At the end of the process, the teachers said they had been fired for no good reason and without excuses. The Labour Court considered the facts of the case and concluded that, while there might be a real need for fixed-term contracts when the school was established in 1951, there was no such need when it had been successfully established that some teachers had been teaching at the school for more than 20 years and that their contracts had been extended without exception during those years. Therefore, the Labour Court held that fixed-term contracts were not used out of real necessity, but as a means of controlling and subjugating teachers. (1) The employment contract shall provide for a period of wages which may not exceed one month. For employees who are not EA EMPLOYEES, the notice period is as specified in the employment contract, and if the contract is silent, a „reasonable“ notice period is implied. (1) A contract for works and services terminates for a certain period of time or for the performance of a particular work, unless otherwise terminated under this Part, when the period for which the contract was entered into has expired or when the work provided for in the contract has been completed. An employment contract must contain clauses to protect the employer and the employee while respecting the law. If an employer is unsure whether the termination of employment is fair (if the employee files an action for wrongful dismissal, the onus is on the employer to prove that the termination of employment was fair) or if the employer wishes the employee to agree to additional agreements after the end of the employment relationship, some employers choose to offer a gratuity payment in exchange for signing a mutual separation agreement. It would then no longer be a question of termination of the employment relationship by the employer, but of an amicable separation. Given the rapidly changing landscape resulting from these recent developments, new measures and possibly other amendments to relevant employment laws should be adopted to address what is virtually an unprecedented challenge for all parts of the employment sector. In Sime UEP Development Sdn Bhd v Chu Ah Poi  1 ILR 256, the company employed an employee on a one-year fixed-term contract, who was then renewed each year for a further three years. Each time it expires, the company automatically renews its contract without the employee having to request such an extension.
The company also granted the employee salary increases for each contract extension. During his four years of work, the clerk participated in various projects. Subsequently, the company did not extend the employee`s contract for a fifth term because the company`s operations slowed down and the last project in which the applicant was involved was terminated. The Labour Court held that the fixed-term contracts were not genuine and that the subsequent conduct of the company and the employee`s total seniority actually showed that his employment was of indefinite duration. At the time of any inspection under this Part, the Director General shall, to the extent possible, inform the owner or resident of the workplace and the employer of the employees employed at the workplace of his presence, unless the Director General has reasonable grounds to believe that such disclosure could affect the performance of his or her duties. 33. Liability of contractors and contractors for wages Any person employed in Malaysia for more than one month must have a written employment contract or „service contract“, which should include the following: The legal framework of the Malaysian industrial and industrial relations ecosystem is generally provided by the Employment Act 1955 and the Industrial Relations Act 1967. the employee is entitled to dismissal and the employer must notify the employee of a dismissal and the duration of such dismissal may not be less than the period provided for in points (a), (b) or (c) of paragraph 2, regardless of the contrary provision of the employment contract. For this reason, employers and employees should always bear in mind that their rights and obligations are not strictly limited to the terms of the employment contract alone. The courts ensure that the safety of employees is protected from false, inappropriate and complicated manoeuvres and devices.
Employers should consider seeking legal advice and assistance when reviewing their existing fixed-term employment contracts with their employees, in particular when deciding whether or not to renew such contracts. Like newly immigrant workers, employers are strongly advised to ensure that there is a real need to enter into fixed-term contracts that take into account the duration, nature of the business and the work required by each employee. There has also been a notable increase in the engagement of independent contractors, as employers seek to outsource much of their non-core business processes to take advantage of lower labor and operating costs. In some employment companies, contracts with managers are converted to fixed-term contracts in order to save benefits, promote productivity and ensure greater flexibility in the hiring and termination process. The duration of such dismissal shall not be shorter than the following, depending on the duration of the employee`s employment:- Nothing in this Act shall be construed as exempting a person who has entered into a contract of employment, as an employer or as an employee, from any obligation or liability imposed on or forming part of it by the provisions of any other law currently in writing. in force in Malaysia. or restrict the power that may be exercised by a public official or any right conferred on such a person under or under this written Act. Under section 6 of the Employment (Severance and Severance Pay) Regulations 1980, employees are entitled to the severance and severance pay listed below, depending on their length of employment: – It is common for employers to hire workers on fixed-term contracts in Malaysia. A fixed-term employment contract is only a contract for a certain period. The primary intention of an employer to offer a fixed-term employment contract is generally that the employer does not have to engage in the permanent employment of the new employee. However, employers should bear in mind that in the event of an action brought by the employee before the Labour Court for unfair dismissal, the courts may consider whether a particular fixed-term contract is in fact a contract of indefinite duration. This question and dispute generally arises when the employer does not renew the employee`s fixed-term contract.
This article sets out the legal principles governing industrial relations with fixed-term contracts. Section 8 of the EEA prohibits any clause in a service contract that restricts an employee`s right: – No employer may, in a service contract, impose a condition relating to the place, manner or manner with which or with whom wages paid to the employee are to be spent, and such a condition in a service contract is void and ineffective […].