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TABLE OF CONTENTS
1.

INDUSTRIAL RELATIONS.................................................................................2

2.

BACKGROUND................................................................................................. 2

3.

DEFINITION..................................................................................................... 2

4.

THE ROLES...................................................................................................... 2

5.

THREE MAJOR LAWS THAT GOVERN MALAYSIA INDUSTRIAL RELATIONS......3

6.

INDUSTRIAL RELATIONS SYSTEMS IN MALAYSIA............................................4

7.

WHO NEEDS TO UNDERSTAND THE THEORY AND PRACTICE OF INDUSTRIAL

RELATIONS?.................................................................................................... 6

8.

OF DEPARTMENT OF INDUSTRIAL RELATION..................................................7

9.

SERVICES PROVIDED BY DEPARTMENT OF INDUSTRIAL RELATION................7

10. PROCESS CLAIMS FOR RECOGNITION OF TRADE UNIONS...............................8

11. PROCESS REPRESENTATIONS FOR REINSTATEMENT.......................................9
12. INDUSTRIAL HARMONY.................................................................................10
13. OCCUPATIONAL SAFETY AND HEALTH..........................................................11
14. BACKGROUND............................................................................................... 11
15. THE OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) 1994.........................11
16. CONTENT OF THE ACT................................................................................... 11
17. SCOPE............................................................................................................ 11
18. STATUTORY ARRANGEMENTS........................................................................11
19. REGULATIONS (OSHA-SECTION 66)................................................................12
20. CODES OF PRACTICE..................................................................................... 12
21. GENERAL DUTIES.......................................................................................... 12
22. MEDICAL SURVEILLANCE............................................................................. 13
23. OCCUPATIONAL SAFETY AND HEALTH COMMITTEE.....................................13
(OSHA-SECTION 30)........................................................................................ 13

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24. OCCUPATIONAL SAFETY AND HEALTH (OSH) OFFICER..................................13

25. NOTIFICATION OF ACCIDENTS AND OCCUPATIONAL DISEASES.....................13
26. ACCIDENT INVESTIGATION...........................................................................14
27. ENFORCEMENT AND LIABILITY....................................................................14
28. THE NATIONAL COUNCIL FOR OCCUPATIONAL SAFETY AND HEALTH...........15
29. DEPARTMENT OF OCCUPATIONAL SAFETY AND HEALTH (DOSH)...................15
30. CONCLUSION................................................................................................. 15
31. REFERENCE................................................................................................... 16

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1.

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INDUSTRIAL RELATIONS

2. BACKGROUND
Industrial relations/labour relations is a study of relationship between employees and their
employers pertaining to the employees employment or non-employment, terms and
conditions of work, grounds of termination of employment, etc. It also refers to the
management of employees welfare and internal communications. Industrial relations
stresses the importance of 3 major areas:
2.1. Relationship between employers and trade unions
2.2. Relationship between employers and trade unions
2.3. Disciplinary procedures and termination of the employment contract
3. DEFINITION
The term Industrial Relations comprises of two terms: Industry and Relations.
Industry refers to any productive activity in which an individual (or a group of
individuals) is (are) engaged. By relations we mean the relationships that exist within
the industry between the employer and his workmen. Therefore, industrial relations
explain the relationship between management and workers, particularly groups of
workers represented by a union and also interactions between employers, employees, the
government, the institutions and associations through which such interactions are
mediated.
4. THE ROLES
Its role is to strengthen the harmonious relation between the employers and to avoid any
form of exploitation and discrimination in the workplace or outside of the workplace.
Industrial relations also includes the processes through which these relationships are
expressed (such as, collective bargaining, workers participation in decision-making, and
grievance and dispute settlement), and the management of conflict between employers,
workers and trade unions, when it arises.

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4.1. INGREDIENTS IN AN INDUSTRIAL RELATIONSHIP

5. THREE MAJOR LAWS THAT GOVERN MALAYSIA INDUSTRIAL

RELATIONS
5.1. Employment Act 1955
This act stipulates regulations covering all aspects of employment of workers.
Among provisions covered are termination, working hours, maternity and sick leave
benefits and wage payments. The provisions aim to safeguard against exploitation by
employers. The specific coverage including:
5.1.1. To provide minimum benefits for those workers covered by the act.
5.1.2. To establish certain rights for employers.
5.1.3. To establish certain rights for employees.
5.2. Industrial Relations Act 1967
This act regulates the relationships between employers and their workmen through
trade union including:
5.2.1. To provide and encourages harmonious relation between employers and
employees.
5.2.2. To provide guidelines on collective bargaining between employers and
employees.
5.2.3. To establish procedures for settlement of trade disputes.

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5.3. Trade Unions Act 1959

This act establishes the responsibilities of trade unions and their members including:
5.4. To provide the rules on the right of employees to form, join and participate in
any lawful trade union activities.
5.5. To provide the rules on the right of employers to form, join and participate in
any lawful employers association activities.
5.6. To establish and promote legislation affecting the interest of the trade union
member.
6. INDUSTRIAL RELATIONS SYSTEMS IN MALAYSIA
Is recognised as a tripartite system and is made up of 3 groups and Ministry of Human
Resources act as a president which the role is to oversee the overall development of
discussion. The 3 groups includes;

Employers and their organizations

Employees and their unions

Government
6.1. Machinery for Discussion in Tripartite System
6.1.1. National Labour Advisory Council (NLAC) which is made up of 14
representatives from employees, 14 from employers and 12 from government.
6.1.2. Minister of Human Resources will chair the NLAC meetings and appoints the
government representatives.
6.1.3. Other representatives are appointed after consultation from Malaysian
Employers Federation (MEF), Malaysian Trade Union Congress (MTUC) and
Congress of Unions of Employees in Public and Civil Service (CUEPACS).
6.1.4. Meeting is held twice a year or when there is urgency (eg. to approve
amendments to the law).

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6.2. The Nature of Employment Organization-Approaches to Industrial Relations

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6.3. Role of Employers and Their Organizations

6.3.1. Promote and protect the interest of their members
6.3.2. To negotiate and deal with trade unions of employees
6.3.3. To represent their members in any trade dispute between an individual
member and employees union
6.3.4. Types of union
6.3.4.1. Private sector
Represented by Malaysian Trade Union Congress (MTUC). Issues
include minimum wages for workers, cost of living, foreign workers
6.3.4.2. Public sector
Represented by The Congress of Unions in The Public and Civil
Service (CEUPACS)
6.4. Role of Employees and Their Unions
6.4.1. An employee has a right under Section 4 of the Industrial Relations 1967 to
join a trade union
6.4.2. Types of union
6.4.2.1. Private sector
Represented by Malaysian Trade Union Congress (MTUC). Issues
include minimum wages for workers, cost of living, foreign workers
6.4.2.2. Public sector
Represented by The Congress of Unions in The Public and Civil
Service (CEUPACS)
6.5. Role of Government in the Industrial Relations Systems
6.5.1. Legislator through parliament
6.5.2. Administrator-through the Ministry of Human Resources
6.5.2.1. To protect the welfare of employees-safety, health and rights
6.5.2.2. Promote good employer-employee relationship through a stable and
peaceful Industrial Relations system
6.5.2.3. To equip the unemployed with basic industrial skills and to improve
the skill level of the workforce
6.5.2.4. To assist in maximizing countrys manpower resources through
manpower planning
6.5.3. Participant-by being the largest employer in the country
6.5.3.1. Employee in the public, private and government sectors

7. WHO NEEDS TO UNDERSTAND THE THEORY AND PRACTICE OF

INDUSTRIAL RELATIONS?
Workers

To know their rights under the labor law, to be aware of benefits they can
gain by joining a trade union, to understand that there may be certain risks
associated with being a member to a union and they should know to whom

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Managers

Lawyers

Trade Unions
Leaders
Officers &
Executives in HR
& IR department

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they could complain if their employer fail to provide them with benefits
provided under the law
IR is important to managers because there is a direct link between
profitability and good industrial relations. Bad management will cause
LOW productivity, poor morale, conflict, miscommunication, negative
attitudes and high turnover rates as workers leave to look for more
satisfying workplaces elsewhere.
They are often called upon to represent workers or employees at the
Industrial Court or at Labor Department hearings, High Court, Court of
Appeals or Federal Court
To know how to play their role effectively so that workers will be
protected from exploitation by greedy employers
They need to have strong working knowledge of principles, concepts and
laws so that they can carry out their job responsibilities well.

8. FUNCTION OF DEPARTMENT OF INDUSTRIAL RELATION

8.1. Advisory
Advise the minister on all industrial relations matters and related legislation
including matters of reference to Industrial Court. Advise employers and
employees and their unions and other organizations on industrial relations matters
generally.
8.2. Promotion & Service
Encourage the growth and development of democratic and responsible trade unions
of workers and employers by establishing joint voluntary negotiating machinery
for resolving the differences. Provide conciliation services and maintain close
contact with organisations of employers and employees so as to foster good labour
management relations.
8.3. Prevention
Assist in the prevention and settlement of trade disputes, strikes and lockouts by
pre-emptive action.
8.4. Statistics & Information
Collect statistics relating to wage trends, disputes, strikes and lock-outs, collective
agreements and cases of dismissal. Prepare reports on matters concerning trends in
industrial relations, wage rates and conditions of employment.
9. SERVICES PROVIDED BY DEPARTMENT OF INDUSTRIAL RELATION
9.1. Promote Code of Conduct for Industrial Harmony
It stresses that it is only with an abundance of goodwill, combined with constant
consultation and communication between the parties involved, that we can hope to
contain the destructive expression of industrial conflict and encourage a more

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equitable and efficient system for the benefit of those involved and the community
at large.
9.2. Facilitate Collective Bargaining
An invitation to collective bargaining shall be in writing stating the proposals for
collective agreement. If there arises a deadlock then the department will provide
conciliation services to help resolve the dispute.
9.3. Provide Advisory Services
The department plays an active role in advising both employer, employee and their
respective unions in maintaining a good, positive and harmonious relationship
between them. Parties are also advised on the procedures and accepted norms of
good industrial practices to be followed so as to come to a fair and quick
conclusion to their dispute whether in good or crucial time.
9.4. Resolve Trade Disputes
A Trade Dispute is defined as any dispute between an employer and his workmen
which is connected with the employment or non-employment or the terms of
employment or the conditions of work of any such workmen 1. Under the Industrial
Relations Act, 1967 the process of resolving trade disputes are as follows:
9.4.1.
Bilateral negotiation between employer and employees.
9.4.2.
Conciliation by the Industrial Relations Department.
9.4.3.
Adjudication by the Industrial Court.
Diagram1: Process flow for resolving trade dispute

Section 2 Industrial Relations Act, 1967

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10. PROCESS CLAIMS FOR RECOGNITION OF TRADE UNIONS

A trade union has to be recognised by the employer before it can start collective
bargaining. To obtain recognition, the trade union is to serve a claim for recognition upon
the employer in a prescribed form2. The employer is required to respond within 21 days,
either:
10.1.
Accord recognition
10.2.
Decline granting recognition and inform the union the grounds for it, or
10.3.
Apply to the Director-General of Industrial Relations to ascertain the
representative position of the union and notify the union accordingly.
11. PROCESS REPRESENTATIONS FOR REINSTATEMENT
A workman who considers his dismissal as without just cause or excuse may file a claim
for reinstatement within 60 days of his dismissal3.

Diagram 2: Process flow for claiming for reinstatement

12. INDUSTRIAL HARMONY

It is important to keep the existence of a peaceful relationship between trade unions
who representing the workers and workers employees. This is to ensure the followings
are achieved;
2
3

Form A - Industrial Relations Regulations, 1980

Section 20 of the Industrial Relations Act, 1967

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12.1.1. Increase productivity and attract more investment opportunities

12.1.2. Workers are more motivated and committed and prevent industrial actions
from employees
12.1.3. To promote the development of trade union and its members and the employer
to be democratic and responsible
12.1.4. To promote and help voluntarily collective bargaining between the employer
and the employee related to the responsibility, working environment and other
related condition to uphold self-interest of parties
12.1.5. To promote the conducive working environment for the purposes of balancing
dispute resolution and to increase high productivity between the employer and
the employee
12.1.6. To cooperate with other interested agencies for the purposes of labour relation
management and to settle disputes towards peace and harmony.

13. OCCUPATIONAL SAFETY AND

HEALTH

14. BACKGROUND
A new Act, known as the Occupational Safety and Health Act, 1994 was passed on 24
February 1994. The Act is superimposed over existing safety and health legislation, such
as the Factories and Machinery Act, 1967.
15. THE OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) 1994
The Occupational Safety and Health Act 1994 provides the legislative framework to
promote, stimulate and encourage high standards of safety and health at work. The Act
places certain duties on employers, employees, self-employed persons, manufacturers,
designers and suppliers. It also emphasis on the prevention of accidents, ill health and
injury. The long-term goal of the Act is to create a healthy and safe working culture
between all Malaysian employee and employers.
16. CONTENT OF THE ACT
Provisions of the Occupational Safety and Health Act complement provisions of the
existing legislation and in the event of any conflict, provisions of the Act shall prevail.
The Act defines the following;
1.1 General duties of employers, manufactures, employees, the self-employed, designers,
importers and suppliers.
1.2 Provides appointment of enforcement officers, establishment of National Council for
Occupational Safety and organizations policy.

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1.3 Powers of enforcement and investigation and liability for offences are also clearly
spelt out.
The above provisions result in one comprehensive legislative framework to deal with the
management of safety and health of virtually all protection of the public where they may
be affected by the activities of people at work.
17. SCOPE
All persons at work in manufacturing; mining and quarrying, construction, agriculture,
forestry and fishing, utilities, transport, storage and communication; wholesale and retail
trades; hotels and restaurants; finance, insurance, real estate and business services; public
services and statutory services also protected.
18. STATUTORY ARRANGEMENTS
New provisions are made to gradually replace the existing safety and health provisions. It
must be formulated to maintain or improve the safety and health standards established by
existing legislation, the objective being not only to rationalize and update the law but also
to improve the standard of protection, it affords to people at work and the public.
19. REGULATIONS (OSHA-SECTION 66)
The Act provides a wide regulation-making power to the Minister that normally be
formulated on the basis of proposals submitted by the National Council for Occupational
Safety and Health after consultation with tripartite organizations. Regulations may
prescribe minimum standards or have a general application or they may define specific
requirements related to a particular hazard or particular type of work.
20. CODES OF PRACTICE
The Minister may, upon recommendation from the Council or Director General, approve
and gazette industry codes of practice as guidance in complying with the Act. The
preventive strategies outlines in a code of practice do not represent the only acceptable
means of achieving the standard to which the code refers, but failure is held to be proof of
contravention of a requirement to which a code applies unless a defendant proven
demonstrated compliance.
21. GENERAL DUTIES
General duties of employers, employees, self-employed; and designers, manufactures,
importers and suppliers of plant or substances are clearly defined under the Act. The
main duties are summarized as follows:
21.1. Duties of Employers
This applies in particular to the provision and maintenance of a safe plant and
systems of work to safeguard safety and welfare of the employees. Employers must
ensure that the work premises and its working environment are safe and without
risks to the health of his employees.

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21.1.1.

Safety and Health Policy (OSHA-Section 16)

A written statement of general policy, organization and arrangements for
safety and health at work, keep it up-to-date, and bring it to the notice of
employees.
21.1.2. Safety Information, Instruction, Training and Supervision
Employers duty to provide the necessary information, instruction, training
and supervision in safe practices, including legal requirements.
21.1.3. Duties of Employers to Others
Employers must conduct their activities so as to ensure that people other
than their employees such as members of the public, are not exposed to
risks to health and safety.
21.2. Duties of Self-employed Persons
A self-employed person has the same general duties to ensure he and other people,
not being his employees, are not exposed to risks to their safety and health resulting
from his undertakings.
21.3. Duties of Designers, Manufacturers, Importer and Suppliers
They must carry out of testing and examination to ensure that the plants and
substances use are safe and without risk to health.
21.4. Duties of Employees
Employees have a duty under the Act to take reasonable care to avoid injury to
themselves or to others by their work activities and to cooperate with employers
and others in meeting statutory requirements.
22. MEDICAL SURVEILLANCE
The Minister may through regulations, require medical surveillance be carried out for
certain class or industries whose operation may pose risks to health or workers by persons
registered with the Director General.
23. OCCUPATIONAL SAFETY AND HEALTH COMMITTEE
(OSHA-SECTION 30)4
An employer of 40 or more persons, or when directed by the Director General, must
establish a safety and health committee at the workplace. The committees main function
are as follows:
23.1. To keep under review the measures taken to ensure the safety and health at the
workplace
23.2. To investigate any safety and health matter brought to attention of employer.
24. OCCUPATIONAL SAFETY AND HEALTH (OSH) OFFICER
A competent person must be employ to act as a Safety and Health Officer, whose job is to
ensure compliance of the Act promotion of safe workplace.
4

Checklist For Safety & Health Committee Meeting

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25. NOTIFICATION OF ACCIDENTS AND OCCUPATIONAL DISEASES5

An employer must notify the nearest OSH Officer of any accident, dangerous occurrence,
occupational poisoning or disease, which has occurred or is likely to occur at the
workplace. If the occurred event was triggered by any of occupational poisoning or
diseases listed in the Third Schedule of the Factories and Machinery Act 1967 or named
in any regulation or order made by the Minister under the Act, the registered medical
officer attending to must make a report to the Director General.
26. ACCIDENT INVESTIGATION
Immediate accident investigation is to obtain accurate and full information about the
circumstances and causes of the accident. The following to be established to ensure all
causes are successfully identified;
26.1. Events leading up to the incident
26.2. Facts of the incident itself
26.3. Relevant facts of what occurred immediately after the incident
The line manager is in the best position to investigate the accident due to the familiarity
with the people concerned, the work area, method of work and equipment or chemical
involved. The principle of accident prevention as follows;
26.4. Identification of hazards, risk assessment and risk control6
A usage of checklist7 during workplace inspection may help the activity carry out
effectively. Meanwhile audits exercise is a proactive system that indicate the risks
within the organization are being effectively controlled and meeting the OSH Policy
objectives.
26.5. OSH promotion and communication to influence behaviour and encourage safe
attitude.
A record form8 of incident should be completed to assist recording of those details for
statistical analysis which consist of;
A summary of what happened
An introductory summary of events prior to the accident
Information gained during investigation
Details of witnesses
Information about injury or loss sustained
Conclusions
Recommendation
Supporting material namely photographs, diagrams etc
The date and be signed by person or persons carrying out the investigation

JKKP 7 Form of Notification of Accidents, Dangerous Occurrence, Occupational

Poisoning and Occupational Disease-Regulation 2004
6
OSH Committee-Hazard Identification, Risk Assessment & Risk Control Table (HIRARC)
7
Workplace Inspection Checklist
8
Register of Accident, Dangerous Occurrence, Occupational Poisoning and Occupational
Disease

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27. ENFORCEMENT AND LIABILITY

An OSH officer whom appointed by Minister may enter, inspect and examine any
workplace upon production of his certificate of authorization. If OSH officer discovers a
contravention of one of the Act or its related legislation he may take the following
actions:
27.1. Issue a prohibition notice to stop the activity-giving rise to the risk, until the
remedial action specified in the notice has been taken.
27.2. Issue an improvement notice if there is a legal contravention of any of the relevant
statutory provisions, to remedy the fault within a specific time.
27.3. Prosecute any person contravening a relevant statutory provision, instead of, or in
addition to, serving a notice.
A person is liable to prosecution if failure to comply with the improvement or prohibition
notice which could lead to a maximum find of RM50, 000 or imprisonment for a term not
exceeding 5 years, or both. The Director General of OSH may prohibiting the use of any
plant or substance which is likely to affect the safety and health or persons at work. A
person who serves a notice, may appeal to the Director General and may appeal to an
appeal committee appointed by the Minister if aggrieved with a decision of the Director
General
28. THE NATIONAL COUNCIL FOR OCCUPATIONAL SAFETY AND HEALTH
The National Institute of Occupational Safety and Health (NIOSH) were established in
December 1992. The Council shall be appointed by the Minister to be Chairman of the
Appeal Committee with membership shall not be less than 12 or not more than 15. The
Council have power to carry out investigations in a broad health and safety issues.
NIOSH also undertakes the responsibilities of cultivating and promoting safety and health
culture at the workplace through its training programs, information dissemination,
consulting services and research.
29. DEPARTMENT OF OCCUPATIONAL SAFETY AND HEALTH (DOSH)
Enforcement of OSHA 1994 in Malaysia falls under the DOSH. Divisions housed in the
headquarters are:
Industrial Safety Division
Industrial Health Division
Co-ordinations and Planning Division
Major Hazards Division
Administrative Division
The department also has offices in most states in the country. DOSH undertakes the
responsibility of enforcing the laws on OSH.

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30. CONCLUSION
It is quite clear that the acts related to Industrial Relations and Occupational Safety and
Health stipulate a comprehensive set of provisions for effective management of safety and
health and relationships among all parties at the workplace. Undoubtedly, compliance
with all provisions of the acts will greatly improve the productivity of employees,
increase profitability of the employers and harmonize industrial relationships within the
organizations and external parties namely other organizations, vendors, related
associations.
31. REFERENCE
31.1.
National Institute of Occupational Safety and Health (NIOSH),
www.niosh.com.my
31.2.
Industrial Relations Act, 1967
31.3.
Malaysian Industrial Relations System: Its Congruence with the
International Labor Code, Dr. V. Anantaraman, Multimedia University,
Cyberjaya
32. ATTACHMENT
32.1.
Checklist for Safety & Health Committee Meeting
32.2.
JKKP 7 Form of Notification of Accidents, Dangerous Occurrence,
Occupational Poisoning and Occupational Disease-Regulation 2004
32.3.
OSH Committee-Hazard Identification, Risk Assessment & Risk Control
Table (HIRARC)
32.4.
Workplace Inspection Checklist
32.5.
Register of Accident, Dangerous Occurrence, Occupational Poisoning and
Occupational Disease

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