1) Explain briefly the definition of an „employee‟ in the Employment Act1955.
Answer: The Employment Act 1955 defines an "employee" as any person who has entered into a contract of service with
an employer. This includes individuals who work under a contract of service or apprenticeship, regardless of their
occupation, trade, or industry.
2) Explain the term 'contract of service' in relation to the Employment Act 1955.
Answer: In relation to the Employment Act 1955, a "contract of service" refers to an agreement between an employer and
an employee where the employee agrees to provide their services or work in exchange for wages or remuneration. This
contract establishes the legal relationship and rights and obligations between the employer and the employee.
3) Do contract of employment must be in writing?
Answer: No, a contract of employment does not necessarily have to be in writing. It can be oral or implied, and it is still
legally binding under the Employment Act 1955. However, it is generally recommended to have written contracts to avoid
any misunderstandings or disputes.
4) State the difference between „contract of service‟ and „contract for services‟.
Answer: In the context of employment, a "contract of service" refers to an agreement where an individual is employed as
an employee and has a direct relationship with the employer. On the other hand, a "contract for services" refers to an
agreement where a person is engaged to provide services as an independent contractor or self-employed individual. The
distinction lies in the nature of the relationship and the level of control exercised by the parties involved.
5) Define „wages‟ and explain its meaning.
Answer: "Wages" refers to the compensation or payment that an employer provides to an employee in exchange for the
work or services rendered. It is the monetary remuneration that an employee receives for their employment, typically on a
regular basis, such as weekly, biweekly, or monthly. Wages can include salary, hourly pay, commissions, bonuses, or any
other form of agreed-upon payment for the work performed.
6) How many days annual leave are employees entitled to?
Answer: Under the Employment Act 1955, employees in Malaysia are entitled to 14 days of annual leave after completing
12 months of continuous service with the same employer.
7) How many days sick leave are employees entitled to?
Answer: Employees in Malaysia are entitled to 14 days of sick leave per year under the Employment Act 1955.
8) Employees who are covered by the Employment Act, will be entitled to 11 paid public holidays in a year. State those 11
gazetted public holidays and 5 of those which are compulsory.
Answer: The 11 gazetted public holidays in Malaysia are New Year's Day, Hari Raya Aidilfitri (2 days), Hari Raya Haji, Awal
Muharram, Chinese New Year (2 days), Wesak Day, Deepavali, Christmas Day, and the King's Birthday. Out of these, the 5
compulsory public holidays are New Year's Day, Hari Raya Aidilfitri (1 day), Hari Raya Haji, Merdeka Day, and Malaysia
Day.
9) What is the meaning of the following words relating to employment?
a) Termination;
b) Dismissal
c) Lay-off;
d) Retrenchment; and
e) Instant dismissal
a) Termination;
b) Dismissal
e) Instant dismissal
Answer: a) Termination: Termination refers to the end or cessation of employment, either by the employee or the employer.
b) Dismissal: Dismissal refers to the termination of employment by the employer due to reasons such as misconduct, poor
performance, or other valid grounds.
c) Lay-off: Lay-off refers to a temporary suspension or cessation of employment by the employer due to reasons such as
economic downturn or lack of work.
d) Retrenchment: Retrenchment refers to the permanent termination of employment by the employer due to reasons such
as business restructuring, financial difficulties, or technological advancements.
e) Instant dismissal: Instant dismissal (also known as summary dismissal) refers to the immediate termination of
employment by the employer without any prior notice or opportunity for the employee to rectify any wrongdoing. It typically
occurs in cases of serious misconduct or breaches of employment contract.
10) Explain the rules on termination of an employment contract.
Answer: Under Malaysian employment law, termination of an employment contract can occur through various means.
Termination can be initiated by either the employer or the employee. It is important to note that there are specific rules and
procedures that must be followed to ensure lawful termination. For example, an employer must provide notice or payment
in lieu of notice to terminate an employee's contract, unless there are valid grounds for instant dismissal. Similarly, an
employee who wishes to terminate their contract may need to provide notice as specified in their employment agreement. It
is advisable to consult the Employment Act 1955 or seek legal advice for specific details regarding termination procedures.
11) What is Dismissal without notice?
Answer: Dismissal without notice refers to the termination of an employment contract by the employer without providing
any prior notice to the employee. It can occur in cases of serious misconduct or breach of contract by the employee. This
type of dismissal is immediate and does not require the employer to give the employee any opportunity to rectify their
actions. However, it is important for employers to ensure that the dismissal without notice is justified and in accordance with
the relevant employment laws and regulations.
12) What qualifies for UNFAIR DISMISSAL and what are the circumstances that can be regarded as AUTOMATIC UNFAIR
DISMISSAL?
Answer:
Answer: Unfair dismissal occurs when an employee is terminated in a manner that is considered unjust, unreasonable, or
without valid grounds. Circumstances that can be regarded as automatic unfair dismissal include termination based on
discriminatory reasons such as race, gender, religion, or disability. Other examples of automatic unfair dismissal include
dismissal for participating in trade union activities, whistleblowing, or exercising statutory rights such as maternity leave or
requesting flexible working arrangements. It is important for employers to follow proper procedures and ensure that
dismissals are fair and lawful.
13) What qualifies Statutory FAIR REASONS for DISMISSAL?
Answer: Statutory fair reasons for dismissal include factors such as misconduct, poor performance, redundancy, or legal
restrictions that prevent the employee from continuing their employment. These reasons are considered valid grounds for
termination, provided that proper procedures and due process are followed. It is important for employers to ensure that the
reasons for dismissal fall within the scope of the law and are applied fairly and reasonably.
14) Briefly explain CONSTRUCTIVE DISMISSAL.
Answer: Constructive dismissal refers to a situation where an employee is forced to resign due to the employer's actions or
behavior that make continued employment intolerable. It occurs when the employer breaches the employment contract or
creates a hostile work environment, leaving the employee with no other option but to resign. In such cases, the resignation
is treated as a dismissal, and the employee may be entitled to compensation or pursue legal action for unfair dismissal.
15)
Answer: If an employee has been unjustifiably dismissed, they may be entitled to various remedies. These can include
reinstatement, where the employee is rehired by the employer, or compensation, which aims to financially compensate the
employee for the loss suffered due to the unfair dismissal. The specific remedies available may vary depending on the
jurisdiction and the circumstances of the case. It is advisable for the employee to seek legal advice to understand their
rights and options for seeking redress.
16) In relation to and in the context of dismissal of employees, explain the term „misconduct‟.
Answer: Misconduct refers to actions or behavior by an employee that violates company policies, rules, or standards of
conduct. It can include things like dishonesty, insubordination, harassment, or theft. When an employee engages in
misconduct, it can be grounds for disciplinary action or even dismissal by the employer. It's important for employees to
understand and adhere to the expected standards of behavior in the workplace to avoid any potential consequences.
17) What are the differences between lay-off and retrenchment?
Answer:
Answer: Lay-off and retrenchment are both terms used to describe situations where employees are no longer required to
work for an employer. However, there are some differences between the two.
Lay-off typically refers to a temporary suspension of work or a reduction in working hours due to reasons such as economic
downturns, seasonal fluctuations, or unforeseen circumstances. During a lay-off, employees are often not provided with
work or wages, but they remain employed by the company and are expected to return to work when the situation improves.
On the other hand, retrenchment refers to a permanent termination of employment due to reasons such as organizational
restructuring, financial difficulties, or technological advancements that make certain job roles redundant. In retrenchment,
employees are usually provided with notice or severance pay, and their employment with the company comes to an end.
It's important to note that the specific definitions and legal implications of lay-off and retrenchment may vary depending on
the employment laws and regulations of each country or jurisdiction.