THE RIGHTS OF EMPLOYEES: WORKING HOUR LABOUR LAW

LEARNING OUTCOME 1 Explain the terms and conditions in the contract of employment in relation to working hours.(C2)

REST DAY The employment Act requires all employees to be permitted one rest day per week. When a daily rated employee agrees to work on his rest day, i.e., if he works less than half his normal hours of work, he is to be paid one full days’ wages and if he works between half the normal hours and the full hours he is entitled to two days’ wages. A monthly rated employee who works on a rest day will not only receive his normal monthly wages, but he is entitled to an extra half day’s wages for up to a half-day’s work and full days’ wages if he works between half the normal hours and a full day. If an employee works overtime on a rest day, he will be paid at the rate or two times his hourly rate of pay of pay for each hour of overtime.

MAXIMUM WORKING HOUR According to the Act, the maximum working hour per day that can be required of an employee are eight. With overtime, this can be increased to 12 (overtime is voluntarily in most circumstances). If the organisation does not require the employee to work six full days per week, then the daily working hours can be increased to nine.

Usually any lunch and tea breaks are not considered working hours unless employees are not free to leave the premises. In this situation, working hours will be inclusive of such breaks. The Director-General of Labour has the authority to exempt any group of employees from this provisions on working hours. A number of organisations have been granted such exemptions; especially those in the tourism industry.

OVERTIME Most employees have the right to reject any request to do overtime unless they have agreed in the contract of employment to work overtime when requested to do so. If the employees work in any of essential services, which includes banking, transport, electricity, water and a gas supply they can be order to work overtime.

If not working in essential services, may also be ordered to work overtime in certain limited circumstances. For example; where there has been an accident at the place of work, if there is urgent maintenance work to be done, or there has been interruption of work which is impossible to foresee, perhaps caused by an electricity breakdown.

Currently, the maximum number of hours of overtime that can be worked is 104 hours per month. Any employer who allows an employee to work overtime than permitted by the law commits an offence. Rates of pay for overtime work for monthly rated workers are 1.5 times the hourly rate of pay.

PUBLIC HOLIDAYS Employment Act only entitles workers to 10 public holidays per year whereas Malaysia has 16 or 17 such holidays. Four of the 10 public holidays are fixed which are the labour or Worker Day, Independence Day, the birthday of YDPA and the birthday of state ruler. The employers can choose six more days for the employees. If an employer wishes to offer more public holidays to employees, of course he may do so.

If a worker is requested to work on public holiday, he must be paid at premium rates i.e two day’s extra wages over his pay even if he works less than his normal daily hours. Overtime on a public holiday is paid at the rate of three times the worker’s hourly rate of pay. When a public holiday falls on a worker’s rest day, the next day will automatically be considered his public holiday. By mutual agreement between employer and employee, a public holiday to which the employee is entitled can be substituted with any other day.

ANNUAL LEAVE Employees are only entitled to annual leave once they complete a year of service. The duration of annual leave granted depends on their length of service. Workers with less than two years service are entitled to eight days per year, those with 2 – 5 years can take 12 days per year. Those work more than 5 years can get 16 days leave.

The Employment Act does not; a) Provide for the procedure to apply for the leave; b) Emergency leave is not provided. c) The practice of carrying forward the unused leave. Any employee who absents himself without permission, commit misconduct. In a situation if the employee has applied for the leave and then being rejected, at the end of the year the employer is required to pay the employee one day’s pay for every day due to him.

SICK LEAVE Must be examined and certified by unfit by the medical doctor appointed by the employer (panel doctor). Exception in the case of emergency. The employer is required to pay for the medical bills. Sick leave entitlement depends on the length of service. less than 2 years- 14 sick leave per year. 2 – days more than 5 years – 22 days.

When hospitalisation is required, the employee is entitled to up to 60 days’ of paid medical leave per year inclusive of any sick leave entitlement.