Employer-Employee Relationship in Malaysia

In Malaysia, the employer-employee relationship is regulated principally by the Employment Act 1955 (EA) and to some extend by the Industrial Relations Act 1967 (IRA). Both Acts perceive the employer-employee relationship as being essentially contractual in nature. But while the EA describes the employment contract in terms of the well known "Contract of Service", the IRA describes it in terms of the more modern "contract of employment".

The Employment Act defines the "Contract of Service" as;
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.

The Industrial Relations Act defines the "contract of employment" as;
any agreement, whether oral or in writing and whether express or implied, whereby one person agrees to employ another as a workman and that other agrees to serve his employer as a workman.