CHAPTER 2 
TERMS AND CONDITIONS OF 
EMPLOYMENT
Type in the name of the company you are going to have an interview with.
Employee medical benefits are the additional benefits provided to the 
employees by the company
Examples of medical benefit are:
 Employee Medical Plan.
• There is a regular medical check up for the employees to provide the healthy 
working condition to the employees.
• Employees are provided with healthy and hygienic food by the company.
Almost all the companies provide their employees with medical benefits 
so that they can give their best during their working hours without any 
fear
Layoff 
benefits
Length of Service               Amount of Benefit
1 to 2 years 10 days’      wages for every year of service
2 to 5 years 15 days’      wages for every year of service
5 and above 20 days’      wages for every year of service
The term "layoff" originally meant a temporary suspension or 
permanent termination of employment of an employee for business 
reasons, 
- E.gs: personnel management or downsizing an organization.
Usually a layoff occurs as a costcutting measure
Layoffs are not caused by any fault of 
the employees but by reasons such as 
lack of work, cash, or material.
Benefits
Notice of Termination
The notice of termination in accordance with the contract of 
service but shall not be less than those specified in the 
Employment Act 1955
•The Employees Rights Under The Employment Act 1955
Length of Service             Amount of Benefit
1 to 2 years 10 days’    wages for every year of service
2 to 5 years 15 days’    wages for every year of service
5 and above 20 days’    wages for every year of service
Involuntary : Referred to dismissal or 
being retrenched due to company 
economy problems
Voluntary : An employee may quit because 
of resignation due to other job outside or 
retirement (employees ARE NOT entitled 
to termination benefit)
Something that aids or promotes well-being, an advantage to the 
employee that includes:
Maternity 
benefits
Medical 
benefits
Resignation 
benefits
Retrenchment 
benefits
Layoff benefits
Termination 
benefits
How ambitious are you?
Sick Leaves
Length of Service     No. of Days of Sick Leave
Less than 2 years    14 days
2 to 5 years            18 days
5 and above            22 days
The employer is required to pay for
this medical examination and he
also pays for any treatment
recommended by the doctor
Before employees can avail themselves of this privilege,
they must undergo an examination by a registered
medical practitioner appointed by the employer (known
as a panel doctor) and be certified unfit for work by the
doctor
Annual Leaves
Length of Service No. of Days of Annual Leave
1 to 2 years 8 days
2 to 5 years 12 days
5 and above 16 days
Employees are only entitled to annual leave once they
complete a year of service
The duration of annual leave granted to workers depends
on their length of service with their employer
Public Holidays
Where and how do you see yourself in 5 years time?
Type in the answers.
Examples of the remaining six gazette public holidays
are:
Hari Raya Puasa Christmas Chinese New Year
Deepavali New Year’s Day Wesak Day
Thaipusam Awal Muharram Hari Raya Korban
Thaipusam Awal Muharram Hari Raya Korban
Deepavali New Year’s Day Wesak Day
Hari Raya Puasa Christmas Chinese New Year
are:
Examples of the remaining six gazette public holidays
Five of 11 gazette public holidays are:
Birthday of the State Ruler
Birthday of the Yang di-Pertuan Agong
Independence Day
Malaysia Day
Workers Day
The Employment Act entitles workers
to 11 public holidays per year whereas
Malaysia has 16 or 17 (depending on
the state) such holidays
Rest Days
What are your long-term goals ?
Type them in.
When a daily rated employee agrees to work on his rest day at the request of his 
employer he is entitled to a higher than normal rate of pay: • If he works less than half his normal hours of work, he is paid one (1) full days’ wages. • If he works between half the normal hours & the full hours he is entitled to two (2) day’s wages.
The term "layoff" originally meant a temporary suspension or 
permanent termination of employment of an employee for business 
reasons, 
- E.gs: personnel management or downsizing an organization
Layoffs are not caused by any fault of 
the employees but by reasons such as 
lack of work, cash, or materia
For employees who do not work the normal work hours (e.g. shift work), the 
employer will prepare a roster for the employees’ rest days & this roster will be 
informed to the employees in advance
It can be on a Sunday, Friday, or any other day.
All employees are entitled to at least ONE (1) rest day per week
Also known as the period of time during which you are
absent from work or duty with the permission from your 
employers
What are your short-term goals ?
Type them in.
Several types of leaves that include:
 Rest days
 Public holiday
 Annual leaves
 Sick leaves
Main topic
WAGES/SALARY
DEDUCTIONS FROM WAGES
permission of the Director-General of 
Labour, the total deductions may be increased to 75 
percent of the monthly wage
The maximum monthly total deduction must not exceed 
50 per cent of the employee’s wages unless the amount 
to be deducted includes repayment of a housing loan
Deductions from employees’ wages are only allowed in 
certain restricted circumstances
ADVANCES ON WAGES
offer an advance on wages to 
their employees, particularly before the various 
religious festivals
this is not encouraged to be practice 
because lending money to employees may lead to 
all kinds of industrial relations problems
The Employment Act allows employers an advance 
on wages
Wage Payment
What experience have you got from your previous jobs? Make sure you specify all your previous work experience, part-time jobs, vacation jobs, voluntary work, and unpaid work experience that are relevant for the position you are applying for.
However, the Employment 
Act Section 25(10) do 
allow payment to be made 
in the following form:
Payment through 
cheque issued directly to 
the worker
Payment on the name of 
the employee through 
any bank accounts in 
Malaysia
Wages paid to 
employees must be in 
legal tender
Wage Periods
Describe a typical work day in your previous/current position.
The employer must 
make payment of 
wages not later 
than 7 days after 
the end of that 
wage period
Must be paid at 
least once every 
month.
Wages means basic salary & other payments in cash to an employee due under the 
contract of service excluding
Why will/did you leave your existing/last job?
• Annual bonus
• Overtime payments
• Commissions
• Subsistence allowances (Elaun Sara Hidup) • Travelling allowances
• Any gratuity payable on discharge or retirement 
• Any contribution paid by the employer account’s to any pension fund, provident fund, superannuation 
scheme, retrenchment, termination, lay off or retirement scheme established for the benefits of 
employee
• The value of house accommodation or supply of food, fuel, light,water, or medical attendance.
• Any retrenchment or termination benefits.
Partime
Do you fully understand what this position implies?
After you've made some research on the company, read the job description thoroughly, and try to fully understand what your responsibilities will be.
Organization use part-time jobs to increase in 
the number of employees to complete a certain 
demand or projects.
What would you do on the first day?
What about the first week(s)? Fill in some of the actions that you are planning to take.
They can earn extra income through part-time 
work without being tied to the organization.
What do you think the main challenges will be?
Type them in.
An employee can be working during the normal 
working hours but he/she is employed on an 
hourly basis
What will be your main tasks?
Type them in.
Compressed Work Week
Disadvantages of Compressed Work
May result in overtime expenses, creating 
salary equity issues among those not 
participating in the program
Managers may be required to work the same 
schedule as the employee for support and to 
provide supervision
Difficult to arrange dependent care or 
transportation around the longer workday
Employee morale could suffer due to the long 
hours.
Longer work day is physically and mentally 
challenging
Advantages of Compressed Work
Work life balance
Motivation to work
Time for personal care
Tend to be more productive during 
scheduled work days
Lower absenteeism & lateness rates 
at companies
Employees can schedule their leisure 
time for family life, personal 
business & recreation
An example will be 4 
days workweek and the 
length of the work day 
will be increase to 10 or 
more hours
Any arrangement of 
work hours that permits
employees to fulfil their 
work obligation in fewer 
days than the typical 5 
day or 6 day workweek
Flexitime
In other words, the employees can 
work any time they choose, but per 
day they have to put in 8 hours of 
efforts or 48 hours per week.
Flexitime refers to variations in 
starting and quitting times but 
assumes that a constant number of 
hours (8 hours) are worked each 
day
Flexitime or flexible working hours is a system of working
hours where the starting and stopping times are decided by
the individual worker within a number of limitations set by
the employer
Shift Work
There are two shift patterns;
In the triple shift pattern, we can have a three eight-hour 
shift
Morning shift 7 a.m. – 3 p.m.
Afternoon shift 3 p.m. – 11 p.m.
Night shift 11 p.m. – 7 a.m.
In the double shift pattern, we can have a normal eight-hour 
shift or twelve-hour shift
We have double-day shift : two shifts in one day and triple 
shift work – three shifts in one day
Employers will normally provide several types incentives to their 
employees for e.g. free transportation from house to workplace, 
free food & shift allowances
However, the average number of hours worked over any period of 
3 weeks shall NOT exceed 48hours/week
The shift worker may be required to work for more than 8 
hours a day or more than 48 hours a week BUT must have 
a break of 30 min for every 5 consecutive hours of work
Overtime
Any work carried out by an employee employed on a daily, hourly or other rate of 
pay who WORKS ON REST DAY shall be paid
• 1 day’s wages if he works less than half his normal hours of work
• 2 day’s wages if he works between half the normal hours and the full hours
• If employee employed on piece rate who work on a rest day, he shall be paid twice his ordinary rate 
per piece
Therefore, the employee shall be paid at the rate NOT LESS than one & half (1.5) 
times the hourly of pay.
How would you describe yourself?
Type in a short description.
Overtime means the number of hours of work carried out in excess of the normal 
hours of work per day.
What are your hobbies?
What do you like to do in your free time? What was the last film you saw or the last book you read? Think of the activities that relax you the most. Fill in several hobbies.
Working Hours
Are you qualified for this position?
Interviewers will want to know whether or not you are able to do the job. 
Answer the questions from this section and see if you are the right person for this position.
However, under Sect. 60(2) of the 
Employment Act, an employee 
may be required to exceed the
above limitation by the employer 
when:
What are your weaknesses?
Examples:
stubbornoverly critical, can't accept authoritytoo demandingtoo talkativetoo quiettoo sensitivelacking assertivenesslacking social tact
Accident, 
threatened 
in or at 
workplace
Work 
that 
involves 
the 
defence
of 
Malaysia
How do you work on overcoming these weaknesses?
Type in a short explanation.
According to Sect. 60A 
of the Employment Act, 
an employee in his 
contract of service 
SHALL NOT BE required 
to work:
What strengths qualify you for this job?
Example: 
ambitiousgood communicatorfocuseddeterminedadaptablecuriousoptimisthard workerhonestpoliteco-operativeself motivatedenthusiasticgood leaderstrategic thinkerquick learnerflexiblegood problem solver
> 5 
consecutive 
hours 
without a 
period of 
leisure of not 
< 30 min 
duration
> 8 
hours 
in one 
day
Why do you think you have this strength?
Give an example.
EMPLOYMENT ACT 1955 (Revised 1981) (Act 265)
Research the company
You should find and learn as much as you can about the company where you are having an interview.
The interviewer will want to see what you know about them and why you chose the company. 
Doing your homework will show that you are really interested.
Leaves
 Rest days
 Public holidays
 Annual leaves
 Sick leaves
What is the size of this company?
Salary/Wages
What can you do for this company that someone else can't?
Type in several unique traits that will turn you into the perfect candidate for the position.
 Wage periods
 Wage setting
 Advances on Wages
 Deductions from wages
 Priority of wages
WORKING HOUR
What do you know about the company?
Type a short description of the company's background.
 Overtime
 Shift Work
 Flexi time
 Compressed work week
 Part time