By:
Bryan Lui (Co-Managing Partner) [bryan_lui@luibhullar.com]
Harneshpal Karamjit Singh (Co-Managing Partner) [harnesh_bhullar@luibhullar.com]
Navigating the Malaysian Labour Court: A Step-by-Step Guide for Filing and Defending Claims
Introduction
In Malaysia, the "Labour Court," overseen by the Department of Labour (Jabatan Tenaga Kerja), addresses employment disputes like unpaid wages, overtime, and breaches of the Employment Act 1955 (EA). Unlike the Industrial Court, which handles unfair dismissal and trade union matters, the Labour Court focuses on disputes arising during employment. It's crucial to understand that while it's often referred to as a "court," it's officially an inquiry process conducted by a Labour Officer.
Understanding the Labour Court / Industrial Court
The Labour Court, despite its courtroom-like setting, is not a formal court like those established under the Federal Constitution or the Industrial Relations Act 1967. This was affirmed in Austral Amalgamated Tin Bhd and Another Appeal v Abdul Wahab Bin Kopon & Ors and Another Appeal [2004] 2 MLJ 193, where it was clarified that it's an inquiry venue, not a subordinate court.
What Cases Does the Labour Court Handle?
The Labour Court handles a wide range of disputes, including:
Unpaid Wages and Benefits:
Maternity allowance, overtime, minimum wage, salary in lieu of notice (Section 69(1) & 69(2)(iii) EA).
Employee Misconduct and Punishment:
Disputes related to disciplinary actions (Section 69(3) EA).
Contractor Disputes:
Claims by labour contractors against principals, contractors, or subcontractors (Section 69(2) EA).
Discrimination in Employment:
Complaints of workplace discrimination (Section 69F EA).
Sexual Harassment Complaints:
Addressing sexual harassment issues (Section 81D EA).
Premature Retirement Disputes:
Matters related to the Minimum Retirement Age Act 2012.
Employment Act Offences:
Investigations and potential criminal proceedings for breaches of the EA (Section 79 EA).
The Labour Court / Industrial Court Process: A Step-by-Step Guide
Stage 1: Lodging a Complaint In the Labour Court / Industrial Court
File a written complaint with the nearest Department of Labour, outlining the grievance and desired remedy.
Provide supporting documents:
Personal details (IC address).
Company details (SSM records).
Payslips and income details.
Employment contract or appointment letter.
Termination letter (if applicable).
Detailed case information.
Stage 2: Inquiry and Scheduling
The Labour Officer examines the complaint and may conduct preliminary inquiries.
Conciliation may be attempted.
If unresolved, an inquiry date is set.
Stage 3: Issuing Summons
Summons are issued to the respondent (usually the employer), detailing the complaint, date, time, and location of the inquiry.
Both parties can bring witnesses and request summons for them.
Stage 4: Inquiry Day
The inquiry resembles a court trial:
Complainant presents their case (under oath).
Respondent and Labour Officer can question the complainant.
Witnesses provide testimony.
Both parties can be represented by an advocate and solicitor (lawyer).
Failure to attend may result in a decision in absentia.
Stage 5: Decision and Order
The Labour Officer issues a decision, which may include rectification orders, penalties, or monetary compensation (no limit on amount, 8% interest possible).
A formal Order is issued to the complainant (Section 70 EA).
Stage 6: Appeal to the High Court
Dissatisfied parties can appeal to the High Court within 14 days of the Order (Section 77 EA).
Stage 7: Enforcement
If the Order is not complied with, the complainant can request a certified copy to be sent to the Sessions Court or Magistrates Court.
The Order becomes enforceable as a court judgment, allowing for civil enforcement procedures.
Impact of Recent Amendments
The Employment (Amendment) Act 2022 has significantly expanded the EA's applicability, now covering all employees under contracts of service. This means more cases can be heard in the Labour Court, increasing its importance in resolving employment disputes.
Seeking Legal Assistance
Navigating the Labour Court can be complex. Consulting an employment lawyer Malaysia or an employment law firm in Kuala Lumpur is highly recommended. If you believe you have been unfairly dismissed, you should seek a wrongful termination lawyer in Malaysia. For assistance with your employment contract, contact an employment contract lawyer in Malaysia. If you have experienced discrimination, consult a workplace discrimination lawyer in Malaysia.
For guidance on your rights, connect with an employee rights lawyer in Malaysia. For general employment law advice in Malaysia or to understand the labour law in Malaysia, or for matters relating to industrial relations lawyer in Malaysia, seek professional help. If you're searching for “employment lawyers near me,” ensure they have experience with Malaysian labour law.
This article provides general information and should not be considered legal advice. Always consult with a qualified legal professional for advice tailored to your specific situation.
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