Malaysia – National Regulations in Employment Law


We, the International Labour and Employment Group of Rödl & Partner, are happy to advise you on labour law issues (individual and collective) as well as social security law issues on a global, regional and local level. 
Below you will find basic information on national labour law provisions in Malaysia.

Interview with Geetha Salva

Are there national and/or local collective agreements in the country that regulate labour relations?

No. Labour collective agreement can only be entered between an employer or a trade union of employers on the one hand and a trade union of workmen on the other.

Are there different legal rules by department/canton?


Is there and what is the staff threshold above which the presence of staff representatives is mandatory?


Are trade unions present in the company?

Not compulsory.

If applicable what is the applicable legal working time? 

Maximum 45 hours a week. Flexible working hours can be requested.

Is there a minimum wage set by law/collective agreements (yes/no)? 

Yes. By the law and, if more favorable, by collective agreements.

What is the number of legal annual paid holidays?

8 – 16 calendar days paid holiday per year depending on the tenure of service.

Existence of specific classification of employees according to their functions/responsibilities? 

No. But can be determined by employer.

Obligation to set up complementary social insurance schemes (mutual insurance/provident fund/pension)?

Yes. All workers must registered under the Employees Provident Fund, Social Security Organisation, Employee Injury and Insurance Scheme.

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