EMPLOYMENT ACT | My Assignment Tutor

LAWS OF MALAYSIA_____________ONLINE VERSION OF UPDATEDTEXT OF REPRINT_____________Act 265EMPLOYMENT ACT 1955As at 30 April 20122EMPLOYMENT ACT 1955First enacted … … … … 1955 (F.M. OrdinanceNo. 38 of 1955)Revised … … … … 1981 (Act 265 w.e.f.18 February 1982)Latest amendment made byP.U. (A) 88/2012 whichcame into operation on … … 1 April 2012PREVIOUS REPRINTSFirst Reprint … … … 1975Second Reprint … … … 2001Third Reprint … … … 20063LAWS OF MALAYSIAAct 265EMPLOYMENT ACT 1955ARRANGEMENT OF SECTIONSPART IPRELIMINARYSection1. Short title and application 2.2A.2B.InterpretationMinister may prohibit employment other than under contract of serviceGeneral power to exempt or exclude 3. Appointment of officers4. Appeals5. Effect on Act of other written lawsPART IICONTRACTS OF SERVICE6. Saving of existing contracts7. More favourable conditions of service under the Act to prevail7A. Validity of any term or condition of service which is more favourable7B. Removal of doubt in respect of matters not provided for by or under this Act8. Contracts of service not to restrict rights of employees to join, participate inor organize trade unions4 Laws of Malaysia ACT 265Section9. (Deleted)10. Contracts to be in writing and to include provision for termination11. Provision as to termination of contracts12. Notice of termination of contract13. Termination of contract without notice14. Termination of contract for special reasons15. When contract is deemed to be broken by employer and employee16. Employees on estates to be provided with minimum number of days’ workin each month 17.17A.(Omitted)Apprenticeship contracts excluded from sections 10 to 16 PART IIIPAYMENT OF WAGES18. Wage period19. Time of payment of wages20. Payment on normal termination of contract21. Payment on termination of contract in special circumstances and on breachof contract22. Limitation on advances to employees23. Wages not due for absence from work through imprisonment or attendancein courtPART IVDEDUCTIONS FROM WAGES24. Lawful deductionsEmployment 5PART VSYSTEM OF PAYMENT OF WAGESSection25. Wages to be paid through bank25A. Payment of wages other than through bank26. Conditions restricting place at which, manner in which and person withwhom wages paid to be spent, illegal27. Interest on advances forbidden28. Restriction on places at which wages may be paid29. Remuneration other than wages30. (Deleted)PART VIPRIORITY OF WAGES31. Priority of wages over other debts32. Reference by the court to Director GeneralPART VIICONTRACTORS, PRINCIPALS AND CONTRACTORS FOR LABOUR33. Liability of principals and contractors for wages33A. Information relating to supply of employeesPART VIIIEMPLOYMENT OF WOMEN34. Prohibition of night work35. Prohibition of underground work36. Prohibition of employment by Minister6 Laws of Malaysia ACT 265PART IXMATERNITY PROTECTIONSection37. Length of eligible period and entitlement to maternity allowance38. Payment of maternity allowance39. Payment of allowance to nominee on death of female employee40. Loss of maternity allowance for failure to notify employer41. Payment of allowance to nominee42. Restriction on dismissal of female employee after eligible period43. Conditions contrary to Part void44. Register of allowances paid44A. Application of this Part irrespective of wages of female employeePART XEMPLOYMENT OF CHILDREN AND YOUNG PERSONS45-56. (Deleted)PART XIDOMESTIC SERVANTS57. Termination of contract57A. Employment of foreign domestic servant 57B.Duty to inform Director General of termination of service of foreigndomestic servant PART XIIREST DAYS, HOURS OF WORK, HOLIDAYS AND OTHER CONDITIONSOF SERVICE 58.58A.(Omitted)Non-application of Part XII 59. Rest day60. Work on rest dayEmployment 7Section 60A.Hours of work60B.Task work60C.Shift work60D.Holidays60E.Annual leave60F.60G.60H.60I.Sick leave(Omitted)(Omitted)Interpretation PART XIIATERMINATION, LAY-OFF, AND RETIREMENT BENEFITS60J. Termination, lay-off and retirement benefitsPART XIIBEMPLOYMENT OF FOREIGN EMPLOYEES60K. Duty to furnish information and returns60L. Director General may inquire into complaint60M. Prohibition on termination of local for foreign employee60N. Termination of employment by reason of redundancy60O. Permanent resident exempted from this PartPART XIIIREGISTERS, RETURNS AND NOTICE BOARDS61. Duty to keep registers62. Power to make regulations requiring information as to wages63. Duty to submit returns63A. Duty to give notice and other information64. Duty to display notice boards8 Laws of Malaysia ACT 265PART XIVINSPECTIONSection65. Powers of inspection and inquiry66. Inspecting officer to notify presence67. Powers of inspecting officers68. Officers to be authorized by the Director GeneralPART XVCOMPLAINTS AND INQUIRIES 69.69A.Director General’s power to inquire into complaintsLimitation on power conferred by section 6969B.Additional powers of Director General to inquire into complaints69C.Claims for indemnity for termination of contract without notice69D.Order of Director General may be in writing69E.Penalty for offence 70. Procedure in Director General’s inquiry71. Director General’s record of inquiry72. Joinder of several complaints in one complaint73. Prohibitory order by Director General to third party74. No fees for summons: service of summons75. Enforcement of Director General’s order by Sessions Court76. Submission by Director General to High Court on point of law77. Appeal against Director General’s order to High Court78. Employee’s remedy when employer about to abscond79. Powers of Director General to investigate possible offences under this Act80. Examination on summons by the Director General81. Right of employee to appear before the Director GeneralEmployment 9PART XVASEXUAL HARASSMENTSection81A. Interpretation81B. Inquiry into complaints of sexual harassment81C. Findings of inquiry by employer81D. Complaints of sexual harassment made to the Director General81E. Effects of decisions of the Director General81F. Offence81G. Application of this Part irrespective of wages of employeePART XVIPROCEDURE82. Service of summons issued under Part XV83. Power to make reciprocal provisions between Malaysia and Singapore forthe service, execution and enforcement of summonses, warrants and orders84. Jurisdiction85. Prosecution85A. Right of audience86. Saving clause as to civil jurisdiction of courts87. Power of court imposing fine88. Effect of imprisonment89. Incapacity of Director General hearing inquiry90. Officers acting under Act deemed public servants90A. Protection of officersPART XVIIOFFENCES AND PENALTIES91. Under Parts III and IV92. Under Part V10 Laws of Malaysia ACT 265Section93. Under Part VIII94. Under Part IX95. (Deleted)96. (Deleted)97. Under Part XIII98. Under Part XIV99. Under Part XV99A. General Penalty100. Penalties for failure or non-compliance in relation to rest days, overtime,holidays, annual leave, and sick leave101. Offence in connection with inquiry or inspection101A. Power to compound offences101B. Offence by body corporate, etc.PART XVIIIREGULATIONS102. RegulationsPART XIXREPEAL AND SAVING103. Repeal and savingFIRST SCHEDULESECOND SCHEDULE11LAWS OF MALAYSIAAct 265EMPLOYMENT ACT 1955An Act relating to employment.[Peninsular Malaysia? 1 June 1957, L.N. 228/1957;Federal Territory of Labuan? 1 November 2000,P.U. (A) 400/2000]PART IPRELIMINARYShort title and application1. (1) This Act may be cited as the Employment Act 1955.(2) This Act shall apply to *Peninsular Malaysia only.Interpretation2. (1) In this Act, unless the context otherwise requires—?agricultural undertaking? means any work in which any employeeis employed under a contract of service for the purposes ofagriculture, horticulture or silviculture, the tending of domesticanimals and poultry or the collection of the produce of any plants ortrees;*NOTE—This Act has been extended to the Federal Territory of Labuan–see subsection 1(2) of theFederal Territory of Labuan (Extension and Modification of Employment Act) Order 2000 [P.U. (A)400/2000] w.e.f. 1 November 2000.12 Laws of Malaysia ACT 265?apprenticeship contract? means a written contract entered into by aperson with an employer who undertakes to employ the person andtrain or have him trained systematically for a trade for a specifiedperiod which shall not be less than two years in the course of whichthe apprentice is bound to work in the employer’s service;?approved amenity or approved service? means any amenity orservice—(a) approved by the Director General under subsection 29(2) onapplication made to him by an employer for its inclusion in acontract of service; or(b) provided for in any award made by the Industrial Court or inany collective agreement;?approved incentive payment scheme? means an incentivepayment scheme approved by the Director General under, and for thepurposes of, section 60I;?collective agreement? has the same meaning assigned thereto inthe Industrial Relations Act 1967 [Act 177];?confinement? means parturition resulting after at least twenty-twoweeks of pregnancy in the issue of a child or children, whether aliveor dead, and shall for the purposes of this Act commence and end onthe actual day of birth and where two or more children are born atone confinement shall commence and end on the day of the birth ofthe last-born of such children, and the word ?confined? shall beconstrued accordingly;?constructional contractor? means any person, firm, corporation orcompany who or which is established for the purpose of undertaking,either exclusively or in addition to or in conjunction with any otherbusiness, any type of constructional work, and who or which iscarrying out such constructional work for or on behalf of some otherperson under a contract entered into by him or them with such otherperson, and includes his or their heirs, executors, administrators,assignees and successors;Employment 13?constructional work? includes the construction, reconstruction,maintenance, repair, alteration or demolition of any building, railway,harbour, dock, pier, canal, inland waterway, road, tunnel, bridge,viaduct, sewer, drain, well, dredge, wireless, telegraphic or telephonicinstallation, electrical undertaking, gaswork, waterwork or other workof construction, as well as the preparation for, or the laying of, thefoundations of any such work or structure, and also any earthworksboth in excavation and in filling;?contract of service? means any agreement, whether oral or inwriting and whether express or implied, whereby one person agreesto employ another as an employee and that other agrees to serve hisemployer as an employee and includes an apprenticeship contract;?contractor? means any person who contracts with a principal tocarry out the whole or any part of any work undertaken by theprincipal in the course of or for the purposes of the principal’s tradeor business;?contractor for labour? means a person who contracts with aprincipal, contractor or sub-contractor to supply the labour requiredfor the execution of the whole or any part of any work which acontractor or sub-contractor has contracted to carry out for a principalor contractor, as the case may be;?day? means—(a) a continuous period of twenty-four hours beginning atmidnight; or(b) for the purposes of Part XII in respect of an employeeengaged in shift work or in work where the normal hours ofwork extend beyond midnight, a continuous period oftwenty-four hours beginning at any point of time;?Director General? means the Director General of Labourappointed under subsection 3(1);?domestic servant? means a person employed in connection withthe work of a private dwelling-house and not in connection with any14 Laws of Malaysia ACT 265trade, business, or profession carried on by the employer in suchdwelling-house and includes a cook, house-servant, butler, child’snurse, valet, footman, gardener, washerman or washerwoman,watchman, groom and driver or cleaner of any vehicle licensed forprivate use;?employee? means any person or class of persons—(a) included in any category in the First Schedule to the extentspecified therein; or(b) in respect of whom the Minister makes an order undersubsection (3) or section 2A;?foreign domestic servant? means a domestic servant who is not acitizen or a permanent resident;?employer? means any person who has entered into a contract ofservice to employ any other person as an employee and includes theagent, manager or factor of such first mentioned person, and the word?employ?, with its grammatical variations and cognate expressions,shall be construed accordingly;?foreign employee? means an employee who is not a citizen;?Industrial Court? has the same meaning assigned thereto in theIndustrial Relations Act 1967;?industrial undertaking? includes—(a) disturbing, removing, carting, carrying, washing, sifting,melting, refining, crushing or otherwise dealing with anyrock, stone, gravel, clay, sand, soil, night-soil or mineral byany mode or method whatever;(b) industries in which articles are manufactured, altered,cleaned, repaired, ornamented, finished, adapted for sale,packed or otherwise prepared for delivery, broken up, ordemolished, or in which materials are transformed orminerals treated, including shipbuilding and the generation,Employment 15transformation and transmission of electricity or motivepower of any kind;(c) constructional work;(d) transport of passengers or goods by road, rail, water or air,including the handling of goods at docks, quays, wharves,warehouses or airports;(e) any industry, establishment or undertaking, or any activity,service or work, declared under subsection (5) to be anindustrial undertaking;?intoxicating liquor? has the same meaning as that assigned to?intoxicating liquor? under section 2 of the Customs Act 1967 [Act235];?machinery? has the same meaning as in the Factories andMachinery Act 1967 [Act 139];?medical officer? means a registered medical practitioner who isemployed in a medical capacity by the Federal Government, or by theGovernment of a State;?Minister? means the Minister charged with the responsibility forhuman resources;?part-time employee? means a person included in the FirstSchedule whose average hours of work per week as agreed betweenhim and his employer are more than thirty per centum but do notexceed seventy per centum of the normal hours of work per week of afull-time employee employed in a similar capacity in the sameenterprise;?Peninsular Malaysia? has the meaning assigned thereto by section3 of the Interpretation Acts 1948 and 1967 [Act 388], and includes theFederal Territory;?permanent resident? means a person, not being a citizen, who ispermitted to reside in Malaysia without any limit of time imposed16 Laws of Malaysia ACT 265under any law relating to immigration, or who is certified by theFederal Government to be treated as such in Malaysia;?place of employment? means any place where work is carried onfor an employer by an employee;?principal? means any person who in the course of or for thepurposes of his trade or business contracts with a contractor for theexecution by or under the contractor of the whole or any part of anywork undertaken by the principal;?registered medical practitioner? means a medical practitionerregistered under the Medical Act 1971 [Act 50];?sexual harassment? means any unwanted conduct of a sexualnature, whether verbal, non-verbal, visual, gestural or physical,directed at a person which is offensive or humiliating or is a threat tohis well-being, arising out of and in the course of his employment;?shift work? means work which by reason of its nature requires tobe carried on continuously or continually, as the case may be, by twoor more shifts;?spread over period of ten hours? means a period of ten consecutivehours to be reckoned from the time the employee commences workfor the day, inclusive of any period or periods of leisure, rest or breakwithin such period of ten consecutive hours;?sub-contractor? means any person who contracts with a contractorfor the execution by or under the sub-contractor of the whole or anypart of any work undertaken by the contractor for his principal, andincludes any person who contracts with a sub-contractor to carry outthe whole or any part of any work undertaken by the sub-contractorfor a contractor;?underground working? means any undertaking in which operationsare co

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nducted for the purpose of extracting any substance from belowthe surface of the earth, the ingress to and egress from which is bymeans of shafts, adits or natural caves;Employment 17?wage period? means the period in respect of which wages earnedby an employee are payable;?wages? means basic wages and all other payments in cash payableto an employee for work done in respect of his contract of service butdoes not include—(a) the value of any house accommodation or the supply of anyfood, fuel, light or water or medical attendance, or of anyapproved amenity or approved service;(b) any contribution paid by the employer on his own accountto any pension fund, provident fund, superannuationscheme, retrenchment, termination, lay-off or retirementscheme, thrift scheme or any other fund or schemeestablished for the benefit or welfare of the employee;(c) any travelling allowance or the value of any travelingconcession;(d) any sum payable to the employee to defray special expensesentailed on him by the nature of his employment;(e) any gratuity payable on discharge or retirement; or(f) any annual bonus or any part of any annual bonus;?week? means a continuous period of seven days;?year of age? means a year from the date of a person’s birth.(2) The Minister may by order amend the First Schedule.(3) The Minister may by order declare such provisions of thisAct and any other written law as may be specified in the order to beapplicable to any person or class of persons employed, engaged orcontracted with to carry out work in any occupation in anyagricultural or industrial undertaking, constructional work, statutorybody, local government authority, trade, business or place of work,and upon the coming into force of any such order—18 Laws of Malaysia ACT 265(a) any person or class of persons specified in the order shall bedeemed to be an employee or employees;(b) the person, statutory body or local government authorityemploying, engaging or contracting with every such personor class of persons shall be deemed to be an employer;(c) the employer and the employee shall be deemed to haveentered into a contract of service with one another;(d) the place where such employee carries on work for hisemployer shall be deemed to be a place of employment; and(e) the remuneration of such employee shall be deemed to bewages,for the purposes of such specified provisions of this Act and anyother written law.(4) The Minister may make regulations in respect of the termsand conditions upon which the person or class of persons specifiedpursuant to subsection (3) may be employed.(4A) Notwithstanding the provisions of this Act, the Ministermay make regulations—(a) in respect of the terms and conditions of service of apart-time employee; and(b) prescribing the manner in which the hours of work of anemployee are to be computed for the purposes ofdetermining whether that employee falls within thedefinition of a ?part-time employee?.(5) The Minister may, from time to time, by notificationpublished in the Gazette, declare any particular industry,establishment or undertaking, or any class, category or description ofindustries, establishments or undertakings or any particular activity,service or work, or any class, category or description of activities,Employment 19services or works, to be an industrial undertaking for the purposes ofthis Act.Minister may prohibit employment other than under contract ofservice2A. (1) The Minister may by order prohibit the employment,engagement or contracting of any person or class of persons to carryout work in any occupation in any agricultural or industrialundertaking, constructional work, statutory body, local governmentauthority, trade, business or place of work other than under a contractof service entered into with—(a) the principal or owner of that agricultural or industrialundertaking, constructional work, trade, business or place ofwork; or(b) that statutory body or that authority.(2) Upon the coming into force of any such order, the person orclass of persons employed, engaged or contracted with to carry outthe work shall be deemed to be an employee or employees and—(a) the principal or owner of the agricultural or industrialundertaking, constructional work, trade, business or place ofwork; or(b) the statutory body or local government authority,shall be deemed to be the employer for the purposes of suchprovisions of this Act and any other written law as may be specifiedin the order.(3) Notwithstanding subsection (1), the Minister may by orderapprove the employment of any person or class of persons by suchother person or class of persons (not being the principal or owner) ashe may specify but subject to such conditions as he may deem fit toimpose.20 Laws of Malaysia ACT 265(4) Any person who contravenes any order made under thissection commits an offence.General power to exempt or exclude2B. The Minister may by order exempt or exclude, subject to suchconditions as he may deem fit to impose, any person or class ofpersons from all or any of the provisions of this Act.Appointment of officers3. (1) The Yang di-Pertuan Agong may appoint an officer to bestyled the Director General of Labour, in this Act referred to as ?theDirector General?.(2) The Yang di-Pertuan Agong may appoint, to such numberas he considers necessary for carrying out the provisions of this Act,officers of the following categories, that is to say—(a) Deputy Directors General of Labour;(b) Directors of Labour, Deputy Directors of Labour, SeniorAssistant Directors of Labour and Assistant Directors ofLabour; and(c) Labour Officers.(3) Subject to such limitations, if any, as may be prescribed byregulations made under this Act, any officer appointed undersubsection (2) shall perform all the duties imposed and may exerciseall the powers conferred upon the Director General by this Act, andevery duty so performed and power so exercised shall be deemed tohave been duly performed and exercised for the purposes of this Act.Employment 21Appeals4. Any person affected by any decision or order, other than an orderor decision under section 69, 69B, 69C, 73 or subsection 81D(4), givenor made by an officer appointed under subsection 3(2), may, if he isdissatisfied with such decision or order, within fourteen days of suchdecision or order being communicated to him appeal in writingtherefrom to the Director General.Effect on Act of other written laws5. Nothing in this Act shall be construed as relieving any person whohas entered into a contract of service, either as the employer or as theperson employed, of any duty or liability imposed upon him by theprovisions of any other written law for the time being in force inMalaysia or any part thereof or to limit any power which may beexercised by any public officer or any right conferred upon any suchperson as aforesaid under or by virtue of any such written law.PART IICONTRACTS OF SERVICESaving of existing contracts6. Every agreement lawfully entered into between an employer andan employee before the coming into force of this Act shall if it is stilllegally binding upon the parties continue in force for such period asmay be specified in the agreement and the parties thereto shall besubject to, and shall be entitled to the benefits of, this Act.More favourable conditions of service under the Act to prevail7. Subject to section 7A, any term or condition of a contract ofservice or of an agreement, whether such contract or agreement wasentered into before or after the coming into force of this Act, whichprovides a term or condition of service which is less favourable to an22 Laws of Malaysia ACT 265employee than a term or condition of service prescribed by this Actor any regulations, order or other subsidiary legislation whatsoevermade thereunder shall be void and of no effect to that extent and themore favourable provisions of this Act or any regulations, order orother subsidiary legislation whatsoever made thereunder shall besubstituted therefore.Validity of any term or condition of service which is morefavourable7A. Subject to any express prohibition under this Act or anyregulations, order or other subsidiary legislation whatsoever madethereunder, nothing in section 7 shall be construed as preventing anemployer and an employee from agreeing to any term or condition ofservice under which an employee is employed, or shall render invalidany term or condition of service stipulated in any collectiveagreement or in any award of the Industrial Court, which is morefavourable to the employee than the provisions of this Act or anyregulations, order, or other subsidiary legislation whatsoever madethereunder.Removal of doubt in respect of matters not provided for by orunder this Act7B. For the removal of doubt it is hereby declared that if no provisionis made in respect of any matter under this Act or any subsidiarylegislation made thereunder, or if no regulations, order or othersubsidiary legislation has been made on any matter in respect ofwhich regulations, or an order or other subsidiary legislation may bemade under this Act, it shall not be construed as preventing suchmatter from being provided for in a contract of service, or from beingnegotiated upon between an employer and an employee.Employment 23Contracts of service not to restrict rights of employees to join,participate in or organize trade unions8. Nothing in any contract of service shall in any manner restrict theright of any employee who is a party to such contract—(a) to join a registered trade union;(b) to participate in the activities of a registered trade union,whether as an officer of such union or otherwise; or(c) to associate with any other persons for the purpose oforganizing a trade union in accordance with the TradeUnions Act 1959 [Act 262].9. (Deleted by *Act 40 of 1966).Contracts to be in writing and to include provision fortermination10. (1) A contract of service for a specified period of time exceedingone month or for the performance of a specified piece of work, wherethe time reasonably required for the completion of the work exceedsor may exceed one month, shall be in writing.(2) In every written contract of service a clause shall beincluded setting out the manner in which such contract may beterminated by either party in accordance with this Part.Provision as to termination of contracts11. (1) A contract of service for a specified period of time or for theperformance of a specified piece of work shall, unless otherwiseterminated in accordance with this Part, terminate when the period oftime for which such contract was made has expired or when the pieceof work specified in such contract has been completed.*NOTE—The Children and Young Persons (Employment) Act 1966 [Act 40 of 1966] has since beenrevised as the Children and Young Persons (Employment) Act 1966 [Act 350].24 Laws of Malaysia ACT 265(2) A contract of service for an unspecified period of time shallcontinue in force until terminated in accordance with this Part.Notice of termination of contract12. (1) Either party to a contract of service may at any time give tothe other party notice of his intention to terminate such contract ofservice.(2) The length of such notice shall be the same for bothemployer and employee and shall be determined by a provision madein writing for such notice in the terms of the contract of service, or, inthe absence of such provision in writing, shall not be less than—(a) four weeks’ notice if the employee has been so employedfor less than two years on the date on which the notice isgiven;(b) six weeks’ notice if he has been so employed for two yearsor more but less than five years on such date;(c) eight weeks’ notice if he has been so employed for fiveyears or more on such date:Provided that this section shall not be taken to prevent eitherparty from waiving his right to a notice under this subsection.(3) Notwithstanding anything contained in subsection (2),where the termination of service of the employee is attributablewholly or mainly to the fact that—(a) the employer has ceased, or intends to cease to carry on thebusiness for the purposes of which the employee wasemployed;(b) the employer has ceased or intends to cease to carry on thebusiness in the place at which the employee was contractedto work;Employment 25(c) the requirements of that business for the employee to carryout work of a particular kind have ceased or diminished orare expected to cease or diminish;(d) the requirements of that business for the employee to carryout work of a particular kind in the place at which he wascontracted to work have ceased or diminished or areexpected to cease or diminish;(e) the employee has refused to accept his transfer to any otherplace of employment, unless his contract of service requireshim to accept such transfer; or(f) a change has occurred in the ownership of the business forthe purpose of which an employee is employed or of a partof such business, regardless of whether the change occursby virtue of a sale or other disposition or by operation oflaw,the employee shall be entitled to, and the employer shall give to theemployee, notice of termination of service, and the length of suchnotice shall be not less than that provided under paragraph (2)(a), (b)or (c), as the case may be, regardless of anything to the contrarycontained in the contract of service.(4) Such notice shall be written and may be given at any time,and the day on which the notice is given shall be included in theperiod of the notice.Termination of contract without notice13. (1) Either party to a contract of service may terminate suchcontract of service without notice or, if notice has already been givenin accordance with section 12, without waiting for the expiry of thatnotice, by paying to the other party an indemnity of a sum equal tothe amount of wages which would have accrued to the employeeduring the term of such notice or during the unexpired term of suchnotice.26 Laws of Malaysia ACT 265(2) Either party to a contract of service may terminate suchcontract of service without notice in the event of any wilful breach bythe other party of a condition of the contract of service.Termination of contract for special reasons14. (1) An employer may, on the grounds of misconduct inconsistentwith the fulfilment of the express or implied conditions of his service,after due inquiry—(a) dismiss without notice the employee;(b) downgrade the employee; or(c) impose any other lesser punishment as he deems just and fit,and where a punishment of suspension without wages isimposed, it shall not exceed a period of two weeks.(2) For the purposes of an inquiry under subsection (1), theemployer may suspend the employee from work for a period notexceeding two weeks but shall pay him not less than half his wagesfor such period:Provided that if the inquiry does not disclose any misconduct onthe part of the employee the employer shall forthwith restore to theemployee the full amount of wages so withheld.(3) An employee may terminate his contract of service with hisemployer without notice where he or his dependants are immediatelythreatened by danger to the person by violence or disease such assuch employee did not by his contract of service undertake to run.When contract is deemed to be broken by employer andemployee15. (1) An employer shall be deemed to have broken his contract ofservice with the employee if he fails to pay wages in accordance withPart III.Employment 27(2) An employee shall be deemed to have broken his contract ofservice with the employer if he has been continuously absent fromwork for more than two consecutive working days without prior leavefrom his employer, unless he has a reasonable excuse for suchabsence and has informed or attempted to inform his employer ofsuch excuse prior to or at the earliest opportunity during suchabsence.Employees on estates to be provided with minimum number ofdays’ work in each month16. (1) Where an employee is employed in any agriculturalundertaking on an estate on a contract of service under which heearns wages calculated by reference to the number of days’ workperformed in each month of his service, his employer shall be boundeither to provide him with work suitable to his capacity on not lessthan twenty-four days in each month during the whole of which he isso employed, or if the employer is unable or fails to provide work ontwenty-four days in each mo

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