Malaysia legislation

Section 41

of LABOUR ORDINANCE OF SARAWAK (AMENDMENT) ACT 2025

Section 41

The Ordinance is amended by inserting after section 109 the following sections:

“Payment on normal termination of contract.

Quoted provision

Section 109a

(a)

subsection (1) of section 11a; or

(b)

section 12 by either party.

(2)

The wages earned by but not yet paid to an employee whose contract of service is terminated by his employer in accordance with section 12, such wages shall be paid to the employee on the day on which such contract of service is terminated or, if this is not possible, on the first day, not being a rest day or gazetted holiday, after the day on which such contract of service is terminated.

Payment on termination of contract in special circumstances and on breach of contract.

Quoted provision

Section 109b

(a)

the wages, less any deductions which the employer is entitled to make under section 114, earned by such employee up to and including the day immediately preceding the day on which the termination of the contract of service takes effect; and

(b)

in addition, where the employer terminates the contract of service under subsection (1) of section 13, the indemnity payable to the employee under that subsection,

Labour Ordinance of Sarawak (Amendment)

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shall be paid by the employer to the employee on the day on which such contract of service is so terminated.

(2)

Where an employee terminates his contract of service with an employer without notice in accordance with subsection (1) or (2) of section 13 or subsection (3) of section 14, the wages, less any deductions which the employer is entitled to make under section 114, earned by such employee up to and including the day immediately preceding the day on which the termination of the contract of service takes effect shall be paid by the employer to the employee before the expiry of the seventh day after the day on which the contract of service is so terminated:

Provided that the employer may, subject to any order made by a court or the Director to the contrary, deduct from the wages due to the employee such sum as the employee is liable to pay in lieu of notice according to the provisions of section 13 or the terms of his contract, if any.”.

Substitution of section 111

Section 41 — AKTA ORDINAN BURUH SARAWAK (PINDAAN) 2025