Employment Law Lecture Notes

Contract of Service Contract for Service

Employee Independent Contractor
whether verbal or in writing, where a person Self-employed / free-lance
binds him/herself to render service to, or to do
work for, an employer in return of wages
Have lots of control upon the employee Autonomy
Specific contract with specified term Generic contract
Employer has higher bargaining power / Equal bargaining power – T&C upon the
unequal bargaining power  may lead to negotiation – implied terms will get involved
exploitation on social scale (moral issue – social i.e. wedding photographer
justice – hence need LAW as intervention) where to shoot + payment – general in contract/
*many people need jobs hence if there’s no bare expressly said
minimum set by law – it could affect the public implied: the quality of the photos taken
interest.
Negotiation still can be done that’s why law
should interfere to ensure the employers comply
with the minimum limit of i.e. wages
Three categories
1. Employee
2. Independent contractor
3. Workers: Uber v Aslam
Contract of Service

Tutorial 1 – why is it necessary to distinguish between COS and CFS

Structure

i. Definition of COS, CFS

ii. Differences between these two concepts
iii. Answer the question – the rationale to distinguish it

Rationale of the distinction

1. The concept of vicarious liability  If something happens to the employee, the employer will take the liability but if you’re self-employed you have to
bear it alone
Employment Law Lecture Notes

2. To ensure that the employers comply with the rights and duties stipulated by the legislations (oblige their statutory requirements) to the employer 
EPF, SOSCO, insurance

 Contract of service is necessary to show that one is an employee.

 The right and duties in employer-employee relationship depends on the contract of both parties have
 Contract of service can come into exist in two ways
1. Express 2. Implied
 Issue: kontrak bertulis/ lisan menyatakan sebaliknya – i.e. kontrak perkhidmatan
 Mungkin dibuat oleh majikan atau dan pekerja utk mengelak tanggungjawab kontrak dan perundangan – seperti kwsp, socso, cukai pendapatan,
vicarious liability, juga aktiviti jenayah, mengelak tindakan undang-undang oleh seseorang yg mendakwa dirinya pekerja
 Eg: consultant, free-lancer, piece rate

TESTS TO PROVE THE EXISTENCE OF CONTRACT OF SERVICE/EMPLOYMENT

1. Control Test 1 Traditional test – master v servant. It has feudal element in it. Loyalty: top-down relationship. 
degree of control – COS

It determines how much the control is being exercised over the worker by the employer. The more
control that is being exercised; it is more likely that the worker is an employee regardless of what
the contract says.

Bata Shoe Co Facts: The plaintiff company sought a declaration that salesmen employed by their shop managers
Ltd v EPF were not their employees for the purposes of the Employees Provident Fund Ordinance.

Held: The manager was an employee of the company but the salesmen were not. the company as
such does not select such salesmen for appointment. Their wages are not paid by the company.
The company has no direct control over the manner in which the work is to be performed by the

1
However, the control test is said to be unsuitable for today’s era due to increase improvement of technology and education. The traditional control test only uses control
but the court decided that control is only one of the factors. Still certain circumstances in involving professional workers, the control tests need to be further modified.
Employment Law Lecture Notes

salesmen. They can only dismiss them via the store managers. Hence, the salesmen weren’t the
employees, the fund weren’t need.

Performing An agreement between a band and the dance hall company that determined that the company has
Right Society v the right to control over the type of music that is to be performed by the band and how they will
Michell behave on their performance. Here, the members of the band are said to be employees as the
dance hall company had control over the members of the band.
Contract of service  as the dance hall company controlled a lot of specific things – music, when
and how to play.
 Electrician and artist – contract of service. Limited services.

Short v establishes that there must be four elements to fulfilled to establish the control test which are;
Henderson i. Selection
ii. Payment of wages
Control test is iii. Control the method of doing work
easy to use in iv. Power of dismissal
manual labour

Cf Cassidy v Held: The liability of hospital authorities for the negligence of a doctor on the permanent staff of the
Minister of hospital does not depend on whether he is employed under a contract of service or under a contract
Health for services. It depends on who employs him. If the patient himself selects and employs the doctor,
the hospital authorities are not liable for his negligence, but where the doctor, be he a consultant or
not, is employed and paid, not by the patient, but by the hospital authorities, the hospital authorities
are liable for his negligence in treating the patient.

EPF v M S Allay Facts: The respondent company was a private company dealing in provisions, medical supplies and
[1975] general merchandise. The business of the respondent company was conducted and managed by a
group of persons known as working assistants who were rewarded by a share of the profits.
Held: Working assistant are employees. Company appointed Wahab as promotion. (selection
fulfilled). There is remuneration through shares of profit (payment fulfilled). Working assistant
requires permission to withdraw money (control fulfilled) and If working assistance misappropriated
company funds then director can dismiss him (dismissal fulfilled).

The application of control test

 It’s hard to use this test in professional field [professional employee usually has less degree of control – this is
when some issues raised as how to determine the control.
 Professional workers usually have lots of flexibility. Issue that comes in: vicarious liability – flexibility  control

Employment Law Lecture Notes

 Even though some contracts have been drafted by the lawyers and stated that it is a contract of service, the
court won’t accept it blindly. Court need to consider the element of social justice
 Social justice = employer tend to exploit the employee. They tend to avoid from the employer-employee
relationship.

2. Multiple The Multiple Test (or the Mixed Test) refers to the entire situation. In other words, all the related and
Test relevant factors are considered. The approach in multiple test is to counter the problem that we have
in Control Test.
 Lack of direct control doesn’t necessarily mean no contract of service (COS)
 The terms contained in the contract can raise the implication and stipulation that COS exists
 Hence, it is the duty of the court to examine the real intention set by the parties by looking at
the terms

Ready Mixed Contract to deliver cement to location directed/ determined by Ready Mixed. Driver owned and
Concrete v maintained lorry/truck. Driver may get substitute driver. Truck must display RM logo. Driver must wear
Minister of RM uniform
Pensions
Held: No contract of service between the driver and RM
 It’s up to the driver to choose his substitute
 It’s the driver who pays the substitute driver
 It’s up to the driver to choose the trip
 The driver has to service the vehicle by their own
**Payment and control indicate contract of service (employment) but other terms and conditions
indicate NO COS.
Employment Law Lecture Notes

Principle: A contract of service exists when three conditions are fulfilled

i. Payment of wages
ii. Reasonable extent of control
iii. Whether they are any terms inconsistent with the COS

Labelling Label yg ditentukan oleh kontrak tidak semestinya diterima mahkamah

Factor Contoh: label seperti free-lance, consultant – mungkin bertujuan utk mengelak hubungan tersebut
menjadi KOP/COS + elak tanggungjawab undang2: caruman wajib, cukai, vicarious liability,
pampasan.
*Court would consider the element of Social Justice  court will look at the exact intention behind the
labelling. The label must reflect the reality of the relationship.

Principle: label is the best evidence to prove the intention but it must be consistent with the nature of
the relationship. Meaning to say, if the labelling isn’t right, the court has the duty to determine the real
nature of the relationship

Ferguson v John Dawson & Partners [1976] 3 All ER 817

Facts: The defendants, who were building contractors, orally engaged the plaintiff through their site
agent to work as a general labourer. The plaintiff was told that there were no cards, they were 'purely
working as a lump labour force'. He was paid at an hourly rate.

Held: Per Megaw and Browne LJJ. A declaration by the parties, even if it is incorporated in the
contract, that a workman is, or is deemed to be, self-employed or an independent contractor ought to
be wholly disregarded, not merely treated as being inconclusive, if the remainder of the contractual
terms governing the realities of the relationship show the relationship of employer and employee.

Massey v Crown Life Insurance

Mutual
Obligation
Economic
Reality

3/3/2020 Week 3

Terms and Conditions of Employment Contract

Employment Law Lecture Notes

Contract of Service – adakah pekerja-majikan bebas menentukan terma dan syarat kontrak di antara mereka?

Asas kontrak

1. Pekerja – memberi tenaga kerja (labour)

2. Majikan – memberi upah (wages) kepada tenaga kerja/salary

Alasan untuk legal intervention: memastikan social stability, social justice and public interest – to reduce the poverty, health and safety working
environment. Fair wages & job security.

Issue:

i) Hubungan pekerjaan yg tidak seimbang

ii) Kuasa ekonomi ditangan majikan
iii) Pekerja amat memerlukan nafkah hidup – prone to exploitation

Freedom of contract – free market economy

 4D: Dirty, dangerous, D, D – ramai orang boleh buat kerja tu hence the salary will be low
 Neurosurgeon – tak ramai, hence gaji tinggi

Case: Uber v Aslam – decent work. Things that the court will take into consideration. Quite close with safety and health.

 Terma dan syarat pekerjaan menentukan hak dan tanggungjawab kedua2 majikan dan pekerja
 Kegagalan melaksanakan hak dan tanggungjawab akan membawa implikasi undang2
 Majikan boleh dikenakan tindakan undang2 by regulatory bodies

Takrif TERMA dan Terms: perkara yang perlu dipersetujui di antara majikan dan pekerja.
kesan pemecahan Contoh: gaji bulanan (monthly salary)
terma Failure to comply with the term can lead to the termination of contract.
 Terms cannot be changed by one party/unilateral
 Kegagalan mematuhi  penamatan kontrak

Takrif SYARAT + Perkara tambahan yg boleh diminta oleh majikan drpd pekerja scr unilateral
(Conditions) + Pekerja tidak perlu/mesti mengikut syarat
+ Effect of breach: Perlanggaran syarat won’t lead to termination but usually it’ll lead to disciplinary action.
Eg: tak pakai uniform yg ditetapkan – tak ikut – potong gaji
+ Role of Trade Union: to protect the welfare of the employees through the collective agreements
 Employment Law Lecture Notes

!!!!!! MULTIPLE 1. Offer letter (not detail) – basic skeletal

OF i) Amount of Salary
DOCUMENTS!!!!!! ii) Nature of Work
! iii) Working Hours
iv) Termination Clause – notice, etc.
Source to 2. Seculars (Pekeliling), Memo, Manual, Guidelines – describes the work.  lead to a problem when
determine terms we need to determine TS
and conditions 3. Collective agreement, management memo

Sources of Terms

1. Express Express – offer letter

 Robertson v British Gas: it’s a good practice to refer to specific document which contains terms of contract
i.e dapat offer letter untuk kerja kat telaga minyak. Refer dalam surat tawaran kena refer this, and that. It will be regarded
as terms rather than condition

 Bank Bumiputera v Mohamed bin Salleh

Offer letter referred to employment manual – pekerja akan dilindungi insurance (terms of the contract). Penyataan ni tak
cakap in offer letter but in employment manual. P was injured, insurer paid to BBNM (CIMB). BBNM refuse – argument:
it’s not in the term.
Court: TERMA. Manual pekerjaan secara nyata telah dirujuk dalam surat tawaran.

 Zainab Awang v Radio Wanita

Issue: age of retirement didn’t stipulate in the COS – 55 or 60
It is presumed that – based on EPF – retirement age is 55
**civil servant subjected to constitution – pension, discipline
Pekerja swasta: kena state

 All these terms need to be written down.

 Employment Law Lecture Notes

2. Implied – 3 categories
i. Implied term 1. TERMA UTK MEMBAYAR UPAH/ IT TO PROVIDE WORKS – bukan merely bayar je tapi kena bayar on time
for employer  Turner v Sawdon – hanya bayar gaji bukan menyediakan kerja. Even if there’s no job to be done, the employer is under
(bukan under duty to pay wages to the employee.
employment Mh: keberatan utk meletakkan tugas kpd majikan utk menyediakan kerja. Majikan ada tugas utk memberi kerja.
act – apply to Kecuali
all)
A. kerja yg bagi upah based on kerja yg dilakukan (bayar secara commission – tak tetap). Kalau majikan tak bagi kerja
takdak commission.
*no work = no income  is it dismissal
Advice to employer – put basic wages + extra (commission). Employer can protect themselves by providing minimum
wages to the employee.
Sama gak cam artis.
Work and wages should’ve come together. Tapi kalau tak boleh – employer should provide minimum wages.
B. Pekerja yg terlibat dengan seni persembahan/performing arts – ada yg makan gaji sbb takde job. i.e. bola sepak. MU
– quite top player, duduk kat substitute bench to the extent orang dah lama tak nampak dia main.
C. Bayar secara upah hasil /piece rate
D. Pekerja mahir?

 Langston v AEU – majikan ada tugas to provide work. Ini this case, walaupun seseorang tu specialist, adalah penting
utk diberi kerja bukan sekadar updah kerana kerja berkemahiran – adalah satu pride
kalau specialist ni tak dibagi job it will lead to constructive dismissal – menghalang daripada naik pangkat. Exercise of his
skill is a matter of pride
 Bosworth v Angus Jowett – Turner’s case didn’t show the reasonable principle – it should be fact to fact basis.
Refinement of Turner’s case.
Factors
i. Nama baik/reputasi
ii. Memang sebenarnya ada kerja utk diberikan
iii. Insentif kewangan – diberikan kepada orang yg capai certain KPI ke gitu. Employers should’ve given the equal
opportunity to the employee
 This is a big issue – highly paid/skill manual job.
Dalam keadaan ini, obligation to pay wages depends on the work.

2. TERMS NOT TO ORDER THE EMPLOYEE TO DO ANYTHING ILLEGAL /UNLAWFUL – TRANSPORT WORKERS
ARE EXPOSED TO THE CRIMINAL LIABILITY
 Illegal – unlawful
 Employment Law Lecture Notes

 Salah di sisi undang-undang

 Bertentangan dengan polisi awam --- unethical

 Gregory v Food
 Thomlinson v Dick Evans
 Nyeow Voon Yean

 Pekerja memasuki kontrak utk melakukan perkara yg sah di sisi undang-undang

 TETAPI, pelaksanaanya adalah secara tidak sah
i.e. kontrak tu tak boleh
 state of mind should be considered

TERMA digunakan oleh employee utk dakwa majikan – tapi kalau dah void ab initio --- takdelah COS
Bila COS tidak menjadi sah kerana apa yg diarahkan tu haram – COS tidak boleh dikuatkuasakan oleh pekerja sama ada utk
mendapatkan haknya di bawah contract

ii. Implied term 1. KERJA DENGAN JUJUR DAN SUCI HATI – good faith and fidelity (curang)
for employee  Good faith: honest or sincerity of intention
A way of behaving that is honest
 Fidelity: faithfulness to a person, cause or belief, demonstrated by continuing loyalty and support; honest or lasting
support
 You shouldn’t do something that against the employer**

Trade and business secret – duty to protect master’s secret (the business). What are the things that can be categorized as
business secret?
i.e. kilang – makan kat kilang tak sedap: x a business secret
critical business information – leak – affect the profit – loss income
DUTY TO PROTECT TRADE SECRET – rationale:
i. Memberi perlindungan maklumat mereka
Akta Rahsia Rasmi
ii. Timbal-balik peningkatan professionalism pekerja (lagi tinggi pangkat lagi banyak information can be accessed). Manual
labour – takde access. Members of BOD – lots of access  access to information need a higher grade.
iii. Pekerja tidak sepatutnya dapat personal gain daripada jawatannya [one form of corruption, conflict of interest]

Concept
It should be something significant
 Bila pekerja menjadi sebahagian daripada operasi – kecurangan memberi kesan negative kpd perniagaan/ operasi
majikan
 Law firm: partners teruk ke apa – might affect the business
Employment Law Lecture Notes

 Menjaga rahsia/ maklumat penting organisasi/perniagaan adalah penting utk kekuatan ekonomi organisasi
 Rob v Green – during employment copied list of customers name from employers’ order book. Left employment
(termination) – work with another, similar business – he used the customer name list
Held: it was an implied term of the contract of service that the Df wouldn’t use to the detriment of the plaintiff, information
to which he had access in the course of the service. Therefore, the def was liable in damages for any loss caused to
the plaintiff by reason of the breach. Injunction pun boleh gak.
 Duty of confidentiality – entitled to damages and injunction.
 in every contract of service there is an implied stipulation that the servant will observe good faith towards his employer in
respect of the matters codified to him

 Schmidt Scientific Sdn Bhd v Ong Han Suan [1997] 5 MLJ 632 – pekerja berhenti kerja pastu bukak business exactly
macam employer – competition.
 Kalau dia masih bekerja tapi langar terms  ada possibility utk dibuang kerja tapi employer kena take into consideration
gak kalau dia berhenti guna information utk business sendiri. Kalau tak serious, employer akan bagi tindakan / mintak
ganti rugi drpd syarikat yg dah dapat leaked information. Tindakan employee memberi kerugian kepada employer.
Dilakukan semasa tempoh bekerja
 Guna maklumat pelanggan bagi tujuan saingan kepada majikannya
 Semasa berkerja, pekerja tu ada buat kerja lain (moonlighting).
i.e. guru + tuition luar.
-- kewajiban terma tidak menghalang dia utk kerja part time (terhad kepada/ not applicable to gov servants except with
the approval of their employers)
 As long as it does not involves in any job which give detriment effect to his employer
i.e. chef sebuah restaurant tanpa persetujuan majikan
 kena lihat detail pekerja especially bila kerja tu melibatkan pengetahuan dan kepakaran utk pendapatan sendiri atau
bertentangan dengan kepentingan perniagaan majikan (this issue usually associated with high-skill employees)

 Hivac Ltd v Park Royal

 Buat alat bantuan. Weekend pekerja Hivac kerja kat Park Royal utk extra income and kerja diorang manual (pasang2) je.
Pekerja ni tak share any information regarding Hivac to Park Royal.
 C: Injunction – menghalang Park Royal to hire its employees  potentially inflict great harm on the company as its hard
to differentiate btwn the manual and the skill in handling manual stuffs
 Look at the risk of disclosure
 Pekerja yg ada high skill
 Pekerja takde kemahiran khusus = still ada potential utk guna skill tu kat tempat kerja majikan sebenar

 Nova Plastics
 Nature of the work of the employee did wasn’t something that could contribute very seriously to any competition  takde
persaingan yg serious tak breach the term of good faith and fidelity. Even refers to kesetiaan, tapi kena consider hak dia
utk tambah pendapatan by other employer.
Employment Law Lecture Notes

 Solution: gunakan contract yg jelas

 Eventho dah ada express terms in the contract of employment but it could be contrary as it contravene with employees
right

Majikan menghalang simpan rambut yg Panjang – rambut tak sesuai as it serves as frontdesk. Majikan takleh halang pekerja
based on appearance

 Dynacast
 Helmet
 Sheppard

#Pekerja membuat persediaan bagi masa hadapan – boleh je as long as tak effect performance

2. TERMA UTK MEMBUAT PENZAHIRAN

- Misuse of confidential info – zahirkan maklumat sulit kpd orang lain
i. Nature of the employment work
A. Kedudukan/ jawatan – refers to confidential information
1. Access to the organization
Pekerja jawatan tinggi are prone to be exposed to such information. i.e. General Manager – got more
access compared to other works.

2. Jenis maklumat
a. Trade secret: WIPO – any confidential business information which encompass industrial secret,
unauthorized use from such information – unfair practice [unfair competition]
 IT Company
b. Confidential information – information x accessible to public.

Faccenda Chicken v Fowler [1986] IRLR 69 – bekas pekerja yg dapat maklumat time kerja dan berhenti boleh guna maklumat
tu. Fowler bangunkan system jualan ayam. Dlm contract takde exoress term and Facecenda ask injunction.
COA – sales information not trade secret
Other factors to be taken into consideration
- Nature of employment
- Nature of information
- Maklumat tub oleh diasingkan tak?
Prasangka kerahsiaan – Robb v Green: time ni kerja, terikat utk lindungi maklumat rahsia.
Facenda Chicken: sukar membuktikan penzahiran yang bertentangan dengan kepentingan majikan sekiranya tiada bukti yg nyata
 Employment Law Lecture Notes

seperti Salinan document

 Tengok slides page 55 – Printers & Finishers v Holloway
i.e. KFC – kalau pekerja ada special access to the secret recipe of fried chicken – maklumat tu boleh diasingkan. Cf with orang yg
kerja dia duk goreng selama 5 tahun – taktahu cara bagaimana dia dapat maklumat tu. How did he obtain the information.
Mungkin dia obtain recipe dari orang lain, mungkin juga dia dapat daripada observation dia je. Hak majikan & pekerja supaya
takdelah terikat sangat.

Restraint of trade
 worldwide rota
 hak pekerja: buat report tentang keselamatan di tempat kerja. Protection depends on the Act available.
Stanford college’s case – lecturer. Deprives the IP of the uni.
PA – knows personal information about you. “non-disclosure agreement” NDA.
 Lain2 maklumat boleh guna lepas behenti kerja
 Kecuali disekat oleh kontrak pekerjaan (express terms)

ii. TERMA UTK MENJALANKAN PEKERJAAN DENGAN BERHATI-HATI [reasonable care] -

- Menjaga harta majikan supaya tidak membawa kerugian kepada syarikat/majikan
- Surcharge: depends on the seriousness of the misconduct
- Without proper reason, you cannot simply cut your employees salaries.
- Mainly this terms is utk elak kerugian
- Duty to be careful throughout the contract of service

 Lister
 Harvey – A takde tugas berhati2 sbb tugas dia utk jaga store bukan to drive carefully. Mangsa – rakan sekerja.
 Baca AR Dennis
 Baca MPPP

[Link] terms Mutual trust and confidence [suka sama suka gittuw]
Opposite – syakwa sangka

1. Eyr shouldn’t conduct itself in a way that undermine MTC

2. Eyr shouldn’t do anything on the E’yee without reasonable cause – that would damage MTC
Eg:
 E’yr give a bad reference of the E’ye [one employee nak gi cari kerja baru, need recommendation from the employer tapi
employer bagi bad reference so org tu tak dapat kerja ah.
 Employment Law Lecture Notes

 Overburdening E’ye

The conduct of the E’yer has to be serious enough for the E’ye to presumed that it is tantamount to a termination of employment
 breach of MTC

Constructive Dismissal – there’s nothing to do with construction work lol

- dia taknak buang kau kerja tapi diorang put lots of pressure to you, so that you’ll surrender and leave the job. No need to pay
compensation (jimat duit)

ASLEF – ordering employee to take mental health test

3. Ditentukan Akta Kerja – memerlukan written laws.

oleh Akta i.e. EPF (KWSP), PERKESO (SOCSO)
(Statute)
Akta Perhubungan Perusahaan 1957 – collective agreements between the employees and employers, vs trade union. Pekerja
jadi ahli baru boleh dapat benefit.
4. Adat dan Adat dan amalan must be reasonable.
amalan Ada terms yg tak ditulis tapi wujud dalam adat industry or perniagaan tersebut
(industrial
and trade Syarat
practices) 1. Munasabah
2. Tidak contrary dengan undang2
3. Pasti. Certain
4. Mapan. Long practice/established

Issue: Guna social media (whatsapp/telegram) oleh employees

Pemberhentian kerja melalui whatsapp. Pekerja tak reply – bluetick, greytick
Kena berhenti sebab pekerja dah bluetick tapi tak respond. Always happened bila pekerja tu luar Kawasan (vacation).
Kalau ia satu amalan: kena jawab juga whatsapp tak kira bila, kat mana
Ada negara yang dah clear cut cakap: halang employer to contact the employee after working hours.
 Sagar v Ridehalgh
Involves in carpet industry. Pembeli hasil tenunan akan bagi bayaran according to the quality of tenunan. Amalan industry
= quality carpet rendah, gaji rendah. No fixed payment. Payment based on quality.
Court:
Tapi zaman sekarang boleh jadi bila quality kerja boleh jadi indicator utk payment. Mungkin effect dia berbeza utk kerja
manual

 Hardwick v Leeds – contoh tidak sihat

 Employment Law Lecture Notes

Court: amalan tidak munasabah.

Amalan: cuti sakit habis, jika sakit lama pastu takde cuti dah (annual leave pun habis), maka dia perlu berhenti kerja.
*sakit tak habis2 takyah kerja la.
Case ni, cuti sakit 3-4 hari. Habis dah cuti ☹ amalan dalam perniagaan, dia fired the employee. Court: not a reasonable
practice since employees is still capable of resuming work

E. To counter bad labour practice – need to consider the welfare of employees

*kat Malaysia tak jelas minimum days of sick leave

 Waite v Gov Communications

P umur bersara 65>60 kerana amalan yg mengekalkan sehingga 65.
Court: amalan ini tiada certainty as it is not applicable to everyone.
Practice is irregular, hence not certain.

F. **Convert this practice to express terms.

EXPRESS TERMS – PROVIDED BY EMPLOYMENT ACT 1965

 Express terms can be found in

i. Surat tawaran [offer letter]
ii. Penjanjian kolektif [collective agreement]
 Sekiranya ada masalah dalam terma kontrak pekerjaan – the first thing for you to refer is the offer letter & offer letter ni akan dirujuk juga dengan
dokumen2 lain seperti manual kerja
 Manual kerja ni penting dalam menentukan sama terma2 itu selari denagn keperluan dan tuntutan di bawah akta kerja.

A. Non-financial express terms B. Financial express terms

- Dismissal clause - Maternity leave - Maternity allowance
- Holiday - Sick leave - Wages
- Working hours - Annual leave
- Paid leave

Sections Explanation/Elements
7 More favourable conditions of service under the Act will prevail – less Statutory required (minimum) terms
favourable terms made in COS will be void and shall be substituted by the terms Kalau terma/ syarat perkhidmatan dalam kontrak antara pekerja &
provided under Employment Act majikan adalah lebih rendah drpd apa yg ditentukan bawah akta,
 Statutory required (min) terms must be expressly stated in the contract of peruntukan dalam AK akan terpakai
 Employment Law Lecture Notes

service/employment and it must be obliged.

 All the terms must be in writing! (in COS) – it can be in appointment letter,
manual or collective agreement
 Sekiranya terms dalam COS below the statutory requirement, all the
terms mentioned in COS will be void and will be replaced with the
provision under EA: terms yg tertulis dalam perjanjian asal boleh terbatal
sekiranya terms dalam COS tidak memenuhi statutory requirement pastu
terma dalam Akta Kerja akan terpakai

7A Validity of any term or condition of service is more favourable

Nothing in section 7 shall be construed as preventing employer and an employee
from agreeing to any term which is more favourable to the employee than the
provisions of this Act

TERMA YANG LEBIH BAIK? BOLEH!

Employer and Employee can include any term whether it’s provided under the Act
or not so long as it’s signed by both parties AND the terms are more favourable to
the employee more than what has been demanded by the Act.

7B If no provision is made in respect in any matter under this Act, it shall not be
construed as preventing such matter from being provided for in a COS, or from
being negotiated upon between an employer and an employee

Thong Guan Plastik & Paper Industry Sdn Bhd v Lai Chek Woo
Both employer and employee agreed upon the terms which for the employee to
work for 12 hours/day [less favourable term] to the employee and such term
against s.7 of EA. Hence, the employer was ordered to pay overtime for 4 hours
for the employee.
Court: by looking at the contract as a whole and by referring to s.7 and 7A, such
contract actually more favourable in compared to EA provision/the minimum terms
provided by Statutes. Hence, there terms are consistent with EA despite the
workers have to work more than 8 hours
 Case ni timbulkan persoalan – campur tangan mahkamah: adakah
mahkamah buat keputusan yg betul? Sebab kalau kerja more than 8
hours, the employee has right to get overtime
 It’s dangerous to let the factory workers to work more than what they’ve
as it might lead to overburdened – it might give a room for the employer to
exploit
 Employment Law Lecture Notes

7A & 7B Both employee and employer are free to include any terms provided under the Act
or any terms that make it favourable to the employee, in the contract of service so
long it is signed by both of the parties
i.e. uniform allowance

10 Contracts to be in writing and to s.10 + s.7 [read together] Non-financial express terms
include provision for termination
10(1) Must be in written if the work exceeded one month Contract of service
i. Must be in writing AND
ii. Must include termination clause
10(2) The manner of the termination of the contract shall be included in the contract as
well

12 Notice of termination of contract

12(1) Either party to COS may at any time give to the other party notice of his intention
to terminate such contract
12(2) The notice of termination clause must be expressed in writing in the COS Rationale of the notice is for the employee to find another job and to
and if not being expressed, the notice of termination under EA will be applicable avoid fire & hire w/o proper procedure
a) Four weeks’ notice = employed for less than 2 years on the date on which
the notice is given
b) Six weeks’ notice = employed for 2 years/more but less than 5 years
c) Eight weeks’ notice = employed for 5 years/more

Q: employee under probation

 Pekerja yang diletakkan dalam tempoh percubaan adalah kekal dalam
status itu walaupun tempoh percubaan telah tamat = jawatannya
berlanjutan sehingga disahkan jawatan oleh majikan.
 If the employee has already informed the employer, does it necessary to
give notice? If the employer doesn’t remember the date, it will be
considered as extension of work.
 KC Mathew
 V Subramaniam
 Generally, the approval pertaining to any positions will not be
automatically ended

 Peari a/l Perumal v Abd Majid – tindakan kedua-dua pihak boleh

mewujudkan pengesahan berlaku secara tersirat  tak bincang kes ni
 Employment Law Lecture Notes

sebab kes ni pasal pengesahan jawapan, x focusing on the terms.

A. Non-financial express terms

NON-FINANCIAL EXPRESS TERMS

Rest day s. 59(1) – employee shall be allowed in each week a rest day of one who day. At least one
day off/week. – min requirement under EA.
If > 1 rest day, the last of such rest days shall be the rest day. Eg: Sat and Sun. Sun will be
the rest day.

s.59(2) – employer shall prepare a holiday roaster every month in which the rest days fall Sundram v Veemah
informing the employee of days appointed to be his rest days: at the beginning of the month, The rationale of the statute is that if the employee were
the employer should’ve known which dates are rest days. This is specifically for employee asked to work on their rest days, they are entitled to get
who doesn’t have fixed rest days. double payments for working during their rest days. Besides,
**pekerja yg takde hari rehat yang tetap the employee shouldn’t be working on rest day and they need
to have employer’s permission to work on their rest days.
 Employment Law Lecture Notes

Hours of s.60A(1) – an employee shall not be required under his contract of service to work Persatuan Perniagaan Emas Sdn Bhd v Gentar Singh
work a) more than 5 consecutive hours w/o rest of 30 mins C: working as security guard in jewellery shop wasn’t fall
b) > 8 hours in a one day under category of employee that requires constant
c) spread over period of 10 hours in 1 day [tidak diagih-agihkan melebihi 10 jam. Is that supervisory. Therefore, he should only work for
referring to working continuously for 10 hours?] 8 hours/day
d) > 48 hours/week
 Masa minimal utk bekerja pada satu sesi = TAK LEBIH 5 jam. LEPAS 5 JAM
MESTI DIBENARKAN REHAT!!!

Exception Berkaitan dengan pekerjaan yang “seasonal” yang mana

s.60A(1A) – Director General may require the employee to work more than what has been majikan perlu pekerja untuk kerja lebih sikit dari biasa
prescribed above but subject to such conditions (if he’s satisfied with the special
circumstances which necessary/expedient

s.60A(1B) – any person who is dissatisfied with DG’s decision under subsection 1A within
30 days of such decision being communicated, appeal to Minister

Public  s.60D(1) – employee shall be entitled to 11th paid holiday at his ordinary rate of pay Kesatuan Kebangsaan Pekerja-pekejrja Perusahaan
Holiday [5 hari yang majikan takde pilihan mesti memberikan cuti] Petroleum v Castrol
 s.60D(1A) – employer shall exhibit the public holiday
 s.60D (1B) – if the employee happens to get sick leave during the public holiday,
employer shall grant another day as substitution
 S.60D(1) - Employer cannot simply substitute the public holidays with annual leave as it
against s. 60D(1). If they insist to do so, it need the consent from union.
 Employment Law Lecture Notes

Annual 60E (1) Annual leave depends on how long the employee has been working with the employer
leave Employee shall be entitled to paid annual leave of
(cuti Italic – (a) 8 days for every 12 months of continuous service with the same employer if he has been employed for < 2 years
tahunan) proviso (b) 12 days = 2 years or more BUT < 5 years
(c) 16 days = 5 years or more
 Subject to proviso

If the employee hasn’t completed 12 months (not working continuously in a year – he’s entitlement to annual leave should be direct proportion
to the number of completed months of service)

Any fraction of annual leave

 Less ½ of a day shall be disregarded and
 ½ or more – shall be deemed to be one day

Maksudnya – kalau haritu dia kata dia nak amik annual leave but pukul 10AM dia nak masuk kerja dah… tu dikira tak amik annual leave
la. In contrast, kalau kata nak amik leave, tapi malam dia kerja (shift malam) – haa yg tu dia dah dikira dah amik leave.

Employee absent from work w/o employer’s permission & w/o reasonable excuse for more than 10% of working days during 12 months – he’s
not entitled for annual leave.

60E (1A) The paid AL to which employee is entitled under subs (1) shall be in addition to rest days and paid holidays – does it mean rest days; paid
holidays are different from annual leave? I think so, you cannot mix rest days and annual leave.

60E (1B) If an employee who’s on annual leave becomes entitled to sick leave or maternity leave WHILE such on annual leave (lets say while taking
annual leave, you suddenly sick) – the leave will be changed from annual leave to SICK leave and the fact that you took AL before will be
disregarded as the sick leave has been granted.
**am I correct?

60E (2) E’yer shall granr E’yee shall take such leave not later than 12 months after the end of every 12 months continuous (meaning to say, all the
annual leaves granted should be taken before new year bc if not, it will be ceased)
60E (3) Employer shall pay the employee his ordinary rate of pay for every day of paid annual leave – majikan tak boleh potong gaji pekerja
pada hari dia diberi cuti tahunan
60E (3A) If the contract has been terminated before the employee has taken their paid annual leave, they’re entitled to get the pay – lets say an
 Employment Law Lecture Notes

employee (has been working for 1 year), already took 6 days of annual leave before his COS being terminated – hence the employer
need to pay him for 2 days of PAL

 Eventho the employee is entitled for paid annual leave; they still need to get approval/permission to take leave. Penentuan Tarikh cuti – bukan hak
pekerja
 Pan Global Textiles [2002] 2 MLJ 27
 Golden Hoppe Plantations [2003] 2 CLJ 632 – Pekerja yg x bekerja kerana tidak keupayaan sementara based on akta keselamatan: tempoh tak
bekerja tu dikira sbg tempoh bekerja gak. i.e. pekerja dah keje 2 tahun tapi majikan cakap pekerja tu kerja kurang dua tahun kerana contohnya – 3
bulan dia dapat cuti temporary disability. Tempoh 3 bulan tu diambil kira untuk masuk penggiraan cuti tahunan
 Harapan Ramai Sdn Bhd [1997] 3 ILR 410

Sick S. 60F An employee shall, after examination at the expense of the employer –
leave (1) a) By registered certified medical practitioner appointed by employer [clinic panel] OR
b) [emergency] By any other registered medical practitioner if such services of so appointed aren’t obtainable within reasonable time or distance

Employer need to pay for the medical cost even tho it is paid leave – untuk mengelakkan daripada pekerja cuba bekerja dalam keadaan
sakit: melindungi welfare pesakit.

Be entitled to paid sick leave – depends jugak berapa lama dah kerja dengan majikan

(aa) where no hospitalization is necessary

i. Of 14 days for employee than has been employed for < 2 years
ii. Of 18 days for 2 years >, but < 5 year
iii. Of 21 days for 5 years or >

(bb) 60 days if hospitalization is necessary – masuk hospital layak dapat 60 hari. Cuti berbayar ye.
 Employment Law Lecture Notes

s.60F(2) An employee who absents himself on sick leave -

a) not certified by a registered medical practitioner
Or
b) certified by such registered medical practitioner but without informing or attempting to inform his employer of such sick leave within
forty-eight hours

shall be deemed to absent himself from work without the permission of his employer

Balan v National Electricity Board of Employees Union [1975] 1 MLJ 91

Pekerja mendapat 6 bulan cuti sakit
Semasa dalam tempoh cuti sakit - pekerja memohon berhenti - beri notis 3 bulan.
Majikan menerima notis, dan memberhentikan pekerja.
Pekerja menuntut upah yang sepatutnya diberi majikan untuk tempoh 3 bulan tersebut.
Mh: tidak dinyatakan dalam kontrak bahawa tiada upah semasa cuti sakit. Oleh itu pekerja beRhak kepada upah bagi tempoh 3 bulan itu.

Maternity s.37 (1)(a) every female employee shall be entitled for a maternity leave of 60 days
leave
(1)(aa) when a female employee is entitled to maternity leave BUT is not entitled to receive maternity allowance from her employer bc she hasn’t
fulfilled the conditions set out in para 2(a)…
SHE MAY with the consent of the employer, commence work at any time during the eligible period if she has been certified fit to resume work by
registered medical  melindungi pekerja yg tidak mendapat bayaran bersalin untuk dia segera Kembali

B. Financial Express Terms [3rd June]

1. Upah – Wages

4 parts under i. Upah hari kerja biasa

wages ii. Upah kerja lebih masa (OT) pada hari biasa
iii. Upah kerja OT pada hari rehat
iv. Upah kerja OT pada hari kelepasan
 Employment Law Lecture Notes

Definition of  basic wages & all other payments in cash payable to the Issue sama ada kena include ke tidak part as wages –
wages – s.2(1) employee for work done in respect of his contract of service: Chin Swee Hin Sdn Bhd v MdAriff [1977] 2MLJ 31 
terpakai utk mereka yg bergaji tertentu je sebab tu penting. Ada Mahkamah: tidak terdapat terma di dalam kontrak yang dimasuki di antara
juga keadaan di mana dapat pemberian kewangan tapi tak pekerja dan majikan di mana majikan bersetuju untuk membayar nilai bekalan
semestinya part of contract of service. makanan
- oleh itu maka apabila majikan membuat bayaran sebanyak RM50.00
But does not include — Exception (a) – (f). ianya tidak boleh menjadi nilai bekalan makanan.
- Jumlah itu adalah menjadi sebahagian daripada upah pekerja tersebut
a. the value of any house accommodation or the supply of any - Dalam kes ni ada tambahan RM50 ke atas upah asas pekerja & pekerja
food, fuel, light or water or medical attendance, or of any cakap RM50 tu tidak sepatutnya dikira dalam maksud upah kerana RM50
approved amenity or approved service; itu utk makanan tapi court cakap dalam contract takde pun cakap.
VALUE – tempat tinggal yg diberikan kpd pekerja. Majikan tak
boleh nak cakap yg tempat tinggal, nilai sewaan RM300 – tak Issue: kedudukan bagi bayaran lain selain (a) – (f), boleh ke dianggap upah?
boleh include dalam pengiraan upah. Majikan kadang2 saje nak AsiaMotors(KL) Sdn Bhd v Ram Raj [1985] 2 MLJ 202
tambah utk menunjukkan upah tu besar, ada kemudahan seperti Q: Sama ada Special Relief Allowance - SRA dan Additional Special
minyak, makanan. Relief Allowance - ASRA yang dibayar oleh majikan kepada kedua-dua
pekerja dalam kes ini adalah menjadi sebahagian daripada takrif upah bagi
b. any contribution paid by the employer on his own account to tujuan pengiraan upah minimum mereka.
any pension fund, provident fund, superannuation scheme, • Kedua-dua SRA & ASRA tidak terjatuh di bawah perenggan (a)
retrenchment, termination, lay-off or retirement scheme, thrift hingga (f).
scheme or any other fund or scheme established for the benefit • TETAPI: Keputusan Mahkamah = kedua-duanya juga tidak menjadi
or welfare of the employee; sebahagian dari upah.
c. any travelling allowance or the value of any traveling (i.e tidak boleh dikira sebahagain upah untuk tujuan s.2(1) AK1955)
concession; • Alasan: perenggan (a) hingga (f) bukanlah senarai yang tertutup
d. any sum payable to the employee to defray special expenses [not exhausted = list of payments that cannot be considered as
entailed on him by the nature of his employment; payment is not exhaustive] Mahkamah perlu melihat sifat dan tujuan
e. any gratuity payable on discharge or retirement; or bayaran itu dibuat + bayaran tu takde dibayar secara consistent
f. any annual bonus or any part of any annual bonus;

PAYMENT OF WAGES
Wages period – (1) A contract of service shall specify a wage period not exceeding one month – tempoh nak dapat upah tidak boleh melebihi sebulan
s.18(1) (2) If in any contract of service, no wage period is specified the wage period shall for the purposes of the contract be deemed to be one month.
 Employment Law Lecture Notes

Time of (1) Subject to subsection (2), every employer shall pay to each of his employees not later than the seventh day after the last day of any wage
payment of period the wages, less lawful deductions earned by such employee during such wage period  majikan mesti bayar upah pekerja tidak lebih
wages – s.19 dari 7 hari dari tarikh hari upah patut diberikan. Sekiranya Tarikh gaji/upah pada 30/month – upah boleh dibayar sedikit lewat oleh majikan tapi
tak boleh LEBIH 7 hari.

(2) Wages for work done on a rest day, gazetted public holiday referred to in paragraphs 60D(1)(a) and (b) and overtime referred to in section
60A shall be paid not later than the last day of the next wage period  bayaran OT kena bayar before GAJI BULAN DEPAN

(3) Notwithstanding subsections (1) and (2), if the Director General is satisfied that payment within such time is not reasonably practicable, he
may, on the application of the employer, extend the time of payment by such number of days as he thinks fit 
in circumstances in which wages cannot be paid within the agreed time [tempoh lanjutan masa pembayaran]

UPAH TETAP - bayar

<7 hari dari hari s.19(1)
terakhir tempoh upah
time of wages
payment
UPAH OT - dibayar
sebelum hari terakhir s.19(2)
upah selanjutnya

Wages to be (1) The entire amount of wages earned by, or payable to, any employee in respect of any work done by him less any lawful deductions,
paid through shall be actually paid to him through payment into an account at a bank, financial institution…  setelah deduction (i.e. epf) semua.
bank – s.25 Majikan perlu memasukkan wang ke dalam account pekerja & tidak bagi secara cash directly to the employee

(2) Every employee shall be entitled to recover in the courts so much of his wages, exclusive of sums lawfully deducted under Part IV , as
shall not have been actually paid to him in accordance with subsection (1)
Payment of (1) Notwithstanding subsection 25(1), an employer may, upon a written request of the employee, other than a domestic servant, make payment
wages other of his employee’s wages—
than through (a) in legal tender; or
bank – s.25A (b) by cheque made payable to or to the order of the employee.
(2) In the case of a domestic servant, the employer shall, upon the request of his domestic servant, obtain approval from the Director General for the
payment of wages of the domestic servant to be paid in legal tender or by cheque.
 Employment Law Lecture Notes

 Pekerja dengan permintaan bertulis boleh minta majikan utk bayar secara terus – wang/cek
 Jika Pembantu Rumah (domestic), Majikan perlu minta approval diorang + approval director

Pendahuluan  Generally, advances aren’t allowed

(advance) – 22. (1) No employer shall during any one month make to an employee an advance or advances of wages not already earned by such
s.22 employee which exceeds in the aggregate the amount of wages which the employee earned in the preceding month from his employment with such
employer
 bila majikan advance dia boleh deduct such amount (given as advance) from the whole sum of wages
Eg: total wages payment 2500. Advance given 1000. So, during payday, the payment would be 1500. It is lawful for employer to deduct the
1000.
 The advance given shall not exceed the preceding month. Rationale? To prevent the employer from giving “loan” or “bonded labor” to the
employee – sebab ada occasion yang mana majikan bagi gaji 4/5 months advanced to the employee pastu nanti kena bayar macam loan.

 But allowance can be given if it falls under (a) – (f)

 The rest of the list was added from time to time

e. for any other purpose –

(i) in respect of which an application in writing is made by the employer to the Director General;
(ii) which is, in the opinion of the Director General, beneficial to the employee; and
(iii) which is approved in writing by the Director General, provided that in granting such approval, the Director General may make such
modifications thereto or impose such conditions thereon as he may deem proper  to prevent the advance from being misused
 Advance bagi utk pergi haji

f. for such other purpose as the Minister may, from time to time, by notification in the Gazette, specify either generally in respect of all
employees, or only in respect of any particular employee, or any class, category or description of employees.

PEMOTONGA  Majikan boleh juga memotong upah pekerja = s. 24(2)(a) – (d)

N  Pemotongan dibuat atas permohonan pekerja = s.24(3)
(DEDUCTION)  Potongan atas permohonan pekerja berserta kebenaran Ketua Pengarah. s. 24(4)
– S.24
s.24(1) –  Wages deduction is not allowed unless
circumstances a) Overpayment of wages – terlebih bayar upah sebelum ni. Atas pengiraan majikan, dia boleh buat pemotongan utk bulan selanjutnya utk
in which dapat balik duit yg terlebih tu.
 Employment Law Lecture Notes

deduction are b) Deductions for the indemnity – perlu dibuat kepada pekerja kepada majikan + s.13(1)
allowed c) Recovery for advances –
d) Deductions authorized by any written law – pekerja bertanggungjawab bawah undang2 utk dipotong gajijnya??

Deduction – 3) The following deductions shall only be made at the request in writing of the employee—
request of the (a) deductions in respect of the payments to a registered trade union or co-operative thrift and loan society of any sum of money due to the
employee: trade union or society by the employee on account of entrance fees, subscriptions, instalments and interest on loans, or other dues; and
s.24(3) (b) deductions in respect of payments for any shares of the employer’s business offered …

(a) Bayaran  KESATUAN SEKERJA, KOPERASI JIMAT-CERMAT, PERSATUAN PEMINJAMAN (tujuan: yuran penyertaan, [Link],
bunga pinjaman, …) – bayaran yang dibuat melalui pembayaran gaji
(b) Bayaran  Saham dlm perniagaan majikan yag ditawarkan kepadanya. So majikan boleh buat deduction.

Deduction – (4) The following deductions shall not be made except at the request in writing of the employee and with the prior permission in writing of the Director
approval of General:
DG: s.24(4)
a) deductions in respect of payments into any superannuation scheme, provident fund, employer’s welfare scheme or insurance scheme
established for the benefit of the employee; - skim tabungan insuran/hal2 kebajikan pekerja
b) deductions in respect of repayments of advances of wages made to an employee under section 22 where interest is levied on the advances
and deductions in respect of the payments of the interest so levied;
c) deductions in respect of payments to a third party on behalf of the employee;
d) deductions in respect of payments for the purchase by the employee of any goods of the employer’s business offered for sale by the
employer; and
e) deductions in respect of the rental for accommodation and the cost of services, food and meals provided by the employer to the employee
at the employee’s request or under the terms of the employee’s contract of service

Maximum The total of any amounts deducted under this section from the wages Raymond Michael Ignatius v D & C Finance Bhd [1994] 2 MLJ 679
deduction – of an employee in respect of any one month shall not exceed fifty per  
s.24(8) centum of the wages earned by that employee in that month. Dalam kes ini, Mahkamah Agung bersetuju dengan pandangan Mahkamah
Tinggi yang memutuskan bahawa tiada peruntukan di dalam mana-
Limitation shall not apply to mana Akta yang membolehkan majistret mengeluarkan arahan
a) deductions from indemnity memerintahkan seorang majikan memotong upah pekerjanya bagi
b) deduction from final payments of wages due to the remaining menjelaskan hutang penghakiman.
unpaid on the termination of the employees’ COS – gaji last la  Sekiranya ada hutang antara pekerja and majikan, majikan
sebab nak bersara/berhenti: pemotongan yg >50 boleh dibuat (syarikat kewangan). Pekerja gagal bayar hutang. Magistret bagi
c) deduction for the repayment of a housing loan with the approval kelulusan utk majikan potong gaji.
of DG**  Raymod v Finance – hutang & pemiutang, bukan employee-
 Employment Law Lecture Notes

employer relationship

(Malah, kesan kegagalan majikan mematuhi perintah tersebut akan

menyebabkan dia boleh dikenakan ‘contempt of court’ dan boleh
dipenjarakan.)

Terdapat remedi-remedi lain yang boleh digunakan oleh pemiutang

untuk mendapatkan kembali bayaran tersebut seperti, melalui perintah
garnishmen, saman penghutang penghakiman ataupun writ penyitaan dan
penjualan.

INTEREST ON Eg: advance RM1500. But the employee has to pay back RM150/month + processing fees RM30 = RM180. That RM30 isn’t allowed.
ADVANCES
ARE No employer shall—
FORBIDDEN – (a) make any deduction; or
S.27 (b) receive any payment,
from any employee by way of discount, interest or any similar charge on account of any advance or advances of wages made to an employee in
anticipation of the regular date for the payment of wages, where such advance or advances do not exceed in the aggregate one month’s wages.

PRIORITY OF Bila majikan ada masalah ekonomi – bayar gaji dulu baru boleh bayar Keutamaan bayar upah > hutang majikan
WAGES OVER hutang2 yg lain. seksyen 31(1) Akta Kerja 1955
OTHER DEBTS
– s.31 (1) Where by order of a court made upon the application of any kalau majikan bankrupt, diorang kena bayar gaji dulu baru boleh settle kan
person holding a mortgage, charge, lien or decree (hereinafter hutang (i.e. perintah mahkamah yg banyak).
referred to as ―the secured creditor‖) or in the exercise of
rights under a debenture the property of any person Selain daripada memastikan bahawa potongan upah hanya dibuat
(hereinafter referred to as ―the person liable‖) liable under any mengikut peruntukan Akta, sekiranya harta majikan dilelong atau dijual
of the provisions of this Act to pay the wages due to any akibat satu perintah jualan atau lelongan, keutamaan pembayaran upah
employee or to pay money due to any contractor for labour is hendaklah diberikan berbanding dengan hak pemiutang mengikut
sold, or any money due to the person liable is attached or seksyen 31(1) Akta Kerja 1955.
garnished, the court or the receiver or manager shall not  
authorize payment of the proceeds of the sale, or of the money Ban Hin Lee Bank Berhad v Applied Magnetics (M) Sdn Bhd (In.
so attached or garnished, to the secured creditor or the Liquidation) [2002] MLJU 452
debenture holder until the court or the receiver or manager  
 Employment Law Lecture Notes

shall have ascertained and caused to be paid, out of such Weng Neng Medical & Liquor (KL) Sdn BHd v Fountain Industries Sdn
proceeds or money, the wages of such employee, or the Bhd [1994] 3 MLJ 278
money due to any contractor for labour under a contract
between him and the person liable, which the person liable was
liable to pay at the date of such sale, attachment or
garnishment:

(2) In this section, except for the second proviso, ―wages‖

includes termination and lay-off benefits, annual leave
pays, sick leave pays, public holiday pay and maternity
allowance.

Pembayaran Siapa bayar gaji? (e.g sub-con works)

gaji utk
pekerjaan Majikan prinsipal pula boleh dikenakan tanggungan untuk membayar upah kepada pekerja-pekerja kontraktor mengikut seksyen 33 dengan
banyak majika syarat majikan prinsipal mestilah terlibat di dalam perniagaan atau tred; majikan prinsipal bagi tujuan perniagaan atau trednya telah membuat kontrak
– s.33 dengan kontraktor untuk membekalkan pekerja atau untuk melaksanakan kerja itu dan kerja yang dilakukan oleh pekerja-pekerja kontraktor itu
merupakan perniagaan atau sebahagian daripada perniagaan majikan prinsipal.

Eg: construction – banyak bentuk kerja sub-contract ni bagi khidmat kepada main contractor/developer. Main contractor takde tanggungjawab utk
bayar gaji diorang.

Lembaga Kemajuan Tanah Persekutuan v Mat Akhir Bin Baker [1991] 1 MLJ 60
Singapore MRT Ltd v Moh Puay Kheng [1993] 3 SLR 914