Analysis Case Compliance Assignment HRM581 PDF

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HRM581 Analysis Compliance6. Public Holiday  The public holiday stated in the contract does not comply with Employment Act 1955.  The employers are required by the Employment Act to provide employees with a minimum of 11 public holidays each year. However, in the contract, Aina Niliyyah just been ...

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HRM581 Analysis Compliance 6. Public Holiday  The public holiday stated in the contract does not comply with Employment Act 1955.  The employers are required by the Employment Act to provide employees with a minimum of 11 public holidays each year. However, in the contract, Aina Niliyyah just been acknowledged with 9 days of public holiday in Malaysia.  The missing part in the holidays are The Labour Day and Yang di-Pertua Birthday or The Birthday of State Ruler.  Based on the gazette eleven public holidays given, the four days of which shall be: 

The National Day

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Yang di Pertuan Agong birthday

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Yang di-Pertua Negeri birthday or The Federal Territory day.

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Workers or labour day

 Section 60 of the Employment Act of 1955 provides that an employee who is prepared to work on a public holiday is entitled to get two days' salary for the regular rate of pay.

7. Annual Leave  In the contract, Aina Niliyyah is entitled to 16 annual leave if she worked for twelve months complete which is breach with the Employment Act.  Section 60E of Employment Act 1955, define that every employee has the rights for paid Annual Leave if only he/she has been completed the 12 months of services.  Furthermore, based on section 60E (1)(a), (b) and (c), employees in Malaysia are entitled to be paid yearly leave in which is calculated based on the period or days of employment as followed: 

Employees who have worked for 1-2 years get 8 days off each year.

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For individuals who have worked for 2-5 years, 12 days each year are eligible.

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Employees who have worked for more than 5 years are entitled to 16 days each year.

 Indirectly, Aina Niliyyah is entitled to get only 8 days per year for annual leave if she works for twelve month or one year.

8. Sick Leave 8.1 The sick leave that stated in the contract is breach with The Employment Act 1955. It is state that Aina Niliyyah is entitled to 10 paid sick leave in a year.  The stated sick leave in the contract does not comply with the Employment Act 1955 because based on section 60F (1) of The Malaysian Employment Act 1955 which defines that the amount of paid sick days is determined by the experience of work. Employees who do not require medical attention or hospitalization are eligible to obtain: 

14 days will be entitled each year if the employee has worked with the company in about one or two years.

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18 days will be entitled each year for employee that work with the company for two to five years.

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22 days will be entitled each year if the employee worked with the company for more than 5 years.

 Besides that, if hospitalization is been required, employees are eligible to up to 60 days of paid medical leave each year, as addition to any sick leave. 8.2 Based on the stated rule in the contract, the management have right to deduct the employee wages if the employee does not provide the sick leave certificate or forging the medical certificate.  It has been stated in Section 60F (b) of EA 1955 defines employees who is absent their self on sick leave without alerting his employer within 48 hours, he/she is assumed to be absent without his employer's approval.  Besides that, according to section 14 in the Employment Act of 1955, after a thorough investigation, an employer may dismiss or terminate an employee for misbehaviour that is inconsistent with the fulfilment of the terms in their employment.

9. Medical Benefit  The medical benefit amount that stated in the contract is comply with the Employment Act 1955.  Inpatient expenses are significantly expensive than outpatient prices since inpatient treatment consumes more hospital resources, such as beds and healthcare workers' time. Indirectly, the amount of benefit for outpatient and inpatient that stated in the contract was adequate for the medical benefit of an employee.

10. Termination of Employment  The termination of employment in this contract was comply with the Employment Act 1955.  The court has approved the termination, but it must be done in good faith and in accordance with the law. The termination must also be done with "just cause or excuse." An employee who was fired without any reasonable cause and justification can make a report to the Director of Industrial Relations to request reinstatement, this is according to section 20(3) of the Industrial Regulation Act 1951.

10.1 If the employee has breached any one or more restrictions of the contract.  This has been stated in section 13 (2) Employment Act 1955, In the incidence of a wilful breach of a service contract by the other party, any party has the right to cancel the contract immediately and without warning. 10.2 If the employee was absent from work for more than three (3) consecutive working days without any reasonable excuse or prior approval.  This has been stated in section 15 of the EA 1955, “An employee is observed to have breached the contract of service with the employer if he is continually absent from work for more than 2 consecutive working days without permission from his employer,” unless he has: 

A valid excuse for such absence.

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Takes notified and tried to tell his employer of the reason for his absence before to or as soon as possible during his absence.

10.3 If the doctor certified the employee to be medically and permanently unfit for the employment.  For serious diseases, the industry will offer a full pay leave for the first six months, half pay leave for the following six months and no pay leave for last six months and after which the firm may decide to terminate the employment contract.

10.4 Upon confirmation of employment, your service with the company may be terminated by either party giving the other two months’ notice in writing or the equivalent of two month’s salary in lieu.  Section 12 of the EA of 1955 defines “Termination with notice as follows: Either party to a contract agreement may provide the other party with written notice of his or her intention to cancel the service contract at any time”. Dismissal  The dismissal that stated in the contract is a direct dismissal and it is comply with the Industrial Relation Act 1967 which has been mention in section 20 Industrial Relation Act 1967 which says that dismissal should be done with just cause and excuse. Each case's fair cause and justification must be founded on the facts of the case, which may include misconduct, neglect, or lack of performance.

11. EPF & SOCSO  The EPF and SOCSO contribution rate that stated in the contract was followed and comply with The Employee Provident Fund Act 1991 and also The Employees' Social Security Act 1969. Employment Provident Fund (EPF)  The employer must deduct an employee's contributions rate from his or her salary and send the money to the fund together with the employee's personal contributions. It is a crime to fail to make EPF contributions. Section 43 (1) of the EPF Act 1991 define that, "Every employee and every employer of a person who is an employee within the meaning of this Act shall be liable to pay monthly contributions on the amount of wages at the rate set out in the Third Schedule."  Section 43 (1A) of the EPF Act 1991 also states that “The monthly contributions of every employee and employer who are subject to the minimum wages order made under the National Wages Consultative Council Act 2011 should also not be less than the monthly contributions based on the amount of the minimum wages for the month as determined by the minimum wage laws order at the rate set out in the Third Schedule”.

Social Security Organization (SOCSO)  The rule about SOCSO that stated in the contract is required in Employees Social Security Act 1969 and Employees Social Security Regulation 1971. The Employment Injury Insurance Scheme and the Invalidity Pension Scheme are the two types of programmes offered by SOCSO.  As stated in the latest contribution rates, “The employer must pay 1.75% percent, while employees must contribute 0.5% of their salaries”. Both contribution rates are dependent on the employee's total monthly salary and payments must be made from the first month of employment.

Conclusion  Finally, Malaysian employment law attempts to strike a balance between the right of employees to be productive in the workplace and the right of employers to select how to run their companies, includes hiring and dismissing people. The regulation is not unfairly weighted in favor of the employee as long as an employer cares, from the beginning of the work relationship until the conclusion, to guarantee that the employee is treated in an equal and honest way in good faith.

References Khalil, M. D. B. A. (2020, September 21). Medical and Hospitalization Leave in Malaysia. A Job

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https://www.ajobthing.com/blog/medical-and-

hospitalization-leave-in-malaysia Leave Entitlement in Malaysia. (2020, April 22). Legal Smart Malaysia. Retrieve from https://legalsmart.my/leave-entitlement-malaysia/ Malaysia. EMPLOYMENT ACT, 1955. (2013, February 16). Natlex Database. Retrieve from https://www.ilo.org/dyn/natlex/docs/WEBTEXT/48055/66265/E55mys01.htm Geyzel, M. (2016, January 13). Access denied | themalaysianlawyer.com used Cloudflare to restrict

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https://themalaysianlawyer.com/2016/01/13/employee-dismissals/

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