Employment Act Malaysia

The training is structured with a half-day focus on Employment Act theory and legal compliance (morning

session), followed by hands-on system training

COURSE OBJECTIVE

At the end of this course, participants shall be able to：

  • Understand the objectives of Employment Act 1955’s impact on payroll

  • Distinguish between Contract of Service and Contract for Service, and understand the different definitions of wages under various laws

  • Identify the different types of employees (Full Time, Part Time, Fixed Term, Open Term) and their respective entitlements

  • Differentiate between wages and salary in management, and understand the Minimum Wages Order 2024

  • Understand normal hours of work, overtime regulations, and spread-over of work hours under the new amendments

  • Calculate overtime pay at Ordinary Rate of Pay (ORP) and understand limits on overtime hours

  • Understand rest days, controls on compulsory work on rest days, and payment rates for work done

  • Apply the correct formula for value of a day’s pay and salary for incomplete months

  • Calculate statutory minimum annual leave entitlements, encashment, forfeiture, and carry-forward of leave

  • Understand compulsory and non-compulsory public holidays, and payment rates for work on public holidays

  • Calculate paid and unpaid sick leave, hospitalisation leave, and handle leave beyond entitlement limits

  • Understand paternity leave, paid maternity leave, maternity allowance, and eligibility requirements

  • Process EPF contributions, SOCSO contributions, and EIS contributions for local and foreign workers

  • Calculate Income Tax Monthly Deductions (MTD/PCB), including tax exemptions, rebates, and tax on benefits

  • Understand statutory notice periods, contractual notice periods, and calculate payment in lieu of notice

  • Understand retrenchment benefits, Voluntary Separation Scheme (VSS), and termination benefits

Training Methodology

How the Training Works – The morning session combines short concept explanations with case study discussions on the Employment Act.

Real Business Scenarios – Participants solve real-life case studies including wrongful leave carry-forward calculations, improper OT payments, termination benefit disputes, and statutory deduction errors that could lead to company prosecution and back pay claims.

What Participants Will Do

Learn about wages, overtime, leave entitlements, statutory deductions, termination benefits, and legal compliance under the Employment Act 1955 through real-world case studies .

For Who

This programme is suitable for:

  • Directors & Senior Management
  • Payroll Specialists & Administrators –
  • Compensation & Benefits Specialists
  • Finance Personnel
  • HR Personnel (All Levels)
  • Administrative & Operations Staff –
  • Department Heads & Executives
  • Legal & Compliance Staff
  • Business Owners & SMEs

TIMETABLE

Back To Page