Part-Time Employment Laws in Malaysia

Definition of Part-Time Employees

Under section 2(1) of the Employment Act 1955 ('the EA'), as amended by the Employment (Amendment) Act 2012, a part-time employee is defined as:

(a) Someone who has entered into an employment contract or contract of service with an employer, where their wages do not exceed RM2,000-00 per month; and

(b) Their average weekly working hours are more than 30% but do not exceed 70% of the normal weekly working hours for a full-time employee in a similar role with the same employer. If the normal weekly working hours for a full-time employee cannot be determined, it is considered to be 8 hours in a day or 48 hours in a week.

However, it's important to note that part-time employees do not include:

(a) Casual employees engaged occasionally or irregularly, whose weekly working hours do not exceed 30% of the normal working hours of a full-time employee in one week; and

(b) Home-based employees who work for an employer within their own residence, regardless of occupation.

Read more: Optimizing Your Workforce: Hiring Part-Time Employees in Malaysia

Annual Leave for Part-Time Employees

The amount of annual leave for part-time employees depends on their length of employment with the employer.

• Yet, if a part-time employee hasn't completed twelve (12) consecutive months with the same employer by the end of their contract, their paid annual leave is calculated based on completed months of service.
• Regardless, a part-time employee will be compensated at their regular rate for each day of paid annual leave taken.

Sick Leave for Part-Time Employees

Similarly, the amount of sick leave for part-time employees depends on their length of employment with the employer.

• Regardless, a part-time employee is entitled to paid sick leave at their regular rate of pay, excluding non-working days.

Read more: Top 10 Tips for Hiring Part-Time Positions

Public Holidays for Part-Time Employees

Part-time employees are entitled to a minimum of seven paid holidays from gazetted public holidays, including four specific ones:

(a) National Day

(b) Birthday of the Yang di-Pertuan Agong

(c) Birthday of the Ruler or the Yang di-Pertua Negeri of the state where the part-time employee works, or Federal Territory Day if applicable

(d) Worker’s Day.

Additionally, part-time employees have entitlement to any ad hoc public holiday declared under section 8 of the Holidays Act 1951.

If required to work on a holiday, part-time employees must be compensated at a rate not less than three times their daily pay. The same principle applies if they are required to work overtime on the holiday.

Overtime Compensation for Part-Time Employees

When part-time employees work beyond their regular hours, the employer must compensate them for overtime at the following rates:

(a) At least 1 times the part-time employee’s hourly rate if the overtime doesn't exceed the normal hours of full-time employees in a similar role within the same enterprise.

(b) At least 1 ½ times the part-time employee’s hourly rate if the overtime exceeds the normal hours of full-time employees in a similar role within the same enterprise.

Rest Day for Part-Time Employees

Part-time employees are entitled to a rest day each week under the following conditions:

(a) If they work 5 days or more with a total of hours per week;

(b) If they work not less than 20 hours a week.

If a part-time employee is required to work on their designated rest day by the employer, they must be compensated at a rate not less than 2 times their daily pay.

Similarly, if they are required to work overtime on their rest day, the same compensation principle applies.

Offenses and Penalty

If the employer violates regulations regarding overtime, holidays, annual leave, and sick leave, it constitutes an offense punishable by a fine not exceeding ten thousand ringgit (RM10,000.00) upon conviction.

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• Optimizing Your Workforce: Hiring Part-Time Employees in Malaysia
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