• Payment of compensation to employees who suffer injury due to an accident or occupational disease arising from and during the course of employment
  • Payment of compensation to the dependants of the employee when the employee dies as a result of an accident or occupational disease arising from and during the course of employment
  • An occupational accident or occupational disaster is a personal injury caused by an accident arising from and during the course of employment of the employee.

  • 'Workman' is defined as an employee who is employed under a contract of service.

  1. Every employer is required to insure his foreign workers under the Foreign Worker Compensation Scheme with any insurer appointed by the Minister of Human Resources.
  2. Every employer must give notice in writing to the nearest Department of Labour within 10 days of the date of an accident.

  • Income is money earned by an employee including benefits and facilities that can be measured monetarily, except:
  1. Travel allowance
  2. Travel concession
  3. Employer’s contributions to the pension fund;
  4. Reimbursement of expenses incurred by an employee because of his work

 


  • Temporary partial disability means the temporary reduced ability of a worker to earn a living in a job he is capable of doing due to an accident.

  • Temporary total disability means an employee is temporarily totally unable to carry out all types of work that he is capable of doing due to an accident.

  • Permanent partial disability means the ability of a worker to earn a living in all types of work that he is capable of doing ​​ is reduced permanently due to an accident.

  • Permanent total disability means an employee is permanently totally unable to carry out all types of work he is capable of doing due to an accident.

  • Dependant means a family member who depends on the income of the deceased for the necessities of life at the time of accident which caused the death of the deceased.

  • Family members are the spouse, parents, grandparents, stepfather, stepmother, children, grandchildren, stepchildren, siblings, half-brother, half-sister and step-siblings.

  1. An injury directly caused by the influence of alcohol or drugs during the accident unless the injury results in death
  2. A disability or death due to a self-inflicted injury or an injury from a deliberate accident

  1. Form P.P 2
  2. Medical report (Labour 90)
  3. Medical certificate
  4. Copy each of passport & work permit
  5. Copy of insurance policy
  6. Copy of police report (depending on circumstances)

  1. Form P.P 2
  2. Post-mortem report
  3. Death certificate
  4. Copy each of passport & work permit
  5. Copy of insurance policy
  6. Copy of police report
  • The maximum payment for permanent disability cases is RM23,000.00.

  • Total payment for death cases is RM18,000.00 + RM7,000.00 (Foreign Worker Compensation Scheme) = RM25,000.00

  • Yes, employers must report to the nearest Department of Labour within 30 days of starting a business.

  • Yes, employers must notify the nearest Department of Labour within 14 days providing particulars of the foreign workers employed using Form PA 2/98.
  • Employers must pay the employees’ wages no later than 7 days from the end of the wage period. The method of payment is according to that agreed with the employee which is either by cash or through the bank.
  • Yes, employers must terminate the service of foreign workers first before that of  local workers in the event of worker redundancy or workforce reduction.
  • No. Employers are not allowed to deduct an employee's salary for any purpose without the consent of the employee and approval of the Department of Labour.
  • Yes, employers must provide a written contract of service that contains details and terms that are not less favourable than that provided by the law.

 

 

 

 

 

 

 

 

 

 

 

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