Labour Court Complaint in Malaysia for Unpaid Wages and Employment Disputes

💼 Claiming Unpaid Wages? Start with the Labour Court

If you’re claiming unpaid wages or salary-related compensation, you can file your case at the Labour Court (Mahkamah Buruh) or at the nearest Jabatan Tenaga Kerja (Department of Labour).

Employees earning RM4,000 or less per month may also claim for:
- Overtime
- Allowances
- Termination or layoff benefits

⏰ Overtime Pay – Know Your Entitlements

If you work beyond your regular hours, you're entitled to overtime pay. Here's what the law provides:

- Normal working hours:
- Maximum 45 hours per week
- Up to 8 hours per day
- Minimum 1 rest day per week
- A break of at least 30 minutes after 5 consecutive hours of work

Overtime rates:
- On a normal working day: 1.5x hourly rate
- On a rest day (overtime): 2x hourly rate
- On a public holiday:
- Working normal hours: 2 days’ wages
- Working beyond normal hours: 3x hourly rate

What Counts as a Public Holiday?

Employees are entitled to 11 paid public holidays per year, 5 of which must include:

1. National Day
2. The Yang di-Pertuan Agong’s Birthday
3. The Ruler or Governor’s Birthday / Federal Territory Day
4. Labour Day
5. Malaysia Day (16 September)

The employer may choose the remaining 6 from the following list:
- Chinese New Year (2 days)
- Hari Raya Aidilfitri (2 days)
- Hari Raya Haji
- Deepavali
- Christmas
- Wesak Day
- Prophet Muhammad’s Birthday
- Nuzul Al-Quran (Federal Territories only)

Shift Work Allowance & Termination Benefits

Employees on shift work or those who have been terminated or laid off may also be entitled to additional allowances or compensation. These claims can be brought before the Labour Court—provided your monthly salary is RM4,000 or below.

How to Calculate Your Hourly Wage

To calculate your hourly rate:
Hourly Wage = (Monthly Salary ÷ 26 days) ÷ Number of working hours per day

When Must Wages Be Paid?

Under the Employment Act 1955:
"Subject to subsection (2), every employer shall pay to each of his employees not later than the seventh day after the last day of any wage period the wages, less lawful deductions earned by such employee during such wage period."

What You Should Prepare for a Complaint

When filing a complaint, prepare the following documents:
- Name and mailing address (as per IC)
- Employer’s name and address
- Payslips or income details (if any)
- Appointment and termination letters (if any)
- Time sheets or verified work schedules (for overtime claims)
- Details of the dispute

What if You Disagree with the Labour Court’s Order?

Any party dissatisfied with a Labour Court Order may appeal to the High Court within 14 days of the order being issued.

What If Your Employer Ignores a Labour Court Order?

If an employer fails to comply with a Labour Court order, they may be penalized:
- A fine of up to RM50,000
- An additional RM1,000 per day for each day the offence continues after conviction

What If You and Your Employer Settle or You Withdraw the Case?

Even if you settle or withdraw the case, the Director General of Labour may still:
- Investigate the complaint
- Issue an order
- Impose penalties under Sections 79, 91, and 99A of the Employment Act 1955

Is Your Employer Trying to Flee Without Paying?

If you believe your employer is about to flee Malaysia to avoid paying wages, you can report it to a Magistrate. The court may:
- Summon the employer
- Order them to post a bond to remain in Malaysia until the wages are paid (Section 78(1), Employment Act 1955)

Final Tip

While the Labour Court provides accessible ways to recover wages and resolve disputes, employment laws can be complex. If you’re unsure about your rights or dealing with complicated matters, you can always contact us through our WhatsApp number