An employee who has a dispute with his employer regarding wages or any other payment in cash due to the employee may file a complaint with the Labour Department (Jabatan Tenaga Kerja) under the Ministry of Human Resources (refer to https://jtksm.mohr.gov.my/ms/ for more information). Pursuant to Section 69 of the Employment Act 1955, The Director General of Labour has the power to inquire into such complaints and decide on the dispute between the employer and employee.
Only employees whose wages are below RM5,000 may have their case heard by the Director General of Labour. The place where this employer-employee dispute is heard is commonly referred to as the Labour Court (Mahkamah Buruh) / Labour Office / Labour Department (for ease of reference, we will refer to it as the “Labour Office”).
When a complaint is made by an employee against his employer, the Labour Office will contact the employer concerning the claim and commence the inquiry process. During this time, the Labour Office will attempt to facilitate the resolution of the dispute between parties.
If the matter cannot be resolved, the Labour Office will fix a date for the case to be heard and both parties are required to be present. At this point of time, a summons (known in BM as “Saman Ketua Pengarah Tenaga Kerja”) will be sent to the employer. In the summons, the employee is now named as the Complainant while the employer is named as the Defendant.
After hearing the case, the Labour Office may make an order for payment by the employer of such sum of money as he deems just or other necessary consequential orders necessary to give effect to his decision. If either party is unsatisfied with this Order, they may appeal to the High Court within 14 days from the date of the order (pursuant to Section 77 of the Employment Act).
The Order from the Labour Office may be recorded in the Sessions Court and enforced against the Defendant in the event of non-compliance.