Duties and Responsibilities of Employers and Employees
Safety First
Occupational Safety and Health (OSH) in Malaysia
Occupational Safety and Health (OSH) refers to workplace safety regulations aimed at ensuring the health, safety, and welfare of employees and others affected by work activities. OSH not only protects workers but also co-workers, employers, customers, and the general public from potential hazards in the workplace.
The Occupational Safety and Health Act (OSHA) 1994
The Occupational Safety and Health Act 1994 (OSHA 1994) was enacted by the Malaysian Parliament and gazetted on 25 February 1994. The main objective of the Act is:
“To make further provision for securing the safety, health, and welfare of persons at work, for protecting others against risks to safety or health in connection with the activities of persons at work, to establish the National Council for Occupational Safety and Health, and for matters connected therewith.”
The Act applies to all industries except those under the Factories and Machinery Act 1967 and the Armed Forces. It places responsibilities on employers, employees, manufacturers, and self-employed persons to ensure a safe working environment.
Employer and Employee Responsibilities Under OSHA 1994
Employer Responsibilities:
- Ensure the safety, health, and welfare of employees at work.
- Provide safe work systems, tools, and personal protective equipment (PPE).
- Conduct risk assessments to identify workplace hazards.
- Offer proper training and supervision on safety procedures.
- Establish an Emergency Response Plan (ERP) and fire safety measures.
- Report accidents, occupational diseases, and dangerous occurrences to DOSH (Department of Occupational Safety and Health).
Employee Responsibilities:
- Comply with safety policies and procedures.
- Use provided PPE and safety equipment correctly.
- Report unsafe conditions or workplace hazards.
- Cooperate with employer safety measures.
- Avoid endangering themselves or others.
Types of Workplace Hazards Covered Under OSHA 1994
- Physical Hazards – Noise, extreme temperatures, radiation, vibration, exposure to loud machinery.
- Biological Hazards – Mold, bacteria, viruses, pests, communicable diseases (e.g., COVID-19).
- Chemical and Dust Hazards – Exposure to hazardous substances such as asbestos, fumes, gases, cleaning chemicals, and toxic dust.
- Ergonomic Hazards – Poor posture, repetitive movements, improper lifting techniques leading to musculoskeletal disorders.
- Psychosocial Hazards – Work-related stress, harassment, bullying, excessive workload, long working hours.
- Safety Hazards – The most common type of workplace hazard, which includes:
- Slips, trips, and falls from spills, cluttered workspaces, and uneven surfaces.
- Working at heights (ladders, scaffolding, rooftops).
- Unguarded machinery and moving parts that may cause injuries.
- Electrical hazards such as frayed cords, exposed wiring, and improper grounding.
- Confined spaces with limited oxygen supply.
- Fire hazards, which can cause toxic gas inhalation, suffocation, and burns.
- Machinery-related risks (lockout and tag-out, forklift safety, boiler explosions).
Recent Amendments & Updates to OSHA 1994
- Expanded employer liability to include work-from-home scenarios and the need for comprehensive safety measures in modern workplaces.
- Heavier penalties for non-compliance, including fines of up to RM500,000 or imprisonment.
- Strengthening the role of Safety and Health Committees (SHC) in high-risk workplaces.
Conclusion: OSH compliance is crucial in preventing workplace injuries, illnesses, and fatalities. Employers must prioritize risk management and safety training, while employees must remain proactive in ensuring a hazard-free workplace. By adhering to OSHA 1994, both employers and workers contribute to a safer and healthier work environment in Malaysia.
Employment Policies in Malaysia
Employment policies in Malaysia are governed by various laws enacted by the Parliament of Malaysia, which outline the rights, obligations, and protections for both employers and employees. Below are key legislations regulating employment in Malaysia:
- Employment Act 1955 (Amendments 2022)
- Defines the employer-employee relationship, including contracts of employment (oral or written).
- Covers provisions related to working hours, rest days, overtime, wages, termination, and leave entitlements.
- Expanded scope (2022 Amendment): Now applies to all employees, not just those earning RM2,000 and below.
- Mandates maternity leave (98 days) and introduces paternity leave (7 days for married male employees).
- Ensures protection against forced labor and workplace discrimination.
Note: The Employment Act 1955 only applies in Peninsular Malaysia and Labuan. Sabah and Sarawak have their respective Labour Ordinances.
- Children and Young Persons (Employment) Act 1966 (Amendment 2010)
- Child (Below 15 years old): Cannot be employed except in non-hazardous jobs such as family business, light work, or entertainment (with special permits).
- Young Person (15-18 years old): Cannot engage in hazardous work, such as operating machinery or working underground.
- Industrial Relations Act 1967 (Revised 2010)
- Promotes industrial harmony through negotiation and mediation.
- Provides a mechanism for resolving employment disputes through conciliation, arbitration, or the Industrial Court.
- Regulates procedures for strike actions and lockouts.
- Factories and Machinery Act 1967 (Revised 1974)
- Workplace safety standards for factories and industrial settings.
- Safe operation of machinery and equipment to prevent workplace accidents.
- Employer obligations to maintain a safe working environment.
- Employment (Restriction) Act 1968 (Revised 1988)
- Obtain work permits and employment passes for hiring non-Malaysian workers.
- Adhere to Immigration Act 1966, which penalizes unauthorized employment of foreigners.
- Employees' Social Security Act 1969 (SOCSO)
- Employers must contribute 1.75% and employees 0.5% of wages to SOCSO.
- Covers employees for work-related injuries, disability, and dependents' benefits in case of death.
- Includes Employment Insurance Scheme (EIS) to support employees who are retrenched.
- Employees Provident Fund Act 1991 (EPF)
- Employees contribute 11% of monthly wages, while employers contribute 13% (for wages below RM5,000) or 12% (for wages above RM5,000).
- Expatriates and foreign workers contribute RM5 monthly, while employers contribute a flat rate of RM5.
- Occupational Safety and Health Act 1994 (OSHA 1994)
- Provide a hazard-free workplace and conduct risk assessments.
- Supply Personal Protective Equipment (PPE) and enforce safety protocols.
- Establish an Occupational Safety and Health Committee for workplaces with more than 40 employees.
- Minimum Retirement Age Act 2012
- Sets the mandatory retirement age at 60 years for employees in Malaysia.
- Offer continued employment beyond 60 years (optional for employees).
- Human Resources Development Act 2001 (HRDF)
- Employers must contribute 1% of employees' wages to HRDF.
- Encourages skills development programs to enhance workforce productivity.
- Minimum Wages Order 2022
- RM1,500 per month for all employees.
- Applies to both local and foreign workers.
Principles to Hire the Best Talent in Malaysia
Hiring the right talent is critical for business success. In Malaysia, employers must align their recruitment strategies with local labor laws and industry best practices to attract and retain top professionals. Below are the key principles for hiring the best talent in Malaysia:
- Clearly Define Job Roles and Requirements
- Outline job responsibilities, key skills, and qualifications required.
- Ensure compliance with Malaysia's Employment Act 1955 when setting employment terms.
- Specify expectations for career progression and work environment.
- Ensure Legal Compliance and Fair Hiring Practices
- Follow non-discriminatory hiring policies (no bias based on gender, race, religion, or age).
- Offer employment contracts with legally required benefits (EPF, SOCSO, EIS) as per the Employment Act 1955.
- Abide by the Employment (Restriction) Act 1968 when hiring foreign workers.
- Utilize Multiple Recruitment Channels
- Online job portals (JobStreet, LinkedIn, MYFutureJobs).
- University career fairs and internship programs.
- Industry networking events and professional associations.
- Employee referrals and headhunting services for senior roles.
- Conduct Structured and Objective Interviews
- Include behavioral and situational questions to assess problem-solving skills.
- Use technical assessments for skill-based roles.
- Involve multiple interviewers to minimize bias.
- Maintain a standardized evaluation system for fair candidate assessment.
- Offer Competitive Compensation and Benefits
- Salaries that match industry standards and the Minimum Wages Order.
- Mandatory benefits (EPF, SOCSO, EIS, medical leave) as required by Malaysian labor laws.
- Additional perks such as insurance, bonuses, and flexible work arrangements.
- Focus on Cultural Fit and Long-Term Potential
- Whether candidates align with the company's values and culture.
- Soft skills like teamwork, adaptability, and leadership.
- Long-term career growth potential within the organization.
- Invest in Employee Training and Career Development
- Offer training and upskilling programs (aligned with HRDF Act 2001).
- Provide clear career progression pathways.
- Encourage mentorship and leadership programs.
- Strengthen Employer Branding
- Showcase company culture and employee testimonials on job portals and social media.
- Provide a positive candidate experience during the hiring process.
- Offer work-life balance initiatives to enhance workplace appeal.