The major employment laws in the country that directly impact the employment
relationship are the Employment Act 1955 (EA) and the Industrial Relations Act 1967
(IRA).The EA governs matters relating to employment in Malaysia and applies to
most employees whose wages do not exceed RM1,500 (USD 1= RM3.22) or who
are engaged in specified work (i.e., manual labor or supervising manual labor, or
operation or maintenance of a motor vehicle, irrespective of salary amount [“EA
employee”]).The employment terms and conditions of employees above this wage
level or those who are otherwise outside the ambit of the EA, are governed by common
law and by their employment contracts.The main areas covered by the EA are terms
relating to employment contracts, including the termination of contracts, maternity
protection, days and hours of work, annual leave, public holidays, termination and
lay-off benefits and methods of dealing with complaints and enquiries.