Malaysia Labor Laws

The Malaysian labour market faces unprecedented challenges and opportunities. The gig economy continues to expand, remote and hybrid work arrangements have become normalized, and artificial intelligence threatens to displace certain job categories. Simultaneously, new protective legislation has emerged to address these transformations.

Contributing Advisor

Quinn Lu

Senior Associate, International Business Advisory

For employers, it represents a strategic investment in organizational reputation, operational continuity, and employee retention.

For employees, awareness of labour rights provides essential protection against exploitation and unfair practices.

Non-compliance exposes employers to substantial financial penalties, ranging from RM 10,000 to RM 50,000 for first-time offences, with potential imprisonment for repeat violations. Beyond financial consequences, breaches of employment law can result in costly litigation, reputational damage, and loss of talented workforce members.

Recent amendments to Malaysia's Employment Act 1955—particularly those effective from January 1, 2023—have expanded employee protections while introducing stricter obligations for employers. These changes include:

• Extended maternity leave;
• Introduction of paternity leave;
• Mandatory flexible work arrangement provisions; and,
• Strengthened sexual harassment protections.

Additionally, amendments to the Occupational Safety and Health Act 1994 have expanded employer liability and introduced new duties regarding workplace risk assessments.

Core legal framework of employment in Malaysia

Malaysia's employment law framework comprises several interconnected statutes and regulations that collectively govern the employment relationship, worker protection, and dispute resolution mechanisms.

Employment contracts in Malaysia

Malaysia requires employment contracts exceeding one month's duration to be documented in writing, containing essential provisions that clearly define the employment relationship. While verbal contracts remain legally binding under specific circumstances, written documentation provides crucial clarity for both parties and serves as compelling evidence in dispute resolution proceedings.

A legally compliant employment contract must include the following components:

• The contract must clearly identify the employer (including business structure and registration details) and the employee (full name, identification number, and contact information).
• The contract must specify the employee's job title and primary responsibilities, enabling clarity regarding scope of duties and performance expectations.
• The contract must explicitly state the basic salary (in Malaysian Ringgit), payment frequency (typically monthly), and payment method. Additionally, it should enumerate all benefits, allowances, and discretionary bonuses (distinguishing these from guaranteed compensation).
• The contract must specify standard daily and weekly working hours, rest days, and overtime arrangements. For shift workers or those with non-standard schedules, specific hours and rotation patterns should be documented.
• The contract should outline annual leave, sick leave, maternity/paternity leave, public holidays, and any company-specific leave policies that exceed statutory minimums.
• The contract must clearly articulate notice periods, grounds for dismissal, and procedures for contract termination. These provisions must comply with statutory minimums but may provide enhanced protections.
• If applicable, the contract should specify the probation period (typically 3-6 months), during which performance expectations and evaluation mechanisms are clearly outlined.

Probation period laws

Malaysian law permits probation periods, typically ranging from three to six months, though probation duration may be extended based on job complexity and performance factors. During probation, employees remain entitled to statutory benefits, including leave entitlements, statutory contributions, and minimum wage protections. Employers may not unilaterally reduce benefits or compensation during probation.

Best practice dictates clear documentation of probation objectives, including specific performance metrics, expected competencies, and evaluation schedules. Regular feedback and coaching during probation enhance employee success and provide documentation supporting termination decisions if performance proves inadequate.

Restrictive clauses and confidentiality agreements

Employment contracts frequently include restrictive covenants addressing non-competition, non-solicitation, and confidentiality. Malaysian courts generally enforce reasonable restrictive clauses protecting legitimate business interests, including trade secrets, client relationships, and confidential information. However, restrictions must be reasonable in temporal scope, geographic limitation, and scope of restricted activity. Overly broad or indefinite restrictions may be deemed unenforceable.

Confidentiality provisions must specifically identify confidential information categories and impose reasonable obligations on employees to maintain secrecy during and after employment. These clauses must not conflict with statutory rights (e.g., union participation or legitimate whistleblowing activities).

Types of employment contracts

Wages, benefits, and deductions

Effective February 1st, 2025, Malaysia established a minimum monthly wage of RM 1,700 (US$ 405) for employers with five or more employees and those engaged in professional activities (MASCO employers), regardless of staff size. This rate represents a 13.3 percent increase from the previous RM 1,500 (US$ 357) minimum wage. Smaller businesses with fewer than five employees enjoyed a six-month grace period, extending until August 1, 2025, when the RM 1,700 (US$ 405) minimum becomes mandatory across all sectors.

The minimum wage applies to both full-time and part-time employees, local and foreign workers. Notably, domestic workers remain exempt from minimum wage requirements.

For daily and hourly calculations, the minimum wage translates as follows based on working weeks:

• 6-day work week: RM 65.38 (US$ 15.6) per day, RM 8.72 (US$ 2) per hour.
• 5-day work week: RM 78.46 (US$ 18.6) per day, RM 10.15 (US$ 2.4) per hour.
• 4-day work week: RM 98.08 (US$ 23) per day, RM 12.69 (US$ 3) per hour.

Employers must review salary structures to ensure no employee receives a basic salary below the established minimum. Bonuses, commissions, and performance-based payments may supplement but not replace minimum wage compliance.

Payment frequency and methods

The Employment Act 1955 requires employers to pay all earned wages within seven days after the end of each wage period, which may not exceed one month, and generally mandates payment via direct deposit into employee-designated bank accounts. Cash or cheque payments are permitted only upon written employee request and Director General approval, subject to withdrawal with notice. Wages for work on rest days or public holidays must be paid by the end of the next wage period, and failure to comply constitutes a breach of the Act and attracts penalties.

Overtime calculation and exemptions

Employees earning RM 4,000 (US$ 950) or below monthly or those engaged in manual labour—regardless of salary—are entitled to overtime compensation for work exceeding normal hours. The standard working week comprises 45 hours, distributed across no more than 8 hours daily and spread across no more than 10 hours. Overtime rates are calculated as follows:

• Regular workdays: 1.5 times the hourly rate
• Rest days: 2 times the hourly rate
• Public holidays: 3 times the hourly rate

Maximum overtime cannot exceed 104 hours monthly, with daily work (including overtime) capped at 12 hours. Employers may petition the Director General for exceptions to overtime limits under circumstances involving special business requirements.

Notably, employees earning above RM 4,000 (US$950) monthly are not automatically entitled to overtime unless specifically provided in employment contracts. Employers should clearly document overtime provisions for all employees, specifying whether overtime is available, discretionary, or mandatory.

Allowable deductions

The Employment Act 1955 establishes strict limitations on wage deductions, permitted only in specific circumstances:

Payslip requirements

Employers must provide detailed payslips to each employee no later than the wage payment date. Payslips must specify:

• Employee and employer identification;
• Wage period covered;
• Gross wages;
• Itemized deductions (EPF, SOCSO, EIS, tax, and others);
• Net payment amount; and,
• Remaining annual leave balance.

Clear, transparent payslips facilitate employee understanding of compensation and deductions, reducing disputes and demonstrating the employer good faith.

Working hours, breaks, and overtime rules in Malaysia

Malaysian employment law caps standard working hours at 45 hours per week, subject to daily and scheduling limits under the Employment Act 1955, and requires employees to receive at least one rest day weekly or a minimum of 30 consecutive hours of rest for shift workers. Employers must designate rest days in advance through rosters or notices. The Employment Amendment Act 2022 further allows employees to request flexible working arrangements, with employers required to respond in writing within 60 days, either approving the request or providing business-based reasons for refusal.

Overtime pay rates and maximum limits

Overtime compensation applies when employees work beyond standard daily (8 hours) or weekly (45 hours) thresholds. Overtime rates depend on the day worked: 1.5 times hourly wages on regular workdays, 2 times on rest days, and 3 times on public holidays. Maximum permissible overtime cannot exceed 104 hours monthly, with daily totals (including overtime) capped at 12 hours.

Notably, overtime performed on rest days or public holidays is not counted toward the 104-hour monthly limit; these calculations address compensation rather than aggregation for overtime hours.

Night work and shift regulations

Night work (work between 10 PM and 5 AM) is generally permitted but may trigger enhanced protections depending on the specific sector and role. Shift workers—employees engaged in continuously operating work requiring multiple-shift coverage by different personnel—face different working hour calculations. Rather than the standard 8-hour daily cap, shift workers may work beyond 8 hours provided that average weekly hours over any three-week period do not exceed 45 hours.

Shift work arrangements must be clearly documented in employment contracts, specifying shift schedules, rotation patterns, and compensation provisions. Employers requiring shift work outside standard arrangements should obtain Director General approval for specialized work schedules.

Rest breaks, mealtimes, and work intervals

Employees cannot be required to work more than five consecutive hours without a minimum 30-minute break. These break periods interrupt the continuity of work, allowing employees to rest, consume meals, and attend personal needs. Employers must ensure adequate break provisions, particularly for employees engaged in physically demanding or mentally intensive work.

Additionally, employees in shift work or roles with non-standard schedules require proportionate break provisions ensuring reasonable rest and recovery opportunities. Documentation of break schedules within workplace policies ensures compliance and prevents disputes.

Flexible work arrangements (Post-2022 Amendments)

The Employment Amendment Act 2022, effective January 1, 2023, grants employees in organizations with more than 10 employees a statutory right to request flexible working arrangements. Requests must be made in writing, and employers must respond within 60 days with approval or specific business-related reasons for refusal, as arbitrary denials are not permitted. Approved arrangements must be formally documented, and employees are protected from termination or adverse treatment for making such requests, reflecting a broader shift toward workplace flexibility and work-life balance.

Leave entitlements in Malaysia

Annual leave by tenure

Annual leave entitlements accrue based on continuous service duration with the same employer:

• Less than 2 years of service: 8 days paid annual leave per 12-month service period.
• 2-5 years of service: 12 days paid annual leave per 12-month service period.
• 5 or more years of service: 16 days paid annual leave per 12-month service period.

For employees not completing 12 months of continuous service during the year of contract termination, annual leave entitles them to compensation calculated proportionally based on completed months.

Annual leave must be taken within 12 months of accrual; failure to utilize accrued leave results in forfeiture of those days. However, upon employee request or employer consent, employers may provide cash compensation in lieu of leave, though this arrangement remains subject to operational considerations and collective agreement provisions.

Public holidays and substitution rules

Malaysian employees are entitled to 11 paid public holidays annually. Five holidays are mandatory nationwide:

• National Day;
• Yang di-Pertuan Agong's Birthday;
• State Ruler or Federal Territory Day;
• Workers' Day; and,
• Malaysia Day.

Employers must grant six additional gazetted public holidays, which they may designate annually by notice.

If public holidays fall on rest days, substitute paid holidays must be provided on the next working day. If a public holiday falls during annual leave or sick leave periods, employers must grant an additional paid day in substitution.

Sick leave and hospitalization leave

Employees are entitled to paid sick leave upon medical examination by an employer-appointed registered medical practitioner or, alternatively, by other registered medical practitioners or medical officers. Sick leave entitlements depend on service tenure and hospitalization requirements:

For employees without hospitalization requirements:

• Less than 2 years of service: 14 days annually.
• 2-5 years of service: 18 days annually.
• 5 or more years of service: 22 days annually.
• For employees requiring hospitalization (as certified by medical practitioners): Up to 60 days annually, regardless of tenure.

Notably, employees continuing to receive monthly wages without reduction for sick leave days are deemed to have received sick leave benefits. Employees must notify employers of sick leave within 48 hours of illness commencement or risk the absence being classified as unauthorized.

Maternity and paternity leave

Maternity Leave: The Employment Amendment Act 2022 significantly expanded maternity protections. Female employees are now entitled to 98 consecutive days of paid maternity leave (increased from the previous 60 days) comprising the "eligible period." To qualify, female employees must satisfy two conditions:

• Employment by the same employer for at least 90 days during the nine months immediately preceding childbirth.
• Employment by the employer at any time during the four months immediately preceding childbirth.

Maternity leave may commence up to 30 days before the expected confinement date, as certified by medical examination. Employers must continue full salary payments during maternity leave. Notably, the maternity leave entitlement does not apply to female employees with five or more surviving children.

Employers are prohibited from terminating pregnant employees or those on maternity leave except for reasons unrelated to pregnancy (proven misconduct, redundancy) where the employer can demonstrate the termination is based on legitimate grounds, not pregnancy status.

Paternity Leave: Married male employees became eligible for paid paternity leave effective January 1, 2023. Seven consecutive days of paid paternity leave are available for each confinement, limited to five confinements maximum regardless of the number of spouses. To qualify, male employees must satisfy three conditions:

• Legal marriage to the child's mother.
• Employment by the same employer for at least 12 months immediately preceding the leave commencement.
• Notification to the employer of spouse's pregnancy at least 30 days before expected confinement or as soon as possible after birth.

Marriage, study, and emergency leave

The Employment Act does not mandate specific marriage, study, or emergency leave entitlements. These categories typically fall within company discretion or collective agreement provisions. However, employers are encouraged to establish reasonable leave policies addressing these personal circumstances, as doing so enhances employee satisfaction and demonstrates organizational values supporting work-life balance.

Unpaid leave rules and approval procedures

Employees may request unpaid leave for personal circumstances beyond statutory categories. Granting unpaid leave remains within employer discretion, though reasonableness and fairness should guide decision-making. Unpaid leave periods typically do not count toward continuous service calculations for tenure-dependent benefits unless collective agreements specify otherwise.

Termination, dismissal, and redundancy

The Employment Act 1955 establishes notice period minimums based on continuous service duration:

• Less than 2 years of service: 4 weeks' notice from either party.
• 2-5 years of service: 6 weeks' notice from either party.
• 5 or more years of service: 8 weeks' notice from either party.

These notice periods apply equally to employer termination and employee resignation, unless employment contracts specify longer notice periods (which are enforceable). Alternatively, either party may terminate without notice by providing indemnity equivalent to wages during the notice period.

For redundancy situations, notice period requirements remain consistent; however, additional compensation obligations arise as detailed below.

Grounds for termination

Valid termination grounds include:

• Conduct inconsistent with fulfilment of express or implied employment conditions. Misconduct must be established through fair inquiry, providing the employee opportunity to respond.
• Continuing inability to meet performance standards despite reasonable opportunity for improvement and training support.
• Elimination of positions due to business contraction, automation, or restructuring. Redundancy must be genuine; employers cannot use redundancy as a pretext for removing unwanted employees.
• Violation of material employment terms (continuous unauthorized absence exceeding two working days without reasonable explanation).
• Inability to perform employment duties due to illness or disability, provided reasonable accommodation attempts have been exhausted.
• Cessation of business operations rendering all or specified positions unnecessary.

Misconduct vs. poor performance

Termination for misconduct requires adherence to fair inquiry procedures. Employers must:

• Conduct written notice of allegations to the employee.
• Permit the employee to respond to allegations (called a "domestic inquiry").
• Provide reasonable opportunity for the employee to present their case.
• Ensure impartiality of the inquiry process.
• Document findings and disciplinary decisions.
• Permit proportionate penalties (warnings, suspension, demotion, or dismissal depending on severity).

Minor misconduct offences typically warrant progressive discipline (warnings, suspension up to two weeks) before termination. Serious misconduct (theft, violence, dishonesty) may justify immediate dismissal without notice.

Poor performance terminations require documentation of performance deficiencies, clear communication of expectations, reasonable opportunity for improvement (typically one to three months), and evidence of training support or coaching. Termination without evidence of improvement attempts may be challenged as unfair dismissal.

Retrenchment and redundancy compensation

When termination results from redundancy, employers must provide severance compensation based on continuous service:

• Less than 2 years of service: 10 days' wages per year of service.
• 2-5 years of service: 15 days' wages per year of service.
• 5 or more years of service: 20 days' wages per year of service.

These statutory minimums apply unless employment contracts provide superior benefits. The Code of Conduct for Industrial Harmony recommends employer implementation of best practices including early notification, voluntary retrenchment schemes, job search assistance, and phased termination schedules.

The Industrial Relations Act 1967 permits employees to challenge redundancy terminations as unfair dismissal. The burden rests with employers to demonstrate genuine redundancy and fair redundancy handling. If the Industrial Court determines redundancy was not genuine or procedures were unfair, the court may order reinstatement or award compensation up to 24 months' wages from the dismissal date.

Wrongful dismissal claims and industrial court process

• Employees claiming unfair dismissal must lodge Form P1 (complaint) with the Industrial Relations Department within 60 days of dismissal, attaching supporting documentation (identification, termination letters, evidence of misconduct allegations).
• The IRD schedules a conciliation meeting between the employer and employee. Legal representation is not permitted at this stage. If resolution is reached, a Memorandum of Agreement is signed and the case concludes.
• If conciliation fails, the case is referred to the Industrial Court. Both parties submit formal pleadings (Statement of Case, Statement in Reply, Rejoinder, and supporting documents). Legal representation is available at this stage.
• The hearing proceeds similar to a civil trial, with both parties presenting evidence and witnesses. The Industrial Court determines whether misconduct was proven and, if so, whether proven misconduct constitutes just cause for dismissal.
• If the court finds unfair dismissal, it may order reinstatement to the former position or award compensation in lieu of reinstatement (determined based on factors including length of service, employee age, and employment prospects). Back wages are capped at 24 months from the dismissal date.
• Either party may appeal the Industrial Court decision to the High Court within 14 days on points of law.

Upon employee resignation, employers must pay all final wages (including accrued annual leave compensation) within three days if the employee terminated without notice or within one day if the employee fulfilled notice requirements. Employers may deduct only lawful amounts (overpayments, advance recoveries, or directed deductions) from final payments.

Employee rights and employer obligations

Equal treatment and anti-discrimination laws

Malaysian employment law and constitutional principles prohibit discrimination based on factors such as nationality, ethnicity, gender, religion, age, or disability in employment decisions, requiring employers to apply merit-based and transparent practices in recruitment, compensation, promotion, and termination. In addition, Part XVA of the Employment Act 1955 prohibits sexual harassment in the workplace in all forms, with protections applying to all employees regardless of salary level.

Workplace harassment policies

Employers face statutory obligations to inquire into sexual harassment complaints. Upon receiving a complaint, employers must conduct thorough investigations within 30 days, informing complainants of findings and, if harassment is substantiated, implementing appropriate disciplinary action. Employers failing to investigate complaints or provide written refusal explanations (with reasons) face substantial penalties up to RM 50,000 (increased from RM 10,000 in the 2022 amendments).

Health and safety obligations under OSHA

The Occupational Safety and Health Act 1994 (Act 514) impose broad duties on employers to maintain safe, healthy workplaces. Recent amendments have expanded the Act's scope to all workplaces nationwide, including public sector and statutory authority operations.

Core Employer Obligations:

• Maintain safe systems of work eliminating or controlling hazards at reasonably practicable levels.
• Ensure safe plant and equipment, providing maintenance and safe operational procedures.
• Provide information, instruction, training, and supervision regarding workplace hazards and safety procedures.
• Maintain safe workplace environments with adequate facilities for employee welfare.
• Conduct risk assessments identifying hazards and implementing control measures.
• Establish Safety and Health Committees (mandatory for organizations with 40+ employees) facilitating employee participation in safety management.
• Develop emergency procedures for workplace incidents and disasters.

Employers failing to fulfill these duties face penalties up to RM 50,000 and potential imprisonment. Directors and officers bear joint and several liability for organizational breaches unless they prove non-culpability. Recent amendments also empower employees to remove themselves from imminent danger situations without forfeiting wages or employment security.

Foreign worker and expatriate employment rules

Malaysia distinguishes between foreign workers (non-citizens employed in manual and skilled roles) and expatriates (typically employed in senior technical and managerial positions). Foreign worker employment requires work permits issued by the Immigration Department, with quotas varying by sector and skill level.

Social Protection: EPF, SOCSO, EIS Coverage

Child labour and gig economy

Minimum working age and conditions

The Children and Young Persons Employment Act 1966 (Act 350) establish minimum age requirements for employment. Generally, children under 15 years are prohibited from employment. Children aged 15-16 may be employed in non-hazardous occupations with restrictions on working hours, night work, and hazardous substances. Specific provisions apply to agricultural employment and certain light industries.

Employers engaging young workers must ensure working hours do not exceed applicable limits, provide appropriate supervision, and maintain safe working conditions. Certificates of age may be required to verify minimum age compliance.

Gig and platform worker classification (Legal Grey Zones)

Historically, gig economy workers (ride-share drivers, food delivery personnel, freelance workers) occupied a legal grey zone, classified as independent contractors exempt from Employment Act coverage and statutory protections. This arrangement benefited platforms through operational flexibility while depriving workers of income security, health insurance, and dispute resolution access.

On August 28, 2025, Dewan Rakyat passed landmark legislation formally recognizing gig workers as a distinct employment category. The Bill introduces mandatory service agreements documenting compensation rates, working arrangements, benefits, and termination procedures. Platforms are prohibited from unilateral rate changes, arbitrary account deactivation, and restrictions on multi-platform work.

Gig workers gain access to dispute resolution through a three-tier mechanism:

• Internal company grievance procedures,
• Mediation, and
• Binding adjudication by the newly established gig workers tribunal.

The tribunal provides swift, low-cost resolution with authority to order reinstatement or compensation.

Additionally, gig workers now access social security through SOCSO, with platform companies bearing contribution obligations for occupational safety coverage. A tripartite advisory council (with equal employer and worker representation) negotiates minimum remuneration standards and system reforms.

This legislative framework represents a paradigm shift, balancing platform flexibility with worker protection. It establishes Malaysia's "hybrid model" positioning between European regulation (treating platform workers as employees) and Singapore's social security extension approach.

Dispute resolution: What happens when conflict arises

Internal grievance procedures

Most employment disputes can be resolved through fair, transparent internal grievance mechanisms. Best practice requires employers to establish clear grievance procedures enabling employees to raise concerns (compensation disputes, working conditions complaints, alleged misconduct allegations) to designated management representatives.

Effective grievance procedures should:

• Specify grievance channels (HR department, employee relations managers, designated complaint recipients)
• Establish timeframes for filing grievances (typically within 30 days of the triggering incident)
• Outline investigation procedures ensuring impartiality and fair inquiry
• Provide appeal rights permitting employees to escalate unresolved concerns
• Protect complainants from retaliation or adverse employment treatment
• Document proceedings creating records supporting dispute resolution

Internal grievance resolution reduces external dispute escalation, preserves employment relationships, and demonstrates employer commitment to fair treatment.

Labour department and industrial court process

When internal resolution fails, employees may escalate complaints to the Labour Department (Department of Industrial Relations, IRD). The IRD administers conciliation processes attempting to resolve disputes through negotiation.

• Employees submit Form P1 (complaint) to the nearest IRD office within 60 days of dismissal (for wrongful dismissal claims) or other dispute incidents. Supporting documentation includes identification copies and evidence substantiating the claim.
• The IRD schedules conciliation meetings (typically within 10-15 days) where employer and employee meet with an IRD officer attempting resolution. Legal representation is not permitted at this stage, encouraging informal discussion and settlement.
• If conciliation fails, the IRD refers the case to the Industrial Court. The court exercises jurisdiction over unfair dismissal claims, redundancy disputes, breach of collective agreements, and breach of contract claims. The Industrial Court operates with less formal procedure than civil courts, though legal representation remains available.
• Both parties submit formal pleadings, exchange evidence, and present oral arguments. The Industrial Court judge determines the substantive dispute, applying Employment Act provisions and Industrial Relations Act principles. Court awards typically address reinstatement orders, back wage compensation (capped at 24 months), and damages.

Mediation and arbitration options

Beyond statutory processes, parties may pursue mediation or arbitration through private providers. Mediation—facilitation by neutral third parties assisting negotiated resolution—remains entirely confidential and non-binding, preserving settlement flexibility. Arbitration—adjudication by private arbitrators issuing binding awards—provides faster, more confidential resolution than court processes, though arbitrator costs may exceed statutory proceedings.

Collective agreements frequently establish private dispute resolution procedures (grievance mechanisms and arbitration clauses) addressing disputes between employers and unions. These contractual procedures often supersede statutory processes for covered disputes.

Tips for Employers to Prevent Disputes

• Maintain detailed records of employment decisions, performance evaluations, disciplinary actions, and communications. This documentation proves invaluable in defending termination decisions or dispute claims.
• Establish clear channels for management-employee dialogue, addressing concerns before escalation. Regular feedback and coaching prevent performance disputes.
• Adhere scrupulously to fair inquiry procedures, providing employees opportunity to respond to serious allegations. Procedural fairness demonstrates good faith and reduces successful wrongful dismissal claims.
• Implement robust payroll, leave tracking, and statutory contribution systems ensuring legal compliance. Compliance failures generate preventable disputes.
• Train managers and HR personnel on employment law requirements, workplace policies, and fair treatment principles. Knowledgeable management reduces inadvertent legal violations.
• Establish comprehensive employment policies addressing leave, grievance procedures, anti-harassment measures, and conduct expectations. Clear policies provide consistent guidance and reduce disputes arising from unclear expectations.

Key penalties for non-compliance

Violations of Malaysian labour laws trigger substantial penalties: