Overview of Industrial Relations in Malaysia: Key Concepts and Laws

This report provides a detailed overview of industrial relations in Malaysia, focusing on key aspects such as the definition of industrial relations, its importance, and the stakeholders involved. It explores the tripartite system, including the roles of employers, employees, and the government, and the role of the Ministry of Human Resources. The report also covers the concept of industrial harmony, its significance, and the major laws governing Malaysian industrial relations, including the Employment Act 1955, the Industrial Relations Act 1967, and the Trade Unions Act 1959. Furthermore, it highlights the essential sections of the Employment Act 1955 and clarifies who needs to understand the theory and practice of industrial relations, including workers, managers, lawyers, trade union leaders, and HR/IR professionals. This information is crucial for understanding the dynamics of the workplace and ensuring harmonious relationships between employers and employees in Malaysia.

PART B: LECTURE 10-
MALAYSIAN INDUSTRIAL
RELATIONS
SEPTEMBER 2010

OVERVIEW
 INTRODUCTION
 INDUSTRIAL RELATIONS IN LOCAL CONTENT
 INDUSTRIAL HARMONY
 MINISTRY OF HUMAN RESOURCE
 3 MAJOR LAWS THAT GOVERN THE MALAYSI
INDUSTRIAL RELATIONS
 WHO NEEDS TO UNDERSTAND?

1. INTRODUCTION

1.1 INTRODUCTION TO SUBJEC
 Industrial relations/labour relations: study of relatio
between employees and their employers pertaining
employees employment or non-employment, terms
conditions of work, grounds of termination of emplo
etc.
 It also refers to the management of employees wel
internal communications.
 Industrial relations stresses the importance of 3 ma Relationship between employers and trade unions The framework provided by the employment laws Disciplinary procedures and termination of the employm
contract

1.2 DEFINITION
 Interaction between the employer and the
employee or the trade union in the work pla
 Its role is to strengthen the harmonious rela
between the employer and to avoid any form
exploitation and discrimination in the wo
or outside of the workplace.

1.3 INGREDIENTS IN AN INDUSTR
RELATIONSHIP
INDUSTRIAL
RELATIONSHIP
The employer
• Party that offers an
employment. Employer can
be individual, a company or
any type of organization or
society which has paid
employees for the job done
The employee
• People who accept an
employment offered by
the employer on terms
and conditions of service
agreed either verbally
or properly written in a
contract of service. An employment
• Employment can be full-
time job or part-time job
that agreed by both
employee and employer.

2. INDUSTRIAL RELATIONS IN LOC
CONTENT

INDUSTRIAL RELATION IN LOCAL CONTEXT

2.1 INDUSTRIAL RELATIONS SYST
IN MALAYSIA
 Is recognised as a tripartite system and is made up of 3 groups and Ministry of
Resources act as a president. His role is to oversee the overall development of
 Includes Employers and their organizations. Employees and their unions. Government.
 Machinery for discussion in tripartite system. National Labor Advisory Council (NLAC) which is made up of 14 representativ
employees, 14 from employers and 12 from government. Minister of Human Resources will chair the NLAC meetings and appoints the
representatives. Other representatives are appointed after consultation from Malaysian Empl
Federation (MEF), Malaysian Trade Union Congress (MTUC) and Congress of
Employees in Public and Civil Service (CUEPACS). Meeting is held twice a year or when there is urgency (eg: to approve amme
the law).

2.2 ROLE OF EMPLOYERS AND TH
ORGANIZATIONS
 Promote and protect the interest of their me
 To negotiate and deal with trade unions of
employees
 To represent their members in any trade dis
between an individual member and employe
union

2.3 ROLE OF EMPLOYEES AND TH
UNIONS
 An employee has a right under Section 4 of
Industrial Relations 1967 to join a trade unio
 Types of union Private sector Represented by Malaysian Trade Union Congress(M Issues include minimum wages for workers, cost of
foreign workers Public sector Represented by The Congress of Unions in The Publ
Civil Service(CEUPACS)

2.4 ROLE OF GOVERNMENT IN TH
INDUSTRIAL RELATIONS SYSTEMS
 Legislator through parliament
 Administrator- through the Ministry of Human Reso To protect the welfare of employees-safety, health and Promote good employer-employee relationship through
and peaceful Industrial Relations system To equip the unemployed with basic industrial skills and
improve the skill level of the workforce To assist in maximizing country’s manpower resources
manpower planning
 Participant- by being the largest employer in the co Employee in the public, private and government sectors