FAJAR INTERNATI ONAL COLLEGE

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os H LEf8ntri Sl"t orn,.o,

TOPIC:
EMPLOYMENT ACT re55
EMPLOYEES' SOCIAL SECURITY ACT re6e

DAY 3

3y Joflni P6hslnh,20lo

. 2' tF'"
Introduction /ZA\
.........-//1 z \\.......
\4
. This federal Act generally only applies to
Peninsular Malaysia, and provides conditions
relating to emplopnent, contracts of service and
termination and sets minimum conditions of
employment which include provision of public
holidays, paid annuai and sick leave, normal
working hours, overtime rates and materniry
allowances.
. Extended to Federal Territory of Labuan , zooo

By Jotihr P6n9lrrn, 2010

W O-bjectives of EA 1955
-_@
. To provide legal provision pertaining to employment
of employees
. To ensure rights of workers employed by the employer

By Jofin. P.nglrrh' 20lo

 lnto 21 parts:
Part r Preliminary
Part z Contracts of service
Part 3 Pa)rments of wages
Part 4 Deductions from wages
Part 5 Rela ng to the truck system
Part 6 Prior ry of wages
Part 7 Contractors and principais

Part 8 Employment of women

Part 9 Maternity protection
Part ro Employment of children and young persons
Part II Domestic servants
Part L2 Rest days, hours ofwork, holidays and other
conditions of service
Part 13 Termination, lay-off, and retirement benefits
Part r4 Employment of foreign employees

Part r5 Registers, returns and notice boards

Part r6 Inspection
Part r7 Complaints and inquiries
Part r8 Procedure
Part 19 Offences and penalties
Part zo Regulations
Part zr Repeal and saving
 I''::r6:atiol
,s'
. Employee
. Employer
. Place of Work
. Contractor
. Contracts of Service

!y Jothr P.a9lrrn,20lO

Employee

A person who has entered into a contract earning a

mfnthly income of RMr,5oo or less JOoO " o. Un,
' Anyone regardless of the monthly income and engaged
in the following:

Fo vanual labour (vv.rLit,"[)

, fo Operations or maintenance of vehicle for transport of
I passengers or goods or for commercial purposes
!o Supervision of other employees engaged in manual
I labo,,r
{o-o n ,V capaciry in any vessel registered in Malaysia

Emp_l.oyer
.-@
. Any person who has entered into a contract of service
to employ any other person as an employee and
including agent and Manager

3y Jotln. F.n9lrrn, ZolO

2
 Place of work
. Ary place where worl< is carried out for the employer
by the employee

l, Jotlh. P?nglran, 20t0

Contractor
. Any person who contracts with a principal to carry out
the whole or any part of any work undertal<en by the
principal

Ey Jollhr Ponglrrh, 2010

Contractor of Service
. Aly agreement whether oral or in writing and
whether expressed or implies, whereby one person
agrees to employ another as an empioyee and the
other agrees to serve as an employee, including
apprenticeship contract.

By Jotln. Frnglrant 20J0

 Contractors & Principals

. Liability of principals and contractors for wages

!y Jotlh. Pchglr.n, 201o

ana H elftrr
l:"-:::": :"*?ffi :' :.':_.' \v/

,. Employment of women
2. MaternityProtection
3. Sick Leave
4. Rest days
5, Hours of Work
6. Annual Leave
7. Work on Rest Day

Ay Jollnr Penglrrn, 2010

r. Employment of women
. Prohibition of night work:
-- (@)

o Work berween lo.oopm and 5,ooam is subject to

approval by Director General
o Work in any industrial or agricultural sector
o Work the following day without having had a
period ofeieven consecutive hours rest from such
work.
. Prohibition of underground work:
o For purpose of extracting any substance below
surface of the earth, the egress and ingress from
which by means shafts or natural caves
ay Joflha P.hsl.!h, 201O

4
 z. Materniff Protection
@
. Parturition resulting fiom at least z8 weeks of
pregnancy
. Limited to 5 surviving children
. Employed for at least 9o days during the 9
months immediately before confi nement
. Maternity leave of at least 9o consecutive days
of each confinement
. Minimum rate of maternity allowance of RM6/-
per day.

ly Jotinr Plngl.rh, 2010

3. Sicllleave
lLl * /^")-, .
@
r4 days in a calendaryear for employment of less
i? than z years
. r8 days in a calendaryear for employment of at least
.:? -
z years but less than 5 years
. zz days in a calendaryear for employment of at least
5 years
. 6o days if hospitalized

It' Jotlnr Pcngirrn, 2010

W 4. *"Adays
v
' One rest per week
. DutI Roster shall be prepared by Employer
. l rest day after 3o hours of continuous work

ly Jollrr P.ngl7an, 20l0

 5. Hours_of
/A\
Work
16) l-..-----
v
-{( .

. At least 3o minute breal< after 5 hours of work

' Not more than 8 hours of work per day
. Not more than 48 hours per week

ly Jotlnr P.h€lr.h. 2O1O

6. Annual Leave
'/'
tJ . 8 days for every rz months of continuous service
\ ': '-Z (less than z years and below)
. rz days for every rz months continuous (at least z
years but less than 5 years)
. 16 days for every tz continuous months of service (
5
years and above)

Sy Jorinr Prngtnn,20lO

W 7. Work /A\
on Rest D.y
{(1E)}
\v/
. Work to be carried out continually by at least z shifts
. Occurrence of accidents at the workplace
. Work essential to the life of the community
. Urgent work to be done to machinery and plant
. Essential to the defense of national securily
. Unforeseen circumstances
. Essential to the economy of Malaysia
(no employer may require any employee to work more
than rz hours in any day except to the above situations)

3y Jottn. PchglrEn, 20to

6
 21t08t53

b\"v',#
S+ffi FAIAR INTERNATIONAL COLLEGE
b;rF.r'
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osH LEf8nfi8ftfbrn,"or
TOP]C:
SOCSO
EMPLOYEES' SOCIAL SECURITY ACT re6e

DAY 3

Employees' Social Security Act divided into 7 parts:

Part r Preliminary

Part z lnsurabiliry and Contributions

Part 3 Benefits

Part 4 Administration, Finance and Audit

Part 5 Adjudication of Dispute and Claims
Part 6 Penalties

Part 7 Miscellaneous

Introduction
,A
-- ----...-{(v/r )i. --- .

' The Social Security Organization (SOCSO) was

established in r97r under the Human Resources
Ministry to implement and administer the social
security schemes under the Ernployees' Social
SecurityAct 1969 (Act a).
. Under this scheme, workers are protected against
industrial accident including accident occurred while
working, occupational diseases, invalidity or death due
to any cause.
 21t08t53

SOCSO's function includes regisrratlon of ernployer and

employee, collecting contribution, processing benefit clarms and
rrake pavment to the injured rvorker and their dependents

SOCSO also provide vocarronal and physical rehabilrration

benefils and enhance occupationar safetv and hearth awareness of
workers.

On the lst July 1985, SOCSO from a goverrunenl deparrmenr

became a Statutory Body On lsr Januarl, l992,SOCSO
implemented its own remuneration scheme knorvn as Srs/ern
Saraan Earu PERKESO ,558p).

SOCSO'S Mission and Vision

. Mission
SOCSO is committed to ensure socio-economic
security of all working Malaysian citizens including
their dependants rhrough Schemes Of Social Securit!
and enhance occupational safety and health .*"t".,"ri
for employees well-being

. Vision
Ideal and excellent social security leader

w Corporate Goal and Objective

. Corporate Goal
To provide comprehensive social securiry protection
for Malaysians.

. Corporate Objective
To ensure and guarantee the timely and adequate
provision of benefits in a socially just manner and to
promote occupational health and safety
 21t08t53

SOCSO's Safery and Health Policv

. SOCSO
-@
commits to ensure it will be a healthy and
highly secured organisation based on the principle
that safe$ and health is a common responsibiliry.
The management and staff commits to create and
maintain a safer and healthier work place which will
prevent work injuries and damages to property and
life.

Client Charter
/4,
;"; :" ;;;. ;;;;;"
wiihin amonih
;$#;,";,' ";; ;*;" ;;;,".;
Pay permanent disablement benefit (first payment) and constant
aftendance allowance to all injured employeis within 3 months.
Pay dependant's benefit (first payment) to dependants within I months.
Pay invalidiry pension (fi rst payment )/invalidiry grant/constanr
aftendance allowance to employees who qualify *ithin a period of 3
months.
Pa1, ru,.rtuor'r pension (hlst payment) to dependants rvithin a per.iod of 3
months.
Pay funeral Lrenefits to eligible dependants of deceased pelsons rvithin r5
days.
Register neu'employers and emplol,ees and inform employer of their code
number and employees social securiry registration number within r
month.
Re-iruestigate and provide information on every complaint regarding
benelrt clarms wrthrn 2 week

M Employment Injury Insurance Scheme

 21t08t53

,f

Employment lnjury Protection

r, Traveling (Commuting accident)

z. Arising out of and in the course of
employment
3. Occupational Diseases

w Traveling ( Commuting accident)

\Y/ {o)
. while traveling on a route between his place of
residence/stay and his work place
. while traveling between his work place and the place
he tal<es his meals during any authorized
*:::
. while traveling on a journey directly connected to
his work
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t r Lrgl'
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Traveling (Commuting accident)

. AII commuting accidents are considered as

emplol.rnent related as long as the accident does not
occur during a stoppage or deviation done for
personal reasons. All reports of commuting
accidents must be accompanied by a police report
and a sketch map of the route indicating the route
taken, the place of the accident, the place of work
and the place of stay/residence as well the place
where he takes his meals.
 21t08t53

acci d ent)
lravet::: l:'*Putins
{@-
Arising out of and in the course of
employment
Accidents occurring while working at
the work place which arise out of the
employment.

Occupational Diseases .\ \/*

^z(L'
(_-

oI
I]
. Diseases that result due to exposure at work to
c/1
various hazards, examples of which are :-

\ - o Loss of hearing (due to exposure to excessive noise at

the work place] respiratory diseases or industrial
asthma as a result o[ exposure to dust for employees
in sawmills, powder factories, flour plants arid '
oth ers).

o (The listed scheduled occupational diseases are found

in the Fifth Schedule of the Employee's Social
Security Act, r969).

Method of Reporting and Making Claims Acr,fuit 0opr\ 6r*fp2r * (Ft,* 'o, L.{, er"a ' ?d,.E lep.+
a&erdantc._ yuc,odt .r Qtat-Ctn',plan)
. All commuting and worl< related accidents have to be
reported by completing the Accident Report Form (Form ^ --vbI
:\W-/
zr), The facts regarding the accidents and injury have to be
recorded clearly and in detail.
Z!o-r6a
. An employer's statement, claims Form ro and sick leave
certificates should be attached to the completed Form zr, A
police report, attendance records and a sketch plan are
additional requirements to report commuting accidents.
. Occupational diseases can be reported using Form 68 if
the employee is still in employment or Form 69 if he has
ceased employment. The completed application should be
sent to the nearest local office for processing.
 21t08t53

u.":nts of Emll Insurance

,$
rm: 1"1""
v

Medical Benefit

SOCSO Panel Clinic or at any government hospital or clinic.

The employee or his representative is required to bring along

an Accident Report (Form zr) or an ldentification Letter from
his employer or Report of Occupational Diseases Form 68 &
Form 69 (whichever is relevant) to enable him to get free
treatment. SOCSO will settle his medical bill by directly
paying the medical treatment provider.

Medical Benefit

. If the treatment is received in a SOCSO Panel Clinic,

the employee must continue the treatment at the same
clinic until he recovers unless he is referred to a
Government Hospital.

Bl Jofrnrp.nBrr!., lll I (l
 21t08t53

Medical Benefit

. ;;; ";J;;..9;;;;;.
"; occupdtional disease, he is entitled to
from any
;;;;,;
treatment at a SOCSO Panel Clinic or at any
government hospital or clinic.

. The emplovee or his reDresentative is reouired to

bring albng an Acciderit Report (Form zr) or an
Ideniification Lefter from tiis employer or Report of
Occupational Diseases Form 68 & Form 6q
(whic}ever is relevant) to enable him to get free
treatment. SOCSO will settle his medicaT bill bv
directly paying the medical treatment provider.'

How to Claim

Accidents at Worl< Places

. Accident Report (Form zr)
. Form ro (Claims Form)
. Doctor's Certification (Borang r3) or the original copy of a
Medical Certificate
. Copy of ldentity Card
. Attendance records.

-^
.. ../6iir
\V/
. lf the treatment is receivedY a SOCSO Panel Clinic, the
emDloyee must continue the treatment at the same clinic
until he recovers unless he is referred to a Government
Hospital. ln case of a serious injury, the treatment should be
at the nearest government hospital. The employee is eligible
for second class ward treatment at the hospital if he requires
in-patient treatment. Specialist treatment, if required will
also be orovided at a eovernment hospital. An emplover mav
submit a claim for re'imbursement f6r medical eipdnditu16
incurred at a non SOCSO Panel Clinic for consideration.
 21t08/53

Temporary Disabl
ble me nt Benefit

. @
This benefit is payable to an employee who has been certified
by a doctor to be unfit for work for not less than days
4
including the day of the accident. This benefit is paid for the
period the employee is on medical leave. However, no benefit
will be paid for the days or which the employee works and
earns wages. during this period.
. The daily rate of temporary disablement benefir is equivalent
to 8o%o of the average assumed daily wage. However, if the
daily rate is below Mfuo.oo the employee will be paid a
minimum rate of Mfuo.oo. The maximum rate payable foran
employee whose wage exceeds MRz,goo a month is MR7g.67
per day.

How toc laim

Commuting Accidents
@
. Accident Report (Form zr)
. Form ro (Claims Form)
. Doctor's Certification (Borang r3) or the original copy of a
Medical Certificate
. Copy of ldentiry Card
. Aftendance records
. Oo[r.C f4po*
The insured person should make a pelec a'Uout the accident
and obtain a copy of the report and submit it to his/her
employer and
. A sketch map of the place of accident.

Permanent Disablement Benefi t

. Thisben.efit.is payable to an employee who has been certified,

by g Medical Board or an Appellare-Medical Board, to be
suflering fiom Permanent Disablement as a result of an
employment injury If the permanent disablement is assessed
to be roo%0, the daily rate ii equivalent to goo/o of the average
assumed daily wage, subject rb a minimum daily rate of
RMro.oo.
. lf the permanent disablement is assessed to be zoo/o or less
the employee can claim the benefit be paid as a lump sum.
 21t08t53

Permanent Disablement Benefit

-@-
. However, if the.assessment of the loss of earnings
capaciry exceeds zoo/o, the employee is grven an
option io commut etl5 of the itaily rate"of
permanent disablement benefit into a lump sum
payrnent-whil-e the balance will be paid as d monthly
pension for life
. Tll. employee may continue to work while receiving
thrs benetrt.

W How to Claim
/A\
v
'...----.'...'..--{ll l(,

The employee has to submit the following documents :

ll i-...-..--....-.--

. A written application to the SOCSO Local Office for

reference to the Medical Board or Special Medical Board.
. Medical Report (The employee is required to get a medical
repoft from the hospital or clinic which treated him).
. Form ro (claim form), and
. A copy ofthe saving book from a designated bank for
purposes ofdirect payment into the saving account.

Constant Attendance Allowance

z.Ar

;;;;",;;;";."
I nrs ailowance ;;";;;;H";".;;;;, ;;;";;;;;
ls Paro ro an emproyee-wno ls surlennE Irom
permanent total disablement (i.e. rooo/o loss of earnings
capaciry), and is so severely incapacitated that he conitantly
reeuires the personal attendance ofanother person. The
allowance is bqual to 4oo/o of the rate of permanent total
disablement benefit subject to a maximum of RM5oo.

Eligibility for this allowance is determined by the Medical

Board or the Appellate Medical Board and the payment is
made directly fo the recipient of the benefit
 21/08/53

Dependant's Benefit

If an employee dies as a result of an employment injury, his

dependants are entitled to this benefit. The full daily rate of
dependants' benefit is 9oo/o of the average assumed daily
wage, subject to a minimum rate of RMro.oo per day.

How to Claim
/A\
il;;;";;
certified ";;;,;
;;,;;s?";; ;; ;;;;;
copies of the following doEuments
;; ";;
. Death Certificate
. Post-mortem Report (if any)
. Birth Certificates of all the children
. Marriage Certificate
. Widow's ldentity Card (if relevant)

How to Claim

. If there is no widow, widower or an eligible child, the

claimant should submit Borang z4 (Claim Form) and
certified copies of the following documents
. Birth Certificate ofthe deceased
. Birth Certificate of all the younger brothers and sisters where
applicable
' ldentify Card of parents or guardian or grandparents (if
relevant)
' Death Certificate
. Statement of dependency

10
 21t08t53

Funeral Benefit

. An amount of RMr,5oo will be paid if an employee dies as a

result of an employment injury or while receiving
disablement benefit.
. Payments will be made to the eligible next of kin. lf there are
no next of kin, the benefit will be paid to the person who
incurred the funeral expenditure.
. The maximum amount for the benefit is the actual amount
incurred or Mfu,5oo whichever is lower.

How to claim

.
@
The claimant should fill-up :-
. Borang z6 (Claim Form) and return it to the SOCSO Local
Office together with a certified copy of the Death Certificate

Rehabilitation Benefit

. Facilities for vocational and physical rehabilitation are

provided free by SOCSO to an employee who suffers from
permanent disablement.
. Physical rehabilitation includes physiotherapy, occupational
theraov. reconstructive surqerv, as well as the suoolv of
artifiiilj limps such as artificiii leg, hand, eye aid dentures
and other prosthetic appliances such as wheelchairs,
crutches, hearing aids, spectacles, calipers and orthopedics
shoes, includinglheir repair and replacement.

11
 21/08/53

Rehabilitation Benefit

. An employee who is suffering from permanent disablement

and who is unable to find a suitable job due to his
disablement, can a.ppllto undergovocational training in
courses such as radio/TV repairs, electrical wiring, mital
trade, repairs of refrigerator and air-conditioner, plumbing,
tailoring, fyping and secretarial work.
. All expenses incurred for the purpose ofvocational and
physical rehabilitation will be borne by SOCSO based on
rates and conditions determined by SOCSO.

Invalidiry Pension Scheme Protection

This scheme p.rovides z4 hours coverage to an employee

against invalidity or death due to any cause not connected
with his employment.
. Invalidity is defined as a serious disablement or morbid
condition of a permanent nature that is either incurable or
not iikely to be cured, as a result of which an employee is
unable to earn at least r/3 of what a normally able pLrson
could earn.
. Chronic ailments or diseases that could be considered for
invalidity are heart attack, renal or kidney failure, cancer,
mental illness, chronic asthma and other similar conditions.

Benefits of Invalidity Pension Scheme

. This scheme provides z4 hours coverage to an employee

against invalidiry or death due to any cause not connecred
with his employment.
' Invalidity is defined as a serious disablement or morbid
condition of a permanent nature that is either incurable or
not likely to be cured, as a result of which an employee is
unable to earn at least r/3 of what a normally able person
could earn.
. Chronic ailments or diseases that could be considered for
invalidity are heart aftack, renal or kidney failure, cancer,
mental illness, chronic asthma and other similar conditions

12
 21t08t53

Qualifying Conditions

"";;;;.;;il; ;"",9-
of invalidiry is received by SOCSO
;il;; ;;; ;;;.;
z. In the event he has completed 55 years at the time the
notice of invalidiw is received the employee has to orove
that the invalidity'occurred before 55 yeais and he iiad
ceased employment at that time.
3 ls certified as an invalid by a Medical Board or Appellate
Medical Board
4. Has fulfilled the contribution qualifying conditions.
Monthly contributions for at least zi mbnths within a
period.of 4o consecutive months preceding to the
lnvaltdlry.

8\' lof rnrprnIr.n. l0 I ()

&
Education Benefit

. This benefit is in the form of a education loan given ro

dependant children who are in receipt of a monthly benefit
for :-
- Dependants Benefit
- Survivor's Pension or children of an employee who is in
receipt of a monthly benefit for :-
+ Perrnanent Disablement or lnvalidity Pension

Conditions for Eligibiliry

. lJepenOant chlldren oI an employee recelvlnE lnvallolr]

iving lnvalidiry
Pension or periodic permanent disablem,ent ent who are below
be u r

years of age and unrirarried at the time of the application

or
. Dependant children of an insured person, who has died as a
result of an emolovment iniurv or while receivinq invaliditv
pension or befdre ieachingige 55 and who fulfills the
contribution qualifying conditions, should be below 2r years
of age and unmarri6d. Tf the child exceeds age zr and is '
receiving a monthly benefit and is continuing his education
in an institution of higher learning and is unmarried at the
time of the application;

12
IJ
 21/08/53

W Conditions&r Eligibiliry
--{@)
. Has been offered a place andI6s registered in anv universiw
g_._:g:i l.-g: t:,tY:o,
y' :Y,,,:F. Loca I rilslrluuull
Insti tuti on ul
of r]lgner
H ifh er Learnln_g
Learn i n g ilnclucll
ncl u d i ny'
lnstltutton"Lthat has a twinning program on condition the
degree is completed locally, wTrich Is resistered ;iih ii;-
Ministry of Education, to icquire a degiee, diploma or a
certificate which is awarded by the Nalional Vocational
Training Council, Ministry of Human Resources;
. H11 no1 been given any other scholarship or loan by any other
authority;
. The family finances are insufficient to support the cost of the
education

14