Working Overtime in Malaysia: Here’s What You Should Know

The good old nine-to-five job seems like an outdated anomaly in today’s ultra-competitive labor market. Today’s recruiters make it obvious that working overtime is expected of you although it is not expressly written in your contract.

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Hence, that begs the question as to what amounts to working overtime and what rights are you entitled to when you work overtime. At the end of this article, we will address the issue of what you can do if you are not rightfully compensated.

Employment Act 1995 (“EA 1995”)

The Act is the main source of law on employment matters in West Malaysia. The Act applies to workers with a salary lower than RM2000 per month or those covered by the 1st Schedule of the EA 1995. For workers with a salary exceeding RM2000 per month, their rights are protected under Contract Law which is enshrined under the Contracts Act 1950.

Normal Working Hours

The rules and regulations for working hours in Malaysia pursuant to Section 60A EA 1995 are as follows:

1. Every 5 consecutive hours followed by a rest period not less than 30 minutes.
2. A maximum of 8 hours work in one day (based on a 6-day working week) or max 9 hours in one day (based on a 5-day working week).
3. A maximum of 10 hours in a “spread-over” period (10 consecutive hours from the time the employee commences work for the day, inclusive of any periods of rest/leisure).
4. Exceptionally, if the work is of a continuous nature (shift work), it can be 8 consecutive hours with a paid period of rest of more than 45 minutes.
5. A maximum of 48 hours in a week over any period of 3 weeks.

Working Overtime in Malaysia

A simple definition of working overtime would be the number of hours performed in excess of normal working hours.

In employment agreements, the employee may agree to overtime and be entitled to payment of at least one and a half times more than their hourly wage. If you are an employee covered by EA 1995, you are entitled to payment so long as you worked more than the time provided by the Act.

In terms of meal and tea breaks, the High Court in Kesatuan Sekerja Pembuatan Barang Galian Bukan Logam v Malex Industries Bhd held that it was for the employer and employees to negotiate whether breaks are to be treated as working hours.

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Therefore, do read through all the terms in your employment contract prior to your commencement at your workplace so that you are aware as to what you are agreeing to. Be mindful that regular working hours do not involve any overtime work. The reason for this is that overtime work is work carried outside of the usual working hours.

Statistical Studies

A survey conducted by Taylor’s University School of Architecture, Building and Design in 2016 showed that the majority of employees (specifically in the Quantity Surveyor Industry) work overtime due to heavy workloads and financial motivations.

Reasons for Working Overtime

1. The workload is too heavy to complete in normal hours
2. To obtain extra money
3. To increase the chances of being promoted
4. Influenced by colleagues to work overtime
5. Avoiding traffic and to kill their boredom
6. Working overtime is enjoyable

Note: 1 = the main reason to work overtime

Furthermore, the table below also showcases several factors for the overworking culture in Malaysia. These findings are from a survey by AIA Vitality in 2019.

Hence, if employees are to work overtime, they should be paid accordingly.

Paying Employees Who Work Overtime

Now that you know whether you are working overtime, the next question you might be wondering is how much overtime pay you are entitled to. For employees who are bound by the EA 1995, the Act does provide formulas on how to calculate overtime pay in different kinds of scenarios.

They include:

• Working overtime on normal working days outside of normal working hours
• Working overtime during an off-day
• Working overtime on a rest day
• Working overtime on a public holiday

For employees not covered under the Act, they are not entitled to overtime pay and the terms for their overtime pay can be found in their contract.

Legal Recourse For Employers That Fail To Pay Employees Working Overtime

If you are not paid accordingly despite working the extra hours, you should bring an action against your employees.

To start

File a complaint by:

1. Sending an official letter to the nearest Labour Department;
2. Email them at jtksm@mohr.gov.my;
3. Visit the nearest Local Labour Department; or
4. Call 03–8000 8000 them to clarify which method is the best for the current situation due to the COVID-19 pandemic.

Supporting Documents

1. Payslip;
2. An employment contract or appointment letter.

Procedure

1. The Labour Department will conduct its own investigation. They may contact the employer with regard to the money that should be claimed for the extra hours of working.
2. If the employer accepts and pays the wages, then the matter is settled and the complaint claim can be withdrawn.

Claim disputed

In a scenario where the employer disputes the claim, the Labour Office will fix a date to hear the case in the Labour Court where both parties must attend the hearing.

The complainant (employee) can choose to represent oneself or by complainant’s trade union or by an official from the Malaysian Trades Union Congress (MTUC) if he or she seeks their help.

At the end of the hearing, the Presiding Officer makes an order either orally or in writing. Any party not compliant with the decision of the Presiding Officer may appeal to the High Court within 14 days from the date of the decision.

If the defendant fails to appeal to the High Court and does not wish to comply with the order of the Labour Court, the Labour Office shall help to enforce its order in the Sessions Court in order to retrieve the money.

Disclaimer: All information displayed in this article is strictly intended for general information and knowledge only. Do seek advice from a qualified lawyer if in need of legal assistance.

This article was written by Angelene Selwanathan and reviewed by Melissa Lim.