(A) Labour Ordinance (Sabah Chapter 67) Amendment 2005

(1) What is the working time limit for a worker under the Labour Ordinance (Sabah Chap. 67)?

An employee is given a working period of not more than 8 hours a day. For a shift worker, the length of working hours is not more than 12 hours a day or no more than 56 hours a week with an average of 48 hours a week for three consecutive weeks. 

(2) What are the main key benefits provided under the Labour Ordinance (Sabah Chap. 67)?

Key benefits are:

(i) Rest Day: An employee is assigned a day off for a week. If he / she is required to work by his employer on the day of rest, he / she is entitled to payment of salary on the following rates: 

Daily paid employees or by hours: If the work period does not exceed 4 hours then the worker is entitled to a one-day salary payment. If the employee work more than 4 hours but not more than 8 hours then the employee is entitled to two days' pay.  

Monthly Labour: If the work does not exceed 4 hours then the worker is entitled to a half-day pay. If you work more than 4 hours but do not exceed 8 hours then the employee is entitled to a one-day salary payment.  

Piece Rate Method: Employees are entitled to 2 times the pay per piece overtime on day of rest: Workers are eligible to claim double the usual pay rate per hour.   

(ii) Prescribed Holidays: The Ordinance sets fourteen (14) full-time paid prescribed holidays, of which four (4) of which are prescribed as follows:

(a) National Day;

(b) The King's Birthday of the King;

(c) Sabah State President's Birthday ';

(d) Labour Day                               


(iii) Maternity Benefits: Female workers are eligible for maternity leave for 60 days. The maternity leave may be taken 30 days prior to childbirth or taking an entire 60 days at once after childbirth with a condition not exceeding 30 days before delivery.


(3) The Employer's Duty To Provide Work

(i) Am I entitled to claim salary during waiting period when I am not given any work by my employer even when I am ready and fit for work?

You are entitled to a payment for that period if you are present at work in your workplace. Section 10, Labour Ordinance (Sabah Chap. 67) protects you by placing an obligation on your employer to give you work for a period of 6 days a week.

If your employer fails or doesn’t give a job for the days even when you are ready and fit to work, then your employer is not exempted from the obligation to pay your usual salary every day because job is not given to you and not because of your wrong doing.


(ii) What should I do if an accident happens to me when I am working?

In accordance with Section 12, Workmen's Compensation Act 1952, you shall notify your employer within seven (7) days from the date of the accident and caused you to lose your ability to work.


(iii) As an employer, what should I do if an accident occurs upon a worker during work?

In accordance with the provisions of the Workmen's Compensation Act 1952, you are required to send the injured employee immediately for treatment at the dispensary or nearby government hospital. In addition, you are required to report the accident within ten (10) days from the date the accident occurred to Labour Department.


4) Notice of Termination of Work (Section 11)

How long does an employee need to serve notice need if they wanted to quit their job or terminate their service?

The notice period for termination of a job depends on the period of employment:

(a) 4 weeks’ notice if the employee has been so employed for less than two years on the date on which the notice is given;

(b) 6 weeks’ notice if he or she has been so employed for two years or more but less than five years on such date;

(c) 8 weeks’ notice if he has been so employed for five years or more on such date


(5) Employment of Non-Resident Employers (Section 118)

What is the responsibility of an employer who wants to hire a non-resident employee?

An employer is required to apply for a Non-Resident Employee Employment License in line with Section 118 of the Ordinance if an employer to employ non-resident employees.

You will need to apply by filling in the Application Form available from any Immigration Office (Secretariat of the Foreign Workers Handling Committee for Sabah and W.P.Labuan) in Sabah and submit your application together with copies of the following documents:

 i) Identity Card

ii) Trading License

ii) Land Grants

iii) Documents related to payroll activities

iv) Salary statement

v) Income tax (applicable only for maid)


(6) Working Age Limit

What is the age limit for work permitted under labour legislation?

An employer is prohibited from employing a child under 14 years of age in manufacturing, construction, transportation, mining or other places such as restaurant, coffee shop, bar, hotel or office in line with the Child Employment Order 1959, under the Labour Ordinance (Sabah Chap. 67).


(B) Workmen 's Compensation Act 1952

(1) Workmen Compensation Insurance

(i) Can an employer obtain an workmen compensation insurance policy from any insurance company?

According to the Workmen's Compensation (Foreign Workers Compensation Scheme) (Insurance) Order 1996, employers may obtain their insurance policies from authorized companies as follows:

         i.            AmGeneral Insurance Berhad

        ii.            AXA Affin General Insurance Berhad

      iii.            Berjaya Sompo General Insurance Berhad

      iv.            ETIQA Insurance Berhad

        v.            ETIQA Takaful Berhad

      vi.            Hong Leong MSIG Takaful Berhad

     vii.            AIA Berhad

   viii.            Lonpac Insurance Berhad

      ix.            MCIS Zurich Insurance Berhad

        x.            MAA Takaful Berhad

      xi.            MSIG Insurance (Malaysia) Berhad

     xii.            Multi-Purpose Insurans Bhd

   xiii.            Overseas Assurance Corporation (Malaysia) Berhad

   xiv.            Pacific & Orient Insurance Co. Berhad

     xv.            Progressive Insurance Berhad

   xvi.            QBE Insurance (M) Berhad

  xvii.            RHB Insurance Berhad

xviii.            Syarikat Takaful Malaysia Berhad

   xix.            Takaful Ikhlas Sdn Bhd

     xx.            The Pacific Insurance Berhad

   xxi.            Tokio Marine Insurans (M) Berhad

  xxii.            Tune Insurance Malaysia Berhad

xxiii.            Uni. Asia General Insurance Berhad

xxiv.            Zurich Insurance Malaysia Berhad


(ii) Am I entitled to cover if I am injured during work?

If you are not a Malaysian citizen and covered in the definition of an employee under Section 2 of the Workmen's Compensation Act 1952, you are entitled protection under the same Act. Coverage is a compensation in terms of payment. The employee or dependent shall be paid by the employer if such an accident occurs from and during your employment


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