INDUSTRIAL RELATION: TERMINOLOGY

1. JOB TITLE

A job title is the name of the position you hold at your company, typically associated with a specific set of tasks and responsibilities. A job title often denotes a person's level of seniority within a company or department. Usually it stated in an offer letter or resume.

2. WAGES

Wages is defined as basic wages and all other payments due under contract of service. It is excluded annual bonus, overtime payment, commission, subsistence allowance and travelling allowances.   The increase in the minimum monthly wage under the 2020 Order to RM1,200 per month in major cities in Malaysia was announced during the 2020 Malaysian Budget. In addition, the 2020 Order increases the minimum monthly wage for the other parts of the country by RM50 to RM1,100.

3. NORMAL WORKING HOURS

The Malaysian Employment Act defines the workweek as 48 hours. This provision was made at the time when most employees in Malaysia work for 6 days a week, so, they’re required to work only 8 hours a day maximum. There are special restrictions, considered to be protection provisions, for women in the industrial or agricultural sector.

4. RETIREMENT AGE

The retirement age is the age at which a person is expected or required to cease work and is usually the age at which they may be entitled to receive superannuation or other government benefits as example, pensions. The Minimum Retirement Age Act 2012 (MRA Act) stating that the minimum retirement age of an employee shall be the age of 60 years old. The MRA Act applies to all employers and employees in the private sector throughout Malaysia.

5. TRIPARTITE

Tripartite is recognized as a tripartite system and is made up of 3 groups and Ministry of Human Resources act as a president. His role is to oversee the overall development of discussion. This includes employers and their organizations, employees and their unions and Government. Role of employers and their organizations are to negotiate and deal with trade unions of employees and to represent their members in any trade dispute between an individual member and employee’s union. The government as the legislator through parliament. Their role is to equip the unemployed with basic industrial skills and to improve the skill level of the workforce and to assist in maximizing country’s manpower resources through manpower planning.

6. MEF

Malaysian Employers Federation (MEF) is the central organization of private sector employers in Malaysia recognized nationally, regionally and internationally. Established in 1959, MEF promotes and safeguards the rights and interests of employers. MEF provides a forum for consultation and discussion among members on matters of common interest, and seeks for the adoption of sound principles and practices of human resource and industrial relations through information, advice, research and information, training and other activities.

7. OSHA

The Occupational Safety and Health Act of 1970 is a US labor law governing the federal law of occupational health and safety in the private sector and federal government in the United States. Its main goal is to ensure that employers provide employees with an environment free from recognized hazards, such as exposure to toxic chemicals, excessive noise levels, mechanical dangers, heat or cold stress, or unsanitary conditions.

8. ACCOUNT 2 OF EMPLOYEES PROVIDENT FUND (EPF).

The EPF is a compulsory savings scheme for employees so that they will have sufficient funds in their post-retirement years. The first account, dubbed "Account I", stores 70% of the members' monthly contribution, while the second account, dubbed "Account II", stores 30%. Account I restrict withdrawals to the moment the member reaches an age of 50 years, to boost retirement fund by investment in unit trust, is incapacitated, leaves the country or passes away. Withdrawal of savings from Account II however, is permitted for down payments or loan settlements for a member's first house, finances for education and medical expenses, investments, and the time when the member reaches 55 years of age.

9. TRADE UNIONS.

The legal definition of “Trade Union” in the Trade Unions Act has implications are membership of a union is limited to workers working in Peninsular Malaysia, or Sabah or Sarawak and Unions with membership from a variety of industries not permitted. Other than that, the employers can form unions. The purposes of Trade Union are to promote the economic, social and educational welfare of their members and to protect the rights of their members at the workplace.

10. COLLECTIVE BARGAINING.

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.