Category Archives: Employment Act

Who is covered Employment Act in M’sia?

Employment Act 1955 covers the following persons:-

The Employment Act in Malaysia covers individuals under the description of “employee” and is defined under in the First Schedule Section 2(1) of the Employment Act 1955 and is summarized as follows. This act covers only West Malaysia

  1. based on wages (wages will not include commissions, substince allowance and overtime payment) and this must be RM2000/- or less
  2. regardless of nature of work;
  3. Must have a written contract;


  1. regardless of wage amount
  2. engaged in manual labor
  3. employees supervising those engaged in manual labor
  4. Drivers and other employees involved in the operation and maintenance of motorized vehicles
  5. Must have a written contract


The First Schedule of section 2(1) of The Employment Act 1955 is outlined in detail below :-

1. Any person, irrespective of his occupation, who has entered into a contract of service with an employer under which such person’s wages do not exceed two thousand ringgit a month.

2. Any person who, irrespective of the amount of wages he earns in a month, has entered into a contract of service with an employer in pursuance of which

(1) he is engaged in manual labour including such labour as an artisan or apprentice;

Provided that where a person is employed by one employer partly in manual labour and partly in some other capacity such person shall not be deemed to be performing manual labour unless the time during which he is required to perform manual labour in any one wage period exceeds one-half of the total time during which he is required to work to such wage period;

(2) he is engaged in the operation or maintenance of any mechanically propelled vehicle operated for the transport of passengers or goods or for reward or for commercial purposes;

(3) he supervises or oversees other employees engaged in manual labour employed by the same employer in and throughout the performance of their work;

(4) he is engaged in any capacity in any vessel registered in Malaysia and who:

(a) is not an officer certificated under the Merchant Shipping Acts of the United Kingdom as amended from time to time;

(b) is not the holder of a local certificate as defined in Part VII of the Merchant Shipping Ordinance, 1952; or

(c ) has not entered into an agreement under Part III of the Merchant Shipping Ordinance, 1952; (part XII of the Act is not applicable) or

(5) he is engaged as a domestic servant. (Section 12, 14, 16, 22, 61, and 64 and Parts IX, XII and XIIA of the Act not applicable)