MALAYSIAN INDUSTRIAL RELATIONS & EMPLOYMENT LAW Author: Maimunah Aminuddin

1. MALAYSIAN INDUSTRIAL RELATIONS & EMPLOYMENT LAWAuthor: Maimunah Aminuddin Chapter Eight The Industrial Court Malaysian Industrial Relations & Employment Law

2. Preview • Purpose of the Industrial Court • Disputes arbitrated by the Court • Claims for reinstatement • Retrenchment of employees Malaysian Industrial Relations & Employment Law

3. The Industrial Court • The main objective of the Industrial Court is to provide a peaceful and unbiased means of settling disputes between employers and employees. • The Court arbitrates disputes when conciliation fails. Malaysian Industrial Relations & Employment Law

4. The Industrial Court, cont. The Court’s awards (decisions) are made by: • aPresident, and. • a number of chairmen. Malaysian Industrial Relations & Employment Law

5. The Industrial Court, cont. Disputes heard by the Court include: • Trade disputes between trade unions and employers • Claims for reinstatement by individual workers • Claims of non-compliance with a CA or an award of the Court • Requests for interpretation of a CA or an award Malaysian Industrial Relations & Employment Law

6. The Industrial Court, cont. Trade disputes arbitrated by the Court relate either to: • an individual grievance where the worker is represented by his union, or • a dispute relating to a collective agreement. Malaysian Industrial Relations & Employment Law

7. The Industrial Court, cont. Claims for Reinstatement • Under Section 20 Industrial Relations Act, a dismissed employee may file a claim for reinstatement within 60 days of his dismissal. • Claim is made at Department of Industrial Relations. • If conciliation is successful, case closed. Malaysian Industrial Relations & Employment Law

8. The Industrial Court, cont. Claims for Reinstatement • If conciliationunsuccessful,Minister of Human Resources is authorised by the Act to decide whether or not to refer the dispute to the Industrial Court. • If dispute is referred to Court, a hearing will be held. Malaysian Industrial Relations & Employment Law

9. The Industrial Court, cont. Claims for Reinstatement • After hearing theevidencepresented by the employer and the employee, the Court will decide whether the employee was dismissedwith or without just cause or excuse. • If Court decides dismissal was with just cause and excuse,dismissal is upheld. Malaysian Industrial Relations & Employment Law

10. The Industrial Court, cont. Claims for Reinstatement • If Court decides dismissal waswithout just cause or excuse, Court will either: • orderreinstatementof employee,OR • order employer to paycompensation. Malaysian Industrial Relations & Employment Law

11. The Industrial Court, cont. Claims for Reinstatement Compensation: One month’s wages for every year employee’s service with the employer AND Backwages from date of dismissal to date of Court award, but a maximum of 24 months is imposed by law Malaysian Industrial Relations & Employment Law

12. Retrenchment of employees • Employers have the right to terminate an employee’s contract when he is surplus to the employer’s needs, i.e. he is redundant. • To be fair, a retrenchment exercise should comply with the Code of Conduct for Industrial Harmony. Malaysian Industrial Relations & Employment Law

13. Retrenchment of employees, cont. Employers are expected to take steps to avoidretrenching workers such as: • Freezing recruitment of workers and re-deploying redundant workers into vacancies that arise • Limiting or ceasing overtime/public holiday work Malaysian Industrial Relations & Employment Law

14. Retrenchment of employees, cont. • Reducing working hours and wages (with consent of employees) • Conduct a Voluntary Separation Scheme (VSS) Malaysian Industrial Relations & Employment Law

15. Retrenchment of employees, cont. If retrenchment cannot be avoided, employer must: • Choose who to retrench based on: • FOF • LIFO Malaysian Industrial Relations & Employment Law

16. Retrenchment of employees, cont. • Give proper notice to the employees concerned • Pay termination benefits where required Malaysian Industrial Relations & Employment Law

17. Retrenchment of employees, cont. Which employees are entitled to termination/retrenchment benefit? • Employees within the scope of the Employment Act • Employees within the scope of a CA • Employees who have a clause providing for retrenchment benefit in their contract of employment Malaysian Industrial Relations & Employment Law

18. Retrenchment of employees, cont. Termination/ Retrenchment benefit under the Employment Act: • Employees with less than 1 year’s service:No benefit • Employees with more than 1 year & less than 2 years: 10 days wages for each year of service Malaysian Industrial Relations & Employment Law

19. Retrenchment of employees, cont. • Employees with more than 2 years and less than 5 years: 15 days wages for each year of service • Employees with more than 5 years: 20 days wages for every year of service Malaysian Industrial Relations & Employment Law

20. Review • Purpose of the Industrial Court • Disputes arbitrated by the Court • Claims for reinstatement • Retrenchment of employees Malaysian Industrial Relations & Employment Law