THE Employment Act 1955 enforced in Peninsular Malaysia is an important piece of legislation which prescribes the minimum protection of rights to workers. The broad purpose of the Act is to protect employees by guaranteeing certain minimum standards in their conditions of employment.
Parties to an employment contract must abide by the minimum conditions laid down by the Act, including the payment of wages; restrictions in the deduction of workers’ wages; maternity protection; and prescribing the rest days in each week, maximum hours of work a day, public holidays each year, annual leave, sick leave and overtime rates payable for extra hours of work.