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Learn more about the Employee Management in Malaysia
Employee management is a broad phrase that incorporates all areas of employee management, development, and communication. Thus, people management is concerned with assisting employees to perform at their peak every day in order to meet the company’s overall objectives. As a result, excellent employee management guarantees that the employer and employees have a positive working relationship. The employment relationship is the legal connection that exists between the employer and the employees. It exists when a person does work under specific circumstances for monetary compensation. Themis Partner provides you all the documents you will need to manage your employees such as Employment Contract, Warning Letter, Employee Confidentiality Agreement and many others.
Table of contents
What is the status of an employee in Malaysia?
An employee is someone who gets paid a salary in exchange for doing work. As a result, under labor law, an employee has a protected status. Salaried work indicates a legal subordination connection between employees and the person who hires them.
Workers in Malaysia are classified into three skill levels. Managers, professionals, technicians, and associate professionals are examples of skilled employees. Semi-skilled employees include those in secretarial assistance, sales, machine operators, and agricultural skilled laborers. Cleaners, assistants, and laborers are examples of low-skilled workers.
EA and Non-EA Employees
The contrast between EA Employees and non-EA Employees is significant, since non-EA Employees’ employment terms and conditions are normally freely changeable between employer and employee. In principle, most non-EA employees would be contractually entitled to benefits equal to or better than those given under the Employment Act.
EA workers are those who are legally protected under the Employment Act of 1955. You are an EA employee if you earn less than RM2,000 per month or if you work in physical labor regardless of your pay grade.
What are the laws governing employee management?
The Employment Act of 1955 (EA) and the Industrial Relations Act of 1967, constitute the legal basis for Malaysia’s employment and industrial relations ecosystem. It applies in Peninsular Malaysia and the Federal Territory of Labuan. As long as the employee is covered by the EA, any terms and conditions of the employment contract that are less favorable than the requirements of the EA or any other regulations imposed thereunder will be “invalid,” according to Section 7 of the EA.
How to hire foreign employees?
Companies that hire foreigners must acquire foreign quota permission from the Ministry of Home Affairs’ Local Centre of Approval.
Foreign workers are permitted to work for Malaysian enterprises in agriculture, construction, manufacturing, plantation, and services.
Employers must submit the required documentation to the Immigration Department after the criteria have been satisfied.
Following quota approval, the employer must submit to the Immigration Department the employment pass application and a letter stating why the post must be filled by a foreigner. A letter of approval for the employment permit will be given after it has been authorized.
Employers should be aware that only specific roles are open to foreigners, which are often highly skilled or technical professions that cannot be filled by locals. Among the roles available are:
|➤ Top management positions in Malaysia for foreign firms|
|➤ Positions requiring advanced technical skills and expertise|
|➤ Professional or mid-level management jobs|