LABOUR COURT

&
INDUSTRIAL
COURT

Labour Court

Under the EA, an employee has the right to bring

certain complaints to the attention of the
Department of Labour
This process is commonly known as labour court
whereby the Labour officers are empowered to hear
the dispute and make a decision

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Jurisdiction

S 69(1) of EA authorises the DG for Labour to:

inquire into and decide any dispute between an employee
and his employer in respect of wages or any other
payments in cash due to such employee under a)
any term of the contract of service between such
employee and his employer;
b)
any of the provisions of this Act or any subsidiary
legislation made thereunder; or
c)
the provisions of the Wages Council Act, 1947 or any
order made thereunder;
and, in pursuance of such decision, may make an order in
the prescribed form for the payment by the employer of
such sum of money as he deems just without limitation
of the amount thereof.
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

S 69B - the powers of the DG under 69(1)(a) shall

extend to employees whose wages per month
exceed RM2000 but does not exceed RM5000.
S 69(3) inquire, confirm or set aside decision
made by employer under s 14(1) & make
consequential orders as necessary.
S 69C decide any claim on the indemnity due to
the employer.
Person who fails to comply with a decision or order
of DG commits an offence & shall be liable on
conviction to a fine not exceeding RM10,000; & if
continue the offence, liable to a daily fine up to
RM100 each day: S 69(4) & 69E.
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Types of Claims

Types of claims heard are

provisions of EA which include:
1. Termination benefits;
2. Maternity benefits;
3. Overtime payments;
4. Sick pay;
5. Annual leave pay;
6. Public holiday pay.

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

relating

to

the

Limitations

DG shall not inquire into, hear, decide or make

any order in respect of any claim, dispute or
purported dispute which, in accordance with the
IRA 1967a) is pending in any inquiry or proceedings under
that Act;
b) has been decided upon by the Minister under
section 20(3) of that Act; or
c) has been referred to. or is pending in any
proceedings before, the Industrial Court

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Appeal

Decisions made by labour officers in the LC may

be appealed to the HCt: s 77.

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Industrial Court

IC was established by the IRA 1967

A highly specialised court that deals only with trade
disputes
Purpose & objective: to provide a peaceful and
unbiased means of settling disputes between
employers & employees

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Functions

To hear and hand down decisions or awards in

industrial disputes referred to it by the Minister
or directly by the parties.
To grant cognisance to the collective agreements
which have been jointly deposited by the
employers/trade union of employers and trade
union of employees.

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Structure (s 21 IRA)

Section 21 of IRA: An IC shall consist of

A President who shall be appointed by the Yang
di-Pertuan Agong; and
A panel of persons representing employers and
a panel of persons representing workmen all of
whom shall be appointed by the Minister.
Before appointing the panels the Minister may
consult
such
organisations
representing
employers and workmen respectively as he
may think fit.

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Structure

Cases where a trade union is involved are heard

by the President/one of the chairmen & a twomember
panel
(representing
employer
&
employee).

For unfair dismissal cases, the President/Chairman

can sit alone [s 22(5)].
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Qualification of President &

Chairman

S 23A (1): seven years preceding the

appointment, he/she has been
an advocate & solicitor within the meaning of
the Legal Profession Act 1976; or
a member of the judicial & legal service of the
Federation; or
of the legal service of a State
All Malayan Estates Staff Union v Rajasegaran &
Ors [2006]4CLJ195

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Proceedings
&
Representation at IC Hearings

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Proceedings

Similar to any court of law but are simplified

The court has the power to call witness and
documents when necessary
Usually, the parties to a dispute are required to
submit a written summary of their arguments,
called pleadings, in advance of the hearing
During the hearing, each party is given the
opportunity to orally present their case, and to
introduce witnesses and documents to prove its
case
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

The president may ask questions of the witnesses

or officer presenting the case
Each party is permitted to cross-examine
witnesses rom the other side
When all arguments are completed, the court
adjourns to make its decision, which will be
written up and is known as an award of the court

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Reference of trade disputes

to the Court s 26

If a trade dispute exists & not resolve, the Minister may

refer it to the Court on the joint request in writing to the
minister by
the trade union of workmen which is the party to the
dispute; or
a trade union of employers which is a party to the
dispute.
The Minister may also, of his own motion or upon
receiving the notification of the DG, refer trade dispute to
the Court if he is satisfies that it is expedient to do so.
In the case of a trade dispute in Government service or
any statutory authority, reference shall not be made
except with the consent of the YDPA or State Authority.
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Awards s 30

The Court shall have power to make an award.

Award must be made without delay and
where practicable within thirty days from
the date of reference to it.
In making its award, the Court shall have regard
to the public interest, the financial
implications and the effect of the award on
the economy of the country, and on the
industry concerned, and also to the probable
effect in related or similar industries.

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Awards

The Court shall act according to equity, good

conscience and the substantial merits of the case
without regard to technicalities and legal form.
Ranjit
Kaur S Gopal Singh V. Hotel
Excelsior (M) Sdn Bhd [2010] 3 CLJ - The ICs
duty to act according to equity, good
conscience & the substantial merits of the case
without regard to technicalities and legal form
under s. 30(5) does not give the IC the
complete freedom to simply ignore the IC Rules
1967 made under the principal Act.
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Awards

In making its award, the Court may take into

consideration the factors specified in the Second
Schedule:
Not exceed 24 months' back wages from the
date of dismissal (based on the last-drawn
salary of the person who has been dismissed
without just cause or excuse);
For probationer, not exceed 12 months' back
wages from the date of dismissal (without just
cause or excuse) based on the last-drawn
salary;
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Awards

If there is post-dismissal earnings, a

percentage of such earnings shall be
deducted from the backwages given;
Any relief given shall not include any
compensation for loss of future earnings; and
Any relief given shall take into account
contributory misconduct of the workman.

Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Effect of an award s 32

Award made shall be binding on a) all parties to the dispute;

b) any successor, assignee or transferee of any
employer or trade union of employers and any
successor to any trade union of workmen
which is a party to the dispute;
c) all
workmen who were employed and
subsequently became employed; and
d) all members of a trade union of employers to
whom the dispute relates.
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM

Reference to the High Court

on a question of law s 33A

On application, within 30 days of the date on which the

award was made, any party to the proceedings may
refer to the High Court a question of law.
Compliance with the award then shall be stayed
pending.
The High Court shall hear and determine the question
referred to it as if the reference were an appeal to the
High Court and may, consequently, confirm, vary,
substitute or quash the award, or make such other order
as it considers just or necessary.
A decision of the High Court shall be final and
conclusive.
Haslinda Mohd Anuar. Senior Lecturer. School of Law. UUM