Employment Law: Part-Time Employees in Malaysia

Introduction

The need to protect this group of the employees in Malaysia was first heeded by parliament via the enactment of Employment (Amendment) Act 1998 which came into effect on 01.08.1998.

Despite it was first introduced in 1998, with such authority conferred on the then Human Resource Minister to further regulations in respect of the part-time employees, such as their hours of work and leave entitlements, it is only until year 2010 that such regulations were made and known as the Employment (Part-time Employees) Regulations 2010 (‘the 2010 Regulations’), which then came into force on 01.10.2010.

According to section 2(1) Employment Act 1955 (‘the EA’) as amended via the Employment (Amendment) Act 2012, a part-time employee means:-

(a) a person, who has entered into an employment contract or a contract of service with an employer under which such person’s wages do not exceed RM2,000-00 a month (including such person included in the First Schedule of the Employment Act 1955); and

(b) that person’s average hours of work per week are more than 30% but do not exceed 70% of the normal hours of work per week of a full time employee employed in a similar capacity by the same employer.

Where the normal hours of work of a full time employee cannot be ascertained, it shall be deemed to be 8 hours in 1 day or 48 hours in 1 week.

Non-Application

However, it must be mindful that part-time employees do not cover:-

(a) casual employee who is engaged occasionally or irregularly whose working hours in one week does not exceed 30% of the normal working hours of a full time employee in one week; and

(b) home working employee who performs work for an employer within his own residence, irrespective of occupation.

Overtime Payment for Part-Time Employees

Should part-time employee work beyond his normal hours of work, the employer shall pay the part-time employee for overtime work at the following rates:-

(a) at a rate of not less than 1 time of the part-time employee’s hourly rate of pay if the overtime work does not exceed the normal hours of work of a full time employee employed in a similar capacity in the same enterprise; and

(b) at a rate of not less than 1 ½ time of the part-time employee’s hourly rate of pay if the overtime work exceeds the normal hours of work of a full time employee employed in a similar capacity in the same enterprise.

Holidays for Part-Time Employees

Part-time employee shall be entitled to a paid holiday of not less than 7 of the gazetted public holidays, four of which shall be:-

(a) the National Day;

(b) the Birthday of the Yang di-Pertuan Agong;

(c) the Birthday of the Ruler or the Yang di-Pertua Negeri, of the State in which the part-time employee works, or the Federal Territory Day, if the part-time employee works in the Federal Territory; and

(d) the Worker’s Day.

Part-time employee shall also be entitled on any day declared as a ad hoc public holiday under section 8 of the Holidays Act 1951.

Basically, should the part-time employee is required by his employee to work on holiday, he shall be paid not less than 3 times of his daily rate of pay. Same principal apply should he be required to work overtime on the said holiday.

Annual Leave for Part-Time Employees

Part-time employee shall be entitled to at least the number of paid annual leave as follows depending on the number years of their service:-