Latest news with #NationalWagesConsultativeCouncil
Focus Malaysia
3 days ago
- Business
- Focus Malaysia
Starting August 2025, apprentices must be paid minimum wage
THE National Wages Consultative Council (Amendment) Act 2025 ('Act') will come into effect on August 1, 2025. But what does this mean for employers? Starting August 1, employers hiring apprentices will be legally required to pay them at least the national minimum wage, which is currently set at RM1,700 per month. This marks a significant policy shift in how apprenticeship is viewed and it also reflects a broader commitment to improving wage standards in Malaysia. Companies need to review apprenticeship contracts and prepare for compliance by August 2025 to ensure they meet the new legal requirements and avoid potential penalties. Why is this happening? Up until now, apprentices have not been legally recognised as employees under the Act, meaning they could be paid less or even nothing at all, despite working full-time and contributing to a business. That is about to change. The Act expands the definition of 'contract of service' to include apprenticeship and resulting from this, the provisions relating to the minimum wage will also be applicable to an apprentice. A 'contract of service' is currently defined as 'any agreement, whether oral or in writing, and whether express or implied, whereby one person agrees to employ another person as an employee and that other person agrees to serve his employer as an employee but does not include an apprenticeship contract'. Pursuant to the amendment, the definition of 'contract of service' will now follow the definition in the Employment Act 1955 ('EA 1955'), Sabah Labour Ordinance and Sarawak Labour Ordinance, meaning: 'Any agreement, whether oral or in writing and whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his employer as an employee and includes an apprenticeship contract'. What is an apprenticeship? Under EA 1955, 'apprenticeship contract' means: A written contract entered into by a person with an employer who undertakes to employ the person and train or have him trained systematically for a trade for a specified period which shall be for a minimum period of six months and a maximum period of 24 months in the course of which the apprentice is bound to work in the employer's service. Apprenticeship is not internship When tabling the National Wage Consultation Council (Amendment) Bill 2024 for the second reading last year, Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad states that an apprenticeship programme is education and training governed by an apprenticeship agreement, allowing apprentices to gain the necessary competence to work in a job through structured training and financial remuneration or compensation. It differs from a traineeship programme, which involves on-the-job learning that allows trainees to gain work experience and competencies to enhance their employability. An internship programme involves students being exposed to real job environments and receiving short-term training to meet certain educational/learning qualifications. He explained that, from a legal standpoint, only apprenticeship programmes are governed by specific laws and regulations. In contrast, other internal training programmes, such as traineeships or industrial training, are not bound by any formal legal framework. Their implementation is left entirely to the discretion of the employer without oversight or mandatory guideline. ‒ July 3, 2025 Leonard Yeoh is a senior partner and Pua Jun Wen a senior associate with the law firm, Tay & Partners. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image:
Malay Mail
3 days ago
- Business
- Malay Mail
Starting August 2025: Apprentices must be paid minimum wage — Leonard Yeoh and Pua Jun Wen
JULY 3 — The National Wages Consultative Council (Amendment) Act 2025 ('Act') will come into effect on August 1, 2025. What does this mean for employers? Starting August 1, 2025, employers hiring apprentices will be legally required to pay them at least the national minimum wage, which is currently set at RM1,700 per month. This marks a significant policy shift in how apprenticeship is viewed and reflects a broader commitment to improving wage standards in Malaysia. Companies need to review apprenticeship contracts and prepare for compliance by August 2025 to ensure they meet the new legal requirements and avoid potential penalties. Why is this happening? Up until now, apprentices have not been legally recognised as employees under the Act, meaning they could be paid less or even nothing at all, despite working full-time and contributing to a business. That is about to change. The Act expands the definition of 'contract of service' to include apprenticeship and, as a result, the provisions relating to the minimum wage will also be applicable to an apprentice. A 'contract of service' is currently defined as 'any agreement, whether oral or in writing, and whether express or implied, whereby one person agrees to employ another person as an employee and that other person agrees to serve his employer as an employee but does not include an apprenticeship contract'. Pursuant to the amendment, the definition of 'contract of service' will now follow the definition in the Employment Act 1955 ('EA 1955'), Sabah Labour Ordinance and Sarawak Labour Ordinance, meaning – 'Any agreement, whether oral or in writing and whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his employer as an employee and includes an apprenticeship contract'. Apprenticeship programme is an education and training governed by an apprenticeship agreement. — Picture by Miera Zulyana What is an apprenticeship? Under the EA 1955, 'apprenticeship contract' means – A written contract entered into by a person with an employer who undertakes to employ the person and train or have him trained systematically for a trade for a specified period which shall be for a minimum period of six months and a maximum period of twenty-four months in the course of which the apprentice is bound to work in the employer's service. Apprenticeship is not internship When tabling the National Wage Consultation Council (Amendment) Bill 2024 for the second reading last year, Deputy Human Resources Minister Datuk Seri Abdul Rahman stated that an apprenticeship programme is education and training governed by an apprenticeship agreement, allowing apprentices to gain the necessary competence to work in a job through structured training and financial remuneration or compensation. It differs from a traineeship programme, which involves on-the-job learning that allows trainees to gain work experience and competencies to enhance their employability. An internship programme involves students being exposed to real job environments and receiving short-term training to meet certain educational or learning qualifications. He explained that, from a legal standpoint, only apprenticeship programmes are governed by specific laws and regulations. In contrast, other internal training programmes, such as traineeships or industrial training, are not bound by any formal legal framework. Their implementation is left entirely to the discretion of the employer without oversight or mandatory guidelines. * Leonard Yeoh is a senior partner and Pua Jun Wen a senior associate with the law firm, Tay & Partners. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Borneo Post
5 days ago
- Business
- Borneo Post
Labour rights outreach crucial to rural development, says MP
Willie (left) prepares to flag off the LGRAP 6.0 convoy. KUCHING (July 1): Puncak Borneo MP Datuk Willie Mongin has lauded the proactive efforts of the Sarawak Labour Department in expanding workers' rights awareness and labour-related services to rural communities through the Labour Go Rural Area Programme 6.0 (LGRAP 6.0). He said it is important to ensure that both employers and workers across Sarawak are well informed about recent improvements made to the state's labour laws. Since the amendments to the Sarawak Labour Ordinance (Chapter 76) came into effect on May 1 this year, Willie noted the department has taken commendable steps to update the public on these changes. 'This includes awareness on matters such as maternity and paternity leave, shorter working hours, and other critical employment rights,' he said during the official launch and flag-off ceremony of LGRAP 6.0 at the Sultan Iskandar Building here yesterday. He described the department's role as vital in maintaining workplace harmony, ensuring fair dispute resolution between employers and employees, and upholding enforcement through regular statutory inspections conducted by its 16 branches throughout Sarawak. 'Such efforts are aligned with both federal and state governments' aspirations to drive social and economic development. I urge employers, workers, training institutions and local communities to work closely with the department to build a fair, inclusive, and progressive employment ecosystem,' he added. LGRAP, now in its sixth iteration, is a strategic outreach initiative by the Ministry of Human Resources aimed at bridging the gap in labour services between urban and rural areas. Willie noted the initiative has benefitted thousands of Sarawakians by bringing advisory services and labour rights education directly to rural communities. The programme also saw participation from various agencies including the National Wages Consultative Council, the Anti-Trafficking in Persons Council, the Royal Malaysia Police, and the Ministry of Health, all of which held exhibitions and talks during the event. 'This reflects the strong cooperation between federal and state-level departments in delivering direct, quality services to the public,' said Willie. He commended the Sarawak Labour Department for organising the event and expressed confidence that such initiatives will further raise awareness among Sarawakians regarding their legal rights as workers. Willie also thanked all parties involved in the programme and expressed hope that similar initiatives will continue in the future. He later launched the Ministry of Human Resources' Customer Day and flagged off the LGRAP 6.0 convoy, wishing participants a safe and successful outreach mission across Sarawak. lead rural areas Sarawak Labour Department Willie Mongin
Free Malaysia Today
23-06-2025
- Business
- Free Malaysia Today
Pay bus drivers minimum wage or face action, ministry tells firms
The human resources ministry said the labour department will tighten enforcement against parties that violate the laws on wages, including bus companies. (Facebook pic) PETALING JAYA : The human resources ministry says it will not hesitate to act against companies that flout national wage laws, in response to a report on the low basic salaries paid to bus drivers. Harian Metro had reported that some express and tour bus drivers claimed they receive basic salaries as low as RM700, with some saying they are not paid base salaries at all. In a statement today, the ministry said it takes such reports seriously, and that the labour department will tighten enforcement against parties violating the laws on wages. It reiterated that all companies must pay their employees a minimum of RM1,700 regardless of salary structure, according to the Minimum Wages Order 2024. It said companies that flout the National Wages Consultative Council Act 2011 are punishable under Section 43 of the Act, with first-time offenders liable to a fine not exceeding RM10,000 for each employee, and repeat offenders a maximum of RM20,000 or up to five years' prison sentence. In the report, those who claimed they are not paid basic salaries said they have to rely on travel allowances and overtime work to make ends meet. 'In my company, there is no base salary. I earn RM50 for a single trip from Manjung (Perak) to Terminal Bersepadu Selatan (Kuala Lumpur). I can make RM100 a day from a round trip. 'If I take four days off in a month, I earn around RM2,600. If I don't take any day off, I can earn RM3,000,' said a 29-year-old express bus driver who only wanted to be known as Mamat. Another driver, who asked to be identified as Mior, said he had previously taken only three days off in a month, relying on payment depending on the distance of his trips. Malaysian Bumiputera Bus Operators Association chairman Zainal Abidin Mehat also said some bus companies allow their drivers to work up to 28 days a month because of a shortage of manpower. The ministry also said it would carry out a review of 28 labour-related laws through a task force headed by deputy secretary-general (policy and international) Shaharin Umar to ensure that there are no exploitable legal loopholes. This review is scheduled for completion in May next year.
