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MALAYSIAN EMPLOYERS FEDERATION

HEAD OFFICE: 3A06 3A07, Block A, Pusat Dagangan Phileo Damansara II, No. 15, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya Selangor, Malaysia. P.O. Box 11026, 50732 Kuala Lumpur, Malaysia. Tel: 603-7955 7778 Fax: 603-7955 6808/7955 9008 E-mail: mef-hq@mef.org.my

CircularNo:AG03/2012 4April2012 To:ALLMEMBERS

Employment(Amendment)Act2012
This circular is to inform members of the coming into force of the Employment (Amendment) Act 2012, amendment to the First Schedule to the Employment Act 1955 and the exemption order relating to the application of contractor for labour asdefinedinsection2oftheAct. AppointmentofcomingintoOperationoftheAct The Minister of Human Resources in exercise of the powers conferred by subsection 1(2) of the Employment (Amendment) Act 2012 [Act A 1419] has by Gazette Notification P.U.(B) 85 dated 27 March 2012 appointed 1 April 2012 as the date on whichtheActcomesintooperation. Members are hereby advised that the amendments to the Employment Act 1955 videActA1419tookeffectfrom1April2012. Employment(AmendmentofFirstSchedule)Order2012 In exercise of the powers conferred by subsection 2(2) of the Employment Act 1955 [Act 265], the Minister of Human Resources by gazette notification P.U.(A) 88 dated 30 March 2012, has amended in item 1 under the heading Employee by substitutingthewordsonethousandfivehundredthewordstwothousand. By virtue of the above Order which took effect from 1 April 2012 the term Employee now includes any person whose wages do not exceed two thousand ringgitamonth.Paragraphs2and3oftheFirstScheduleremainunchanged.

Employment(Exemption)Order20I2 The Minister of Human Resources in exercise of the powers conferred by section 2B oftheEmploymentAct1955bygazettenotificationP.U.(A)87dated30March2012 has exempted any person who enters into contract of service with the principal to supplytheemployeesrequiredbytheprincipalfortheexecutionofthewholeorany part of any work for the principal in any, industry, establishment or undertakings otherthantheagricultureundertakingsfromsection31,33A,69and73oftheAct. The effect of the above Order is that a contractor who supply labour to principals in sectors other than in an agricultural undertaking cannot make claims for priority of wagesundersection31andthereisnorequirementtoregisterwiththeDepartment of Labour under section 33 A of the Act. Furthermore the Director General under section 69 cannot inquire into claims in respect of wages due to a contractor for labournorissueprohibitoryorderundersection73againstanemployerforanysum duetoacontractorforlabour. Thankyou. HjShamsuddinBardan ExecutiveDirector

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