The importance of job security in the form continuity in employment in an organisation up to the normal retirement age applies to the general working population. Unfortunately, job loss justified by the economic and business needs is an inevitable and painful consequences of a corporate restructuring or reorganisation process. Downsizing can happen when the business no longer requires the same number of employees it used to because the functions of the employee have either ceased or diminished to a significant extent.

The recent Covid pandemic, for example, has placed much strain on businesses, especially government-imposed lockdown and movement control across the globe make it difficult to secure new business or continue with ongoing projects. It is, however, essential that the termination of an employment contract on the grounds of redundancy must flow from justifiable grounds which must be bona fide and be untainted by any unfair labour practice.

This updated edition provides a comprehensive coverage on the recent and significant developments in the law and practice of retrenchment in Malaysia. Written by authors who have wide experience in employment law, this book makes regular reference to statutory sources and cases from the courts to explain the working of the law and practise of retrenchment. This book will certainly provide much-needed information to employers, employees and their legal advisers.

Key Features

comprehensive coverage
practical and easy-to-read
clear explanation of statutory requirements
consideration of local and foreign cases as well as Industrial Court awards
extensive coverage of Code of Conduct for Industrial Harmony
discussion of retrenchment from the Islamic Law Perspective
the concepts and the causes leading to redundancy;
retrenchment and lay-off;
steps an employer should follow when there is a need to retrench;
situations where a retrenched worker would be able to recover compensation;
circumstances where a retrenched employee may contest the retrenchment exercise;
preferential entitlement of an employee in the event the employer goes into liquidation;
proposal for the setting up of a retrenchment fund and the mechanism of its functioning;
retrenchment from the Islamic law perspective and the usage of Zakat money to assist unemployed Muslims until they secure new employment.

The Employment Act 1955 is a crucial governing legislation to matters involving employment law in Malaysia. In 2022, there were several amendments gazetted via the Employment (Amendment) Act 2022 (Act A1651) and Employment (Amendment of First Schedule) Order 2022 (PU(A) 262/2022) that modernised and widened the protection accorded to persons employed in Malaysia. These amendments will be coming into force on 1 January 2023.

The Malaysian Employment Act 1955 Handbook is designed to provide persons in Human Resources, and Employment Law sectors with a concise and comprehensive reference to all the recent amendments to the Employment Act 1955. This handbook equips readers with a complete guide to the new provisions for quick and easy implementation in compliance with the law.

This handbook comprises:

• The complete text of the Employment Act 1955 with amendments incorporated in the relevant sections.
•  A Pre-amendment vs Post-amendment Comparison Table.
• Frequently Asked Questions (FAQs) addressing general queries relating to the application of the new law.
• Supplementary Reading comprising other relevant legislation and the Malayan Law Journal Articles related to Labour Law in Malaysia.

Key changes, including minimum wage, flexible working arrangements, maternity and paternity leave, foreign employees, and promoting a respectful workplace are addressed in a practical manner, succinctly presented in simple and plain language to cater to readers from all industries.

Table of contents