The Industrial Relations Act 1967's Amendments Has Come Into Effect

Human Resources Minister, Datuk Seri M. Saravanan, announced that the recent amendments to the Industrial Relations Act 1967 (Act 177) has come into force on Jan 1, 2021. These amendments will improve the protection of workers' rights in Malaysia.

Some of the amendments include: 

• The repeal of the HR minister's power to refer representations on dismissal cases to the Industrial Court. The power is now given to the Director-General for Industrial Relations,

• The repeal of discretionary power to refer cases to the Industrial Court without additional filtering,

• The application of the provision of representation on reinstatement (Section 20) can be extended to employees of statutory bodies by order of the HR Minister, after consultations with the statutory body,

• The employee or employer may be represented by any person of their choice, except attorneys, during the conciliation process at the Department of Industrial Relations,

• Trade unions can negotiate about general issues related to the recruitment, exchange, termination of services due to labour surplus, dismissal, reinstatement, and the distribution of tasks.

• The abolishment of punishment for picketing and strikes in line with international labour standards.

Privileges bestowed to the Industrial Court

Through these amendments, the minister said that the Industrial Court has permission to conduct proceedings notwithstanding the death of the worker who made the representation. The Industrial Court also gained permission to order the payment of back wages or compensation in place of reinstatement or both to the deceased worker's next-of-kin.

The Industrial Court may also decrease the amount of money involved without having to adhere to constraints stated in the Second Schedule if a dismissal occurs due to a violation of the right to freedom of union. In such cases, the Industrial Court may charge interest at a rate of or lower than 8% per annum.

The Human Resource Minister also said that any aggrieved parties with the Industrial Court's award could appeal directly to the High Court. Any party that plans an appeal must complete it within 14 days after the receiving of the award.

The authorities will post additional information about the amendments made to the act on the Industrial Relations Department and Human Resources Ministry's official websites soon.

Source: Bernama

Labour group's feedback

The Labour Law Reform Coalition (LLRC) welcomed Human Resources Minister M Saravanan's announcement. According to them, these amendments will improve workers' rights and speed up the justice process. They are a step towards bringing the country's labour legislation in line with international standards.

The group urges the government to continue to improve the protection of workers in Malaysia by tabling and passing amendments to the Employment Act 1955 (The EA) and the Trade Union Act 1959 in Parliament in the first quarter of 2021.

According to LLRC co-chairpersons N Gopal Kishnam and Irene Xavier, the Trade Union Act amendments are necessary because it is interlocked with the Industrial Relations Act. Without these amendments, trade unions will not enjoy the new parameters of freedom of association partially assured under the Industrial Relations amendments.

Meanwhile, Xavier said the government must also amend the EA to enhance basic work conditions such as:

• Legislating non-exploitative working hours, 

• Expanding the salary range that falls under the law's purview, and; 

• Including domestic work as work.

According to her, the EA must also improve the protection of migrant workers to stop labour and rights violations such as inhumane work conditions, lack of access to remedy, and employers withholding passports.

LLRC also urges the government and relevant parties to support the ratification of the International Labour Organization's Convention 190 to stop violence and harassment in the workplace in the next international labour conference in June 2021. 

Sources: Bernama, The Vibes

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