Malaysian Short-Term Contract Workers Loses Worker Rights? What will PH do protect and promote rights?

When a worker is employed under a fixed-term contract or short-term contract especially of 12 months or less, he/she loses a lot of worker rights..., even the legally recognized worker rights in Malaysia.. 

* Loses TERMINATION or LAY-OFF Benefits

- This right is only for workers who work for more than 12 months according to our law

EMPLOYMENT (TERMINATION AND LAY-OFF BENEFITS) REGULATIONS 1980 (REVISED 1983)

3  General provisions for the entitlement of employees to termination or lay-off benefits payment
 

(1) Subject to these Regulations, an employer shall be liable to pay termination or lay-off benefits payment calculated in accordance with regulation 6 to an employee who has been employed under a continuous contract of service for a period of not less than twelve months ending with the relevant date if-

(a) the contract of service of the employee is terminated; or
(b) the employee is laid-off within the meaning of regulation 5.

(2) For the purpose of this regulation a continuous contract of service for a period of not less than twelve months shall include two or more periods of employment which are not less than twelve months in the aggregate if the intervening period or periods between one period of employment and another does not in the aggregate exceed thirty days.

6  Amount of termination or lay-off benefits payment
(1) Subject to the provisions of these Regulations, the amount of termination or lay-off benefits payment to which an employee is entitled in any case shall not be less than-

(a) ten days' wages for every year of employment under a continuous contract of service with the employer if he has been employed by that employer for a period of less than two years; or
(b) fifteen days' wages for every year of employment under a continuous contract of service with the employer if he has been employed by that employer for two years or more but less than five years; or
(c) twenty days' wages for every year of employment under a continuous contract of service with the employer if he has been employed by that employer for five years or more, and pro-rata as respect an incomplete year, calculated to the nearest month.

* Loses the right to claim wrongful dismissal and reinstatement

- A regular employee have the right to employment usually until his/her retirement age, BUT a a worker employed on a 1-year employment contract has only the right to employment for 1 year from the date of appointment, and if such a worker is wrongfully terminated on his 6th month of work, what he can claim for is only for the balance 6 months of employment. So, if he is a minimum waged worker, that means he is literally claiming for 6 months of employment valued at RM1,100 per month. Since even Trade Union representatives 'charge' the worker about RM5,000 - RM10,000, it really is of no financial sense or reason to even file the claim or take up a case > This means employers can arbitrarily wrongfully dismiss any such worker and not face any risk...??? 

* Right to increase number of paid annual leave and sick leave

  - In the Employment Act, a worker the longer he works will get more number of days of paid annual leave and sick leave.. 

60E  Annual leave (Employment Act 1955)
 

(1) An employee shall be entitled to paid annual leave of-

(a) eight days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of less than two years;
(b) twelve days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of two years or more but less than five years; and
(c) sixteen days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of five years or more,

and if he has not completed twelve months of continuous service with the same employer during the year in which his contract of service terminates, his entitlement to paid annual leave shall be in direct proportion to the number of completed months of service:

60F  Sick leave (Employment Act 1955)
 

...entitled to paid sick leave-

(aa) where no hospitalisation is necessary-

(i) of fourteen days in the aggregate in each calendar year if the employee has been employed for less than two years;
(ii) of eighteen days in the aggregate in each calendar year if the employee has been employed for two years or more but less than five years;
(iii) of twenty-two days in the aggregate in each calendar year if the employee has been employed for five years or more; or

(bb) of sixty days in the aggregate in each calendar year if hospitalisation is necessary, as may be certified by such registered medical practitioner or medical officer:...

* Right to maternity leave

- Some employers are 'smart' - they may employ women workers possibly for just 9 month employment contracts - so, even if they do get pregnant, their contract would have ended just before their entitlement arises - so no need for employer to pay for 'paid maternity leave'

* Right to form and use unions

- Even if the relevant Human Resource Ministry approves the registration of the trade union, and by chance the employer recognises fast the trade union...even before any Collective Bargaining Agreement can take effect, possibly all the said trade union leaders would have ended the period of employment > and Malaysian law, as it stands now, states that they cannot be union members anymore after they are no longer employees.. 

* Right to increased income 

- Normal regular employees usually will get a salary increment at the end of every year of employment - it may be small as just RM50...but still an increment which really is needed to compensate for the increasing cost of living and other natural increasing financial needs.  But for short-term contract employees, they will have to start looking for another job after their short employment period ends...Difficult too, since there may be no similar factories nearby, meaning the 'skills' obtained in past employment will not help a demand for higher wages...in the next or subsequent employment. Chances of getting employment may also diminish as one becomes older...or for a women, if she is pregnant. A pregnant women may simply not be able to find any new employment..

The former BARISAN NASIONAL government did not place any restriction on the use of short-term contract employees...and nowadays, some factories are simply choosing to hire more and more short-term contract employees..

Have Trade Unions made sure that their Collective Bargaining Agreement or 'other' agreements ensures that future employees be employed as regular employees, and not short-term contract employees...

WHAT THE GOVERNMENT CAN DO TO PROTECT WORKERS AND ENSURE EMPLOYMENT SECURITY?

- Amend the Law > Require all Employers to employ workers as REGULAR Employees. (This means employees will be employed until retirement age. If the company/business shuts down or requires lesser workers, they can always RETRENCH. If the employee commits a serious breach of employment contract or a serious employment misconduct, then Employers can also terminate..)

- There may be certain limited exceptions:-

* Workers needed to just do some work like in Construction Industry, say painting - then after the painting is completed, and there is no need for the painters, these employees can then be terminated.

* At certain times of the year, say for General Elections, the Election Commission may need to employ additional employees for the Election period, then after that work is done, such employees can be let go as there is no more work for them...

* For migrant workers, theirs are usually a fixed-term Contract, which should be at least 3-5 years. No more annual contracts, but based on the total term the employer agreed to employ the migrant, which is usually 3 - 5 years.

FIXED-TERM OR SHORT-TERM Contracts may be OK for professional workers or highly skilled workers, who are in demand...BUT for the poor unskilled or low-skilled worker, it is a GREAT INJUSTICE.

After 10 years of worker experience, they may still be earning MINIMUM WAGE...How will they deal with their increasing obligations ...spuse...then children...then education expenses, clothing, etc...

When our Members of Parliament takes home a salary of RM16,000 plus allowance and all kinds of other benefits > Remember even MPs have employment security for at least 4-5 years, plus pension thereafter...

What about the rest of Malaysian workers...Remember Pakatan Harapan gave the impression that if they win, the Minimum Wage will be raised to RM1,500...and then they raised it to RM1,050 and then to RM1,100....By the way, what is cheapest rental for a house in the Klang Valley - RM800? RM1,000? So what will workers eat? 

With the trend of increasing use of 'short-term employment contracts', workers also do not have FINANCIAL SECURITY - every year, they will have to go out and try find new jobs...It is stressful...and worse still is the impact to workers and their families...Breaking out of poverty becomes almost impossible..

Supply and demand - When there is a great demand for workers, then naturally employers will be willing to pay Higher Wages and provide better working conditions... BUT then the previous Barisan Nasional government simply open the doors and brought in migrant workers...thus the chance and capacity for local workers to get better wages just suffered...

Malaysian workers are already becoming 'migrant workers' in countries that pay higher wages...this will most likely happen more and more in the future...

Is it not time to look after the WELFARE of Malaysian workers? Is it not time to give the right to REGULAR EMPLOYMENT(employment until retirement unless...)? Is it not time to increase MINIMUM WAGES in Malaysia so that at the very least it is a LIVING WAGE? 

RM1,100 divide by 30 equals about RM36 per day - who can survive with that? How can a worker with a family and children survive? Maybe, we should give our MPs salary of RM1,100 for 3 months, without any other allowances or benefits, and then maybe they will understand...