelling employers to contribute additional payment and bar them...
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  • Can’t terminate a Manager on a ground that the Manager is not performing because the Manager had not been warned of any shortcomings in Malaysia?

    Can't terminate a Manager on a ground that the Manager is not performing because the Manager had not been warned of any shortcomings in Malaysia? A Manager tells his superior "Boss, you can't terminate me on a ground that I am not performing because you had not warned me of any shortcomings". Is the Manager right? He is probably not. If an employee is holding a managerial position, the need for warning is less apparent as deliberated by the Industrial Court in the case of Palette Multimedia...
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  • Can an action be taken against a rude employee? Can he or she be dismissed?

    Can an action be taken against a rude employee? Can he or she be dismissed? Generally, the law on this issue states that an isolated incident of rudeness does not merit the penalty of dismissal as in the case of Kie Gwan Shipping (M) Sdn. Bhd. -v- Govindasamy A/L Muniandy [1991] 2 MELR 117. However, if the employee's action and behavior of being rude and sarcastic is not an isolated incident (for instance, if it had happened before on a number of different days and/or occasions) an action of dismissal...
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