Employment Relations & Compliance
The statutory foundation. Two Acts. Seven modules. Every provision you need to practise HR with legal confidence in Malaysia, from the Employment Act 1955 through the Industrial Relations Act 1967.
Seven Modules Spanning Two Foundational Acts
The subject is split into two parts: Modules 1–4 cover the Employment Act 1955 (Act A1651); Modules 5–7 cover the Industrial Relations Act 1967 (2020 & 2024 amendments).
The Legal Foundation
Scope and territorial application of the EA 1955 post-2023. Key definitions (wages, ORP, contract of service). ILO framework and Malaysia's treaty obligations. Contracts of service (Ss. 6–17A), payment of wages (Ss. 18–23), deductions and the S.24 50% aggregate cap, termination procedures, and the S.14 due inquiry obligation.
Statutory Entitlements
Maternity leave (98 days, S.37), paternity leave (7 days, S.60FA), rest days (S.59–60), hours of work and overtime limits (S.60A), public holidays (S.60D), annual leave tiers (S.60E), sick leave and hospitalisation deeming (S.60F). Sustained calculation practice using the ORP formula and the S.18A incomplete month formula.
Workplace Protection & 2023 Reforms
The FWA framework (Ss. 60P–60Q) and the 60-day employer obligation. Sexual harassment provisions (Part XVA, Ss. 81A–81H) including the mandatory notice requirement (S.81H) and the employee's right to terminate (S.81E). Anti-discrimination (S.69F). Foreign employee protections (Part XIIB, Ss. 60K–60O). Domestic employees (Part XI).
Enforcement, Compliance & Assessment Readiness
Director General powers (S.69), inspection regime (Part XIV), forced labour (S.90B), offences and penalties (Part XVII), corporate officer liability (S.101B), forum splitting between DG and Industrial Court (S.69A), the IRA 1967 interplay, and a 2026 HR compliance checklist with 11 audit points.
Architecture of Industrial Relations Law
Purpose, legislative history, and constitutional framework of the IRA 1967. Key definitions: workman, employer, trade union, trade dispute, collective agreement. Section 4, rights of workmen. Section 5, employer rights and managerial prerogatives. Interaction with the EA 1955 and the Trade Unions Act 1959.
Collective Relations: Unions, Bargaining & Industrial Action
Trade union recognition (S.9). The new Sole Bargaining Rights provisions (Ss. 12A & 12B, effective September 2024). Collective bargaining (S.13) including Phase 2 expansions. Collective agreements, content, legal effect, and backdating. Industrial disputes, strikes, lock-outs, picketing. Essential services (S.44A). The Industrial Court structure and jurisdiction.
Dismissal, Justice & Applied HR Practice
Section 20 unfair dismissal: the 60-day rule, just cause or excuse test, constructive dismissal. Domestic inquiry, the 4 stages and procedural fairness. Post-2021 automatic referral pathway. Industrial Court awards: reinstatement, back wages (24-month cap), interest. Section 33C, High Court appeal within 14 days. Malaysia's ILO obligations (Conventions 87, 98, 155). Case studies, HR scenario analysis, and the top 10 IR pitfalls.
What You Will Be Able to Do After This Subject
Outcomes mapped to Bloom's Revised Taxonomy, from recall through to critical evaluation and document creation.
State the scope of the EA 1955 and identify covered employees post-2023
Recall key statutory definitions including wages, ORP, contract of service, employee, employer, and domestic employee. List entitlements under Parts IX and XII. Identify ILO Conventions reflected in the 2023 amendments.
Apply statutory formulae to real payroll scenarios
Use the S.18A incomplete month formula and S.60I(1A) ORP formula to calculate wages, overtime, rest day pay, and public holiday pay. Distinguish lawful from unlawful deductions. Analyse misconduct scenarios against S.14(1) due inquiry obligations.
Evaluate FWA and sexual harassment compliance
Assess whether an employer's FWA response complies with the 60-day S.60Q obligation. Apply Part XVA provisions to determine employer obligations and employee remedies including the S.81E right to terminate.
Formulate legally grounded multi-issue advice
Assess multi-issue employment scenarios across multiple Parts of the EA. Map disputes to the correct forum (DG or Industrial Court). Critically evaluate the cumulative effect of Act A1651 on an organisation's compliance posture and recommend 2026 audit priorities.
Explain the IRA 1967 framework and recent amendments
Describe the purpose of the IRA 1967, the 2020 and 2024 amendment timelines, and the interaction with the EA 1955. Differentiate definitions of workman, employer, trade dispute, and collective agreement.
Master dismissal, bargaining, and dispute resolution
Navigate the S.20 process including the 60-day rule and the post-2021 automatic referral. Apply the sole bargaining rights framework. Advise on Industrial Court award risks and the 14-day S.33C appeal window.
Skills That Transfer Directly to Your Desk
Every skill developed in this subject has immediate workplace application across Malaysian HR practice.
Legal Literacy & Statutory Interpretation
Read primary legislation independently. Identify operative provisions, qualifying conditions, and exceptions. Advise management on legality of HR policies with direct section references.
Analytical & Critical Reasoning
Apply IRAC reasoning to multi-issue scenarios. Identify threshold changes in applicable law. Prepare structured DG and Industrial Court submissions.
Numerical & Computational Accuracy
Apply ORP formula, S.18A formula, overtime rates, leave encashment, deduction caps, and termination benefit calculations. Audit payroll against statutory minima.
Communication & Advisory Skills
Translate complex statutory provisions into plain-language guidance. Draft compliant HR correspondence, Show Cause letters, FWA responses, redundancy letters.
Risk Assessment & Compliance Management
Identify legal exposure before it becomes a complaint. Conduct EA 1955 compliance audits. Design FWA tracking systems and S.81H notice protocols.
Negotiation & Conflict Resolution
Lead collective bargaining. Manage DGIR conciliation. Negotiate MSA packages. Facilitate JCC sessions on automation and restructuring.
Ethical Judgment & Employee Advocacy
Distinguish what an employer can do from what it should do. Apply proportionality to disciplinary decisions. Navigate tension between management prerogative and statutory rights.
Stakeholder & Tripartite Engagement
Engage with trade unions, DGIR, MEF, and the Industrial Court as an informed participant. Manage multiple union relationships in the new competitive unionism landscape.
Built for These Roles
Employment law literacy is not optional, it is the baseline that separates competent HR administrators from strategic HR advisors.
Practitioner-First. Statute-Anchored. Assessment-Aligned.
Scenario-Based Learning
Every module anchored by extended workplace scenarios from Malaysian manufacturing, services, logistics, and technology sectors.
Statutory Anchoring
Section references embedded throughout. You graduate citing the Act, not relying on secondary summaries.
Calculation Practice
Sustained wage, overtime, and leave calculation exercises using statutory formulae with active retrieval methodology.
Live Self-Audit
Real-time compliance checks: S.81H notice audit, FWA tracking, deduction cap verification applied to your own workplace.
Interleaved Content
2023 amendments woven through all modules, not siloed. New provisions encountered in the context of the broader framework.
Tripartite Perspective
Every provision examined from State (regulatory intent), Employer (risk), and Employee (rights) viewpoints simultaneously.
How You Are Assessed
Written Assignments (×4)
One per EA module. Each requires critical analysis, statutory citation, IRAC reasoning, and practical HR recommendations. Graded Pass / Merit / Distinction.
MCQ Bank (60 Questions)
15 scenario-based questions per module testing recall, interpretation, and applied statutory reasoning across all Bloom's levels.
Case Study Analysis (IRA)
Scenario analysis and portfolio assignments requiring applied compliance reasoning, dismissal procedure evaluation, and simulated domestic inquiry exercises.
About This Subject
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