Many companies set up shared services in Malaysia to support other countries, for example Australia.
So I’ve been getting this question a lot:
“The company said I must follow Australia’s public holidays. So if I work on Labour Day, 1st of May, is it true there is no compensation because we follow Australia’s Labour Day instead?”
Good news. Not like that.
Rule of thumb: if you are based in Malaysia, you are protected by Malaysia’s labour laws.
Under Employment Act 1955 Section 60D(1), every employee in West Malaysia & WP Labuan is entitled to a minimum of 11 public holidays. Out of these, 5 are compulsory and cannot be substituted – Labour Day is one of them.
For the remaining 6 public holidays, they may be substituted with another day, subject to agreement between the employer and employee.
Now, when it comes to working on Labour Day:
– If your salary is not more than RM4,000 per month, or if you are a manual labourer, you are entitled to public holiday under Section 60D(3) and 60D(4), starting from 2x your ordinary rate of pay
– If your salary is more than RM4,000 per month, the common practice is for the company to provide a replacement day off on a one-to-one basis
Hope this clarifies.
Happy weekend, everybody, and Happy Labour Day!
For those who are working today, I thank you for your service. 🫶
xoxoxo, AuntyHR
