LABOUR Day, also known as Hari Pekerja or Hari Buruh, is celebrated on May 1 each year.
It is a public holiday dedicated to honouring the contributions of workers to the country’s development and prosperity.
Numerous activities, such as marches, exhibitions, and parades, are planned on this day to recognise the rights and accomplishments of workers.
This is a common opportunity for labour unions and other organisations to advocate for better working conditions, fair wages, and labour rights.
Did you know that the Department of Labour Sarawak is in charge of safeguarding workers and upholding the nation’s labour laws?
The department falls under the Ministry of Human Resources and is headquartered in Kuching. It operates 16 offices throughout the state.
Their goals include maintaining decent welfare protection for all workers, uplifting employers’ interests towards labour law standard compliance, and fostering a conducive working environment for both employees and employers.
The department also aims to sustain our industrial capability and enhance the economic competitiveness of our industrial community as it faces future challenges and new technological advancements. Additionally, the department seeks to empower and improve labour management effectiveness and efficiency in their service delivery.
Consequently, any employee who feels oppressed by their employer can file a complaint and receive appropriate assistance by visiting any nearby Labour office.
As we commemorate Labour Day today, let’s explore some topics that are frequently discussed in relation to this occasion.
For the reader’s knowledge, all the information presented here was sourced from the Department of Labour Sarawak’s official website.
Minimum wages
Section 23 of the National Wages Consultative Council Act 2011 [Act 732] defines the minimum wage as the basis pay, exclusive of any allowances or other payments.
The minimum wage is payable to all private employees based on the terms and conditions of their respective service contracts. Workers in micro-industries, non-profit organisations, houses of worship, part-time employees, and casual workers are all included in this.
However, this order shall not apply to a domestic servant.
According to the department, private workers are defined as any person or group of people specified in subsection 2(1) of the Employment Act 1955, subsection 2(1) of the Sabah Labour Ordinance, and subsection 2(1) of the Sarawak Labour Ordinance.
Since sections 60L of the Employment Act 1955, 118B of the Sabah Labour Ordinance, and 119B of the Sarawak Labour Ordinance prohibit discrimination between local and foreign workers, foreign workers are also entitled to the minimum wage under the order. Sarawak’s minimum wage is as follows:
With effect from May 1, 2022, the minimum wage of RM1,500 will be applied to employees employed by an employer who employs five or more employees, and regardless of the number of employees employed, an employer who carries out a professional activity classified under the Malaysia Standard Classification of Occupations (MASCO) as published officially by the Ministry of Human Resources;
The minimum wage of RM1,500 will also be implemented for employees employed by an employer who employs less than five employees, as of Jan 1, 2023, with the exception of those listed in Paragraph 2 A (ii); and
From May 1, 2022, to Dec 31, 2022, the minimum wage rates payable to an employee employed by an employer who employs less than five employees are RM1,200 for those who work in city council or municipal council areas and RM1,100 for those who work in areas other than city council or municipal council.
Just so you know, even if the workers consent, employers are not permitted to offer base salaries that are less than the minimum wage.
Additionally, without written authorisation from the Department of Labour Sarawak’s director, employers aren’t allowed to deduct earnings from employees’ salaries in order to cover the cost of uniforms or housing rent.
Employee layoffs
As per the Department of Labour Sarawak, a layoff means the termination of a service contract due to the closure of the company or overstaffing.
Numerous factors, including corporate reorganisations, decreased output, mergers and acquisitions, technological advancements, and more, can result in overstaffing.
However, this does not apply to terminating service contracts as a result of employee dismissal or disciplinary action.
If laid-off workers are protected by a collective agreement or the Labour Ordinance (Sarawak Chapter 76), they are entitled to minimum severance benefits.
Generally, employees who are protected under the Labour Ordinance (Sarawak Chapter 76) and involved in layoffs are eligible to claim the following statutory benefits:
• Wages in lieu of notice: Employees who are terminated without being given a sufficient notice period can claim payment of wages in lieu of notice (indemnity). It must be paid by the last day of the service contract termination.
• Termination benefits: Under the Labour Rules (Sarawak) (Termination and Lay-Off Benefits) 2008, an employee is also entitled to certain days of wages, depending on the length of employment: 10 days’ wages if he is employed for less than two years; 15 days’ wages if he is employed for more than two years but less than five years; and 20 days’ wages if he is employed for more than five years.
• Employees are entitled to written details about the amount of the total termination benefits and how the calculation is made. Termination benefits must be paid no later than seven days from the date the employee is terminated.
• Payment in lieu of remaining annual leave, if any; and
• Salary balance.
Meanwhile, the following benefits are available to laid-off employees who have signed the collective agreement and are members of a trade union:
• Compensation as stipulated in the collective agreement; or
• In the event that the employee is dissatisfied with the dismissal action taken by their employer, they may file a dismissal representation under Section 20 (1) of the Industrial Relations Act 1967.
If they are not protected by the collective agreement or the Labour Ordinance (Sarawak Chapter 76), the employees are subject to the terms and conditions under the service contract or the employer’s discretion regarding the amount of compensation to be received.
Any employee who has been laid off may:
• Notify the nearest labour office of any suggestions or layoffs that their employer intends to or has already implemented;
• Visit the MYFutureJobs portal or the closest Social Security Organisation (SOCSO) office; and
• Verify that any applicable severance benefits or compensation have been received.
It should be noted that commissions, allowances, and overtime pay are not covered by the Labour Ordinance (Sarawak Chapter 76), which only applies to employees earning RM2,500 or less per month.
Individuals with monthly incomes exceeding RM2,500 are required to rely on common law principles and the specific terms of their employment contracts.
It is important to keep in mind that while the ordinance imposes obligations on employers to safeguard workers, especially those who are less able to bargain, it also expects workers to take responsibility for their work.
On this day, it’s a time to reflect on the importance of labour and the role it plays in shaping Malaysia’s society and economy.
In the meantime, members of the public can approach the Department of Labour Sarawak at Level 13, Bangunan Sultan Iskandar, Jalan Simpang Tiga, if they have any inquiries concerning labour-related matters.
Additionally, you can reach them by phone at 082-242261 or 082-414062, or visit their website at jtkswk.mohr.gov.my.
