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Industrial Relations & Employment Laws

Industrial Relations encompass the regulation of employer-employee relationships which includes the regulation of employer-unions relationship. As such, as whole industrial relations is primarily between employers, employees and their trade unions. Malaysian industrial relations are governed basically by 2 laws: The Employment Act 1955 (EA) and the Industrial Relations Act 1967 (IRA) and are supplement by Trade Unions Act 1959 (TUA).

The Industrial Relations Act 1967 governs employer union relations which include matters relating to trade unionism which encompasses issues like employees’ and employers’ right to organize themselves in trade unions to protect their respective interest. It also involves issues relating to union recognition conclusive bargaining and dispute resolution.

The Employment Act 1755 (EA) basically governs employer-employee relations which are essentially contractual in nature. Primarily the employer-employee relationship is in the form of ‘contract of service’. The EA also lays out basic and minimum terms and conditions of employment in which every employee is legally entitled; e.g. annual leave, sick leave, maternity, public holidays, rest days, termination, layoff and maternity benefits etc.

The Trade Union Act 1959 (TUA) governs trade unions and it registers their composition, registration and their membership. It also stipulates their right, powers, duties and responsibilities. One important fact is that the Act does not govern employer-union relationship.

Thus EA, IRA and TUA are federal laws and they are administered by 3 departments in the same federal agency that is the Ministry of Human Resources (MOHR). The EA is administered by the Department of Labor, the IRA by the Department of Industrial Relations and the TUA by the Department of Trade Union Affairs. Each department is headed by a Director- General who is accountable to the Minister of Human Resources.

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