CHAPTER 9

EMPLOYEES RIGHTS AND DISCIPLINE

HAK DAN DISIPLIN PEKERJA

Learning Outcomes
At the end of the chapter, students are expected to: 1. define rights and responsibilities of employees and employers. 2. explain the concept of misconduct and employees discipline. 3. explain the procedures and disciplinary action. 4. define the concept of domestic/internal inquiry.
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Rights and Responsibilities of Employees (Hak dan Tanggungjawab

Pekerja)

Rights and responsibilities of employees that are commonly discussed: Employees rights based on laws/acts
Employment Act 1955 Industrial Relations Act 1967

Employees rights based on contract

Salary, working hours, benefits, etc.

Rights and Responsibilities of Employer (Hak dan Tanggungjawab

Majikan)

Employers rights is also known as management prerogative (hak istimewa pengurusan)

Relocating employees to other locations or departments . Promotion. Introduction of new technology at the workplace. Employees discipline. Restructuring of organizational size and employees layoff. Compensation of foreign workers.

Responsibilities of Employers
To provide a safe workplace. To establish good relationship with employees.
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Termination of Employment Contract (Penamatan Kontrak Pekerjaan)

Either party, employees or employers can initiate the termination of contract of employment. By employees Resignation: Individual reasons (optional)
Relocation Optional Retirement

By employers- Involuntary
Compulsory Retirement Downsizing Termination due to misconduct

Retirement
(Persaraan)

Public employees 58/60 years of age. Private employees depending on terms of the employment contract. If not stated in the contract, employers have no right to ask their employees to resign when they reach certain age.

Retrenchment
(Pengurangan Pekerja)

Procedures for retrenchment: Consult the union and inform the workforce. Choose the methods and whom to retrench. Inform the Labour Department. Provide the outplacement service. Provide retrenchment benefits.

It is considered to be the employers responsibility to provide retrenchment benefits to employees. The quantum of benefit depends upon the workers length of service. Who are entitled?: All employees covered by the Employment Act 1955. All employees covered by a collective agreement with a retrenchment benefit provision. Any employee with a provision for retrenchment benefit written into his 8 contract of employment.

Retrenchment Benefit
(Faedah Pengurangan Pekerja) Length of Service Less than 2 years 2-5 years 5 years and above Benefit 10 days wages for every year of service. 15 days wages for every year of service. 20 days wages for every year of service.

Dismissal
(Pemecatan)

Employers act to end or terminate an employees service due to certain reasons. Reasons for dismissal: Misconduct Constructive dismissal An employer can terminate an employee without prior notice if the reason is due to misconduct (Employment Act 1955).
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Dismissal for Misconduct Can be conducted without prior notice (Employment Act 1955). However, an employer is responsible to conduct an investigation before any dismissal decision is made. Constructive Dismissal An employer acts in a manner which shows that the employer wishes to end the employment contract or breaches the contract and thus, forces an employee to walk out of his job. Legal action can be taken against any 11

Misconduct
(Salah laku)

Misconduct (Salah laku) Misconduct is any behaviour which is in conflict with the employers interests. Minor misconduct (Salah laku minor) Habitual late attendance. Leaving the workplace without permission although for a short while. Using rude language. Inappropriate clothes. Telling inappropriate jokes with sexual innuendos.
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 Major misconduct (Salah laku major) Wilful insubordination or disobedience to any lawful and reasonable order of a superior. Resorting to industrial action or inciting others to resort to industrial action in contravention of the Industrial Relations Act. Being drunk at work, or on drugs at work. Fighting. Refusing to work. Theft. Fraud.
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Employees Discipline
(Disiplin Pekerja)

Discipline: State of employee self-control and orderly conduct. Disciplinary action: Invokes penalty against employee who fails to meet established standards. Every organization needs a fair and just employee disciplinary system. Intent should be to ensure recipient sees disciplinary action as learning process.
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 This disciplinary system is progressive i.e. each time an employee commits a misconduct, he/she will be punished and the penalties will become increasingly severe each time until the ultimate punishment of dismissal is used.

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 Penalties in a Progressive Disciplinary System Oral Warning First written warning Final written warning Suspension without pay Demotion or downgrading Dismissal

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Disciplinary Policies and Procedures

Generally, HR department is responsible to establish disciplinary policies and procedures for an organization. Characteristics of disciplinary policies and procedures: Gain recognition from management. General. Updated from time to time for relevancy. Any changes made should be made known to all employees. Written. Fair, effective and useful. 17

Fairness in disciplinary actions: Penalties should be justifiable to the misconduct: Seriousness of the misconduct. Frequencies of misconduct. Organizational disciplinary practices. Justification to the penalty. Communication of information on the disciplinary processes.
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Guidelines for taking disciplinary action: It should be given in private. It should be expected. Action should be taken by immediate supervisor. It should be immediate. Action should be consistent. It should be progressive.

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Domestic Inquiry
(Siasatan Dalaman)

General objective: To identify and validate whether action commited by an employee is definitely a misconduct. Specifically: To find the truth To validate truth To affirm that the accused action is indeed a misconduct To identify the person who commits the misconduct To identify factors that will lead towards less 20 serious penalty

Two fundamental principles of natural justice: No one should be a judge in their own cause; no person can judge a case in which he or she is a party (nemo debet judex in propria causa). No person should be condemned without a fair hearing in which the accused is given the opportunity to respond to the accusation against him (audi alteram partem). 21

Effective Disciplinary Action

Train the supervisor on when and how to take disciplinary action. Be transparent. Documentation. No delay in disciplinary action. Disciplinary action should be independent of prejudice and not influenced by personal sentiments. Addresses employees wrongful behavior, not employee as a person. Should not be applied haphazardly
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Summary
Employer-empolyee relations should be respected. HR manager have to play the active role in employer-employee relation. HR manager has to handle problem employees. Any disciplinary action must adhere to fairness in order to avoid discrimination on employees. Fair disciplinary penalty is important to the harmoniuos employer-employee relation.
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