Part 1 of this series covered the most commonly cited violations: blocked MC during peak season, unpaid overtime, salary deductions for mistakes, and firing someone for being pregnant.
A lot of Malaysians recognised those situations from their own workplaces, which is both gratifying and depressing.
Part 2 goes deeper.
These are the violations that do not get talked about as often, partly because they are less dramatic and partly because they rely on employees not knowing that the law says something specific. Withholding payslips.
Extending probation without limit. Forcing early retirement. Unilateral pay cuts. None of these make the news, but all of them affect real Malaysian employees every day.
As before: this is educational content, not legal advice. For your specific situation, consult a licensed employment lawyer or file directly with JTK. The law is your protection regardless of your salary level, and since January 2023, the Employment Act covers every employee in Peninsular Malaysia regardless of how much they earn.
The 10 things, in detail
#1 “Your probation period has been extended. Again.”
IR Act 1967
The law says probation periods are not regulated by statute in Malaysia, meaning employers do have discretion to set the length. However, that discretion has limits. The probation period and any extension terms must be clearly stated in your employment contract. An employer cannot indefinitely extend probation without limit or contractual basis. If the terms of your probation are not in writing, or if extensions keep happening beyond what was agreed, this can constitute constructive dismissal under the Industrial Relations Act 1967.
Critically: a probationer has the same legal rights as a confirmed employee. They are entitled to minimum wage, public holidays, overtime rates, annual leave, and sick leave. And they cannot be dismissed without just cause and excuse — they can file an unfair dismissal claim if they believe their non-confirmation was unreasonable.
#2 “No payslip — we pay cash lah.”
Section 25A EA 1955
Section 25A of the Employment Act requires every employer to provide a written statement of wages (payslip) to every employee at the time of payment of wages or within three days before or after. This payslip must include: the employee’s name, the period of wages, the total wages earned, every allowance, every deduction and the reasons for it, and the net wages paid. This is not optional. Cash payment does not exempt an employer from issuing a payslip. If you are not receiving a payslip, your employer is in violation of the Act.
Why this matters: without a payslip, you cannot verify that EPF, SOCSO, and LHDN (MTD) deductions are being made correctly and remitted. Employers who pocket these deductions without remitting them to the relevant agencies commit a serious offence. Your payslip is your audit trail.
#3 “You have to retire. Company policy.”
MRAA 2012
The Minimum Retirement Age Act 2012 sets the minimum retirement age at 60 years for all employees in the private sector in Peninsular Malaysia. An employer cannot compel an employee to retire before they reach 60. A “company policy” that sets retirement at 55 or 58 does not override this statutory minimum. Forcing an employee to retire before 60 without their written consent is treated as dismissal without just cause and can be challenged at the Industrial Court.
An employee may agree in writing to retire before 60, and some contracts contain such provisions. But the agreement must be genuinely voluntary and in writing. A verbal instruction that “company policy” requires early retirement is not a lawful basis for termination.
#4 “Your resignation is not accepted.”
Contract Law / EA 1955
A resignation cannot be rejected. Under Malaysian employment law, once an employee submits a valid resignation with the correct notice period — or with an offer to pay salary in lieu of notice — the employment contract is terminated at the end of that period regardless of whether the employer agrees with the decision. An employer has no legal power to refuse a resignation, demand the employee “un-resign,” or threaten consequences for leaving. The employment relationship is not a one-way door. Just as an employer can terminate with notice, an employee can resign with notice. Neither party can force the other to continue a contract against their will.
What the employer can legitimately do: hold you to serving your contractual notice period, or require you to pay salary in lieu if you want to leave early. What they cannot do: refuse your resignation outright, threaten disciplinary action for resigning, or claim you are bound to stay indefinitely. If an employer retaliates against you for resigning — demotes you, freezes your access, or withholds salary — document everything and contact JTK or the Industrial Relations Department immediately.
#5 “We are cutting your salary. Effective next month.”
Contract Law / IR Act
Your agreed salary is a term of your employment contract. Varying a fundamental term of a contract without the other party’s consent is a breach of contract. An employer cannot unilaterally reduce your salary without your written agreement. If they do, you have two options: accept the new terms (which constitutes a variation of contract, and you should get it in writing if so), or treat the unilateral reduction as a repudiatory breach of contract and resign, which may entitle you to claim constructive dismissal at the Industrial Court.
This is one of the most common forms of constructive dismissal in Malaysian employment law. An employer facing financial difficulty may genuinely need to reduce payroll costs, but the legally correct path is to discuss, obtain written consent, or conduct a formal retrenchment exercise — not to impose unilateral cuts and wait for employees to accept them passively.
#6 “104 hours of OT a month is the target.”
Section 60AA EA 1955
Section 60AA of the Employment Act caps total overtime at 104 hours per month. This is the absolute legal ceiling. No employer has the authority to require an employee to work beyond this ceiling regardless of business urgency, client demand, or contractual language. Some employers treat this number as a monthly target rather than a limit. It is not a target. It is the maximum that is legally permissible even with the employee’s consent. Requiring more than 104 hours of OT per month is a criminal offence under the Act.
The 104-hour monthly cap applies to employees earning RM4,000/month and below. For employees above this threshold, the Act’s specific OT payment requirements do not apply, but the 12-hour daily ceiling still does under the general provisions. Check your salary level to know which protections apply to you.
#7 “Sign this NDA. You cannot report anything.”
Whistleblower Protection Act
NDAs can legitimately protect commercial trade secrets, client confidentiality, and business-sensitive information. What they cannot lawfully do is prevent an employee from reporting labour law violations to the relevant authorities. The Whistleblower Protection Act 2010 protects employees who report offences to enforcement agencies. An NDA clause that purports to prevent you from filing a complaint with JTK, the Industrial Relations Department, or PERKESO is unenforceable to that extent. Signing such an NDA does not remove your right to file a complaint, and an employer who punishes you for reporting a genuine labour law violation opens themselves to a separate legal claim.
The protection under the Whistleblower Protection Act applies specifically when you are reporting to a prescribed enforcement agency (such as JTK or PERKESO) in good faith. It does not protect public disclosure (e.g. posting on social media), which is a meaningful distinction.
#8 “You are part-time. No EPF.”
EPF Act 1991
EPF contributions are mandatory for all employees, including part-time workers, regardless of the number of hours worked per week. The EPF Act 1991 does not have a minimum hours threshold. If you are an employee (not a contractor) in the eyes of the law, your employer is required to make EPF contributions on your behalf at the standard employer contribution rate (typically 12 to 13% for Malaysian employees) and deduct your employee contribution (11%) from your wages. An employer who refuses to contribute EPF for part-time workers on the basis of their hours is non-compliant with the EPF Act.
Note: from October 2025, EPF contributions are also mandatory for non-Malaysian employees (excluding domestic workers) at 2% each from employer and employee. This is a new requirement and many employers may not yet be compliant.
#9 “We will blacklist you in the industry if you go to JTK.”
Whistleblower Protection Act 2010
This is one of the most effective intimidation tactics used in Malaysian workplaces precisely because it is so hard to disprove — and because most employees genuinely fear it. The threat of being “blacklisted” is designed to make you abandon your legal right to file a complaint with the Labour Department or other enforcement agencies. Here is the legal reality: threatening an employee for exercising their right to report a labour law violation is itself an offence. The Whistleblower Protection Act 2010 protects employees who report offences to prescribed enforcement agencies (including JTK, PERKESO, and the Industrial Relations Department) in good faith. An employer who retaliates — whether by withholding references, spreading negative information to other employers, or threatening professional consequences — opens themselves to a separate legal claim on top of the original violation.
There is no central “blacklist” database that employers can officially register your name with. What employers can do is give unfavourable references or speak to contacts in the same industry — both of which, if done to punish you for filing a legal complaint, can constitute victimisation. Document any such threat in writing the moment it is made. A WhatsApp message saying “if you go to JTK you will never work in this industry again” is evidence. Keep it. Important: the Whistleblower Act protects reporting to enforcement agencies only — not public social media posts, which carry separate legal considerations.
#10 “Everyone must attend the team dinner. Mandatory.”
Section 60A EA 1955
If attendance at a company event outside normal working hours is genuinely mandatory — meaning your employer has made clear you must attend and your employment would be at risk if you do not — then it can be treated as work under the Employment Act and may entitle you to overtime compensation. The critical legal question is whether attendance is truly optional or whether there is explicit or implicit pressure that makes refusal effectively impossible. Where events are scheduled after hours, attendance is framed as compulsory, and no additional compensation is paid, employees earning RM4,000/month and below may have a valid OT claim for those hours.
In practice, Malaysian employers rarely face claims for this specific situation, but the legal position is clear: if it is mandatory, it is work. And if it is work outside normal hours, and you earn within the OT-eligible threshold, it should be compensated accordingly.
New rights in 2025 that most employees do not know about
Beyond the 10 above, three significant changes in 2025 have expanded employee protections in Malaysia, and many employers are still catching up with compliance.
Minimum wage: RM1,700 for all employers since August 2025
From August 1, 2025, all Malaysian employers regardless of headcount must pay at least RM1,700/month. The previous grace period for employers with fewer than five employees expired. If you are earning below RM1,700/month at any employer (excluding domestic workers), they are in breach of the Minimum Wages Order 2024.
Gig Workers Act 2025 — August 28, 2025
Passed by Dewan Rakyat on August 28, 2025, this landmark legislation formally recognises gig workers (e-hailing, food delivery, freelance platform workers) as a distinct employment category. Platforms must now provide written service agreements, cannot unilaterally change pay rates or deactivate accounts arbitrarily, and gig workers gain access to SOCSO coverage and a dedicated dispute tribunal. If you are an e-hailing driver or delivery rider, your rights significantly expanded in 2025.
EPF for non-Malaysian employees — October 2025
From October 2025, EPF contributions are mandatory for non-Malaysian employees (excluding domestic workers) at 2% each from employer and employee. Employers who have non-Malaysian staff and have not yet updated their payroll to include these contributions are non-compliant. If you are a non-Malaysian employee and your payslip does not show EPF contributions from October 2025 onwards, raise this with your HR department or file with the EPF directly.
Understanding Constructive Dismissal
Several of the items above, like unilateral pay cuts, indefinite probation extension, demotions without cause, can constitute constructive dismissal under Malaysian employment law.
This is a concept that many employees do not know exists, and that many employers deploy inadvertently.
Constructive dismissal occurs when an employer’s conduct fundamentally breaches the employment contract, making it reasonable for the employee to resign and treat themselves as having been dismissed.
It is, in the words of the Malaysian Industrial Court, a breach so serious that it goes to the root of the contract. The employee who leaves as a result is treated in law as having been unfairly dismissed, and can file a representation under Section 20 of the Industrial Relations Act 1967.
The key is that the employee must act promptly after the employer’s breach.
Continuing to work for an extended period after the breach may be construed as acceptance of the new terms. If you believe you are being constructively dismissed, seek legal advice quickly and document everything in writing.
