New to Human Resources in Malaysia?
Hereโs Your First Must-Do: Get the Right Law in Your Handsย โ whether you’re fresh out of university, recently promoted, or transitioning into a new HR role โ can be exciting and overwhelming all at once. But before you start drafting policies, conducting interviews, or managing employee matters, thereโs one critical thing you need to do first:
SIMPLE STEP 1
Buy the latest amended version of the Employment Act 1955 (Act 265) โ updated as at 1st January 2025
If youโre serious about starting your journey in Human Resources on the right foot, donโt cut corners. That old copy in your predecessorโs drawer? That free PDF you found online? If itโs outdated, it could lead to serious compliance issues. Spend the MYR25+/- to get the right version. Itโs a small investment that can save you from big mistakes.
Why It Matters in Human Resources
The Employment Act 1955 (EA1955) is the foundation of Human Resources practice in Malaysia. It sets the legal minimum standards for:
Working hours and rest days
Wages, deductions, and salary payments
Annual leave, sick leave, maternity leave
Employment termination, overtime, and more
If you’re managing or supporting employees โ especially those earning below a certain wage threshold or covered under the updated scope โ this is the primary law you need to understand.
Every Human Resources professional in Malaysia must be familiar with EA1955. Itโs not optional. Itโs essential.
Human Resources is Built on More Than One Law
As you grow in your Human Resources career, youโll soon become familiar with a suite of related legislation, such as:
The Industrial Relations Act โ for handling trade unions, collective bargaining, and employee disputes
The Employees Provident Fund (EPF) Act โ ensuring contributions and retirement savings compliance
The SOCSO Act โ covering social security and workplace injury protections
The Income Tax Act โ for understanding payroll deductions and employee taxation
Together, these laws form the legal backbone of Human Resources management in Malaysia. Youโll refer to them regularly in your work โ from onboarding to offboarding, performance issues to benefits administration.
Summary :
Go buy the latest amended version of the Employment Act. In Malaysia, it’s called Employment Act 1955 (Act 265) as at 1st January 2025.
If you found something in the drawer of your predecessor, or something online that is free, and it’s outdated, please don’t use it. Spend some money like MYR25+/- to get the latest version.
- โ๏ธ The EA1955 is the foundation of your HR journey and along the way, the Industrial Relations Act, EPF Act, SOCSO Act, Income Tax Act, and many more Acts will be your reading companions.
Yes, yes, yes, there is ChatGPT, do you dare try using it to solve your case or give you pointers? You can find us when you get into trouble >> StarBPO Malaysia
SIMPLE STEP 2
Master HR Data
Once youโve got the Employment Act 1955 in hand, hereโs your next must-have resource as a Human Resources practitioner:
Summary :ย
We in HR need to always earn our seat at the table and one of the value adding way is to provide numbers and present data like how the business want to see and can understand from.
Yes, yes, yes, there is ChatGPT. Here’s the thing, if you do that, all your company data, your sensitive data will then be released into the WWW. Are sure you want to do that? You can find us when you get into trouble >> StarBPO Malaysia
Whether you are new to the #HREcosystem or you have been doing HR for 1,000 years, theseย 2 items can do a lot for us.
A Word of Caution: Use AI Responsibly in HR
Yes, yes, yes โ tools like ChatGPT can be very helpful. But before you paste your HR spreadsheets, salary breakdowns, or performance data into any AI tool, think carefully.
๐จ Company data is sensitive.
If youโre uploading private employee or company information into online platforms, thereโs a real risk it could be exposed.
๐ HR data must stay confidential.
Donโt risk your companyโs trust โ or your own credibility.
Can ChatGPT Help in Human Resources? Yes, With Caution
Thereโs no doubt that tools like ChatGPT can be incredibly helpful. They can explain complex HR terms, help you draft emails or policies, and give you pointers on best practices. But hereโs the truth: ChatGPT canโt always guarantee legal accuracy, especially if the laws have recently changed or if the platform isnโt referencing the latest amendments.
If you’re making an important Human Resources decision, especially one involving legal consequences, always double-check with a current legal source or a professional.
And if you ever find yourself stuck or unsure โ weโre here for you.
๐ Find us at StarBPO Malaysia โ your partner in getting HR done right.
There you go, 2 simple steps. Do it.
We are StarBPO Malaysia, we support Business Transformation of SMEs and Large Businesses.
