Akta Kerja 1955: Overtime Provisions Deep Dive

The Employment Act 1955 applies to:

• Employees earning ≤RM4,000/month — all provisions apply fully
• Manual labourers — regardless of salary level
• All employees (post-2022 amendment) — core protections on working hours, holidays, termination, and maternity now extend to all workers regardless of salary

Note: Domestic servants and certain categories have separate provisions under the Act.

Maximum Overtime: 104 Hours/Month

No employee shall be required to work overtime exceeding 104 hours in any one month.

Hourly Rate Calculation

Ordinary rate of pay ÷ 26 ÷ normal hours of work per day

Post-2022: Normal working hours reduced from 48 to 45 hours per week.

For employees engaged in shift work:

• Working hours may exceed 8 hours/day or 45 hours/week provided the average over a period of 3 weeks does not exceed 45 hours/week
• No shift shall exceed 12 consecutive hours (inclusive of breaks)
• Employees must receive a rest period of not less than 30 consecutive minutes for every 5 consecutive hours of work
• Shift workers are entitled to the same OT rates when exceeding normal shift hours

Every employee is entitled to 11 gazetted public holidays per year at ordinary rate of pay:

• National Day (31 August)
• Birthday of the Yang di-Pertuan Agong
• Birthday of the Ruler/Yang di-Pertua Negeri
• Workers' Day (1 May)
• Malaysia Day (16 September)
• Plus 6 more from the list of gazetted holidays chosen by the employer

If required to work on a public holiday: entitled to 3× the hourly rate of pay for hours worked, in addition to the holiday pay.

Leave is pro-rated for incomplete years of service. Unused leave may be forfeited if not taken within 12 months unless otherwise agreed.

Employers must maintain employment records for a minimum of 6 years after the records are made. Records must include:

• Hours of work (normal and overtime)
• Wages paid (including OT, allowances, deductions)
• Leave records (annual, sick, maternity/paternity)
• Employment contracts and terms
• Rest day and public holiday records

Records must be kept at or accessible from the place of employment and produced upon request by the Director General of Labour.

• Working hours reduced: Maximum from 48 to 45 hours/week
• Expanded coverage: Core protections (working hours, holidays, termination, maternity) now apply to all employees regardless of salary
• Flexible Working Arrangements (FWA): Employees may apply in writing; employers must respond within 60 days
• Maternity leave: Increased from 60 to 98 days
• Paternity leave: 7 consecutive days (new provision)
• Discrimination prohibition: Explicit protection against employment discrimination
• Forced labour: New offence with penalties up to RM1,000,000 fine and imprisonment

Repeated offences may result in higher fines and/or imprisonment. The Director General may also issue compliance orders.