Malaysia legislation

Section 39

of LABOUR ORDINANCE OF SABAH (AMENDMENT) ACT 2025

Section 39

The Ordinance is amended by inserting after section 108

the following sections:

“Payment on normal termination of contract.

Quoted provision

Section 108a

The wages, less lawful deductions, earned by but not yet paid to an employee whose contract of service terminates in accordance with subsection (1) of section 10a or of section 11 shall be paid to such employee not later than the day on which such contract of service so terminates.

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

Quoted provision

Section 108b

(a)

the wages, less any deductions which the employer is entitled to make under section 113, 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 12, the indemnity payable to the employee under that subsection, shall be paid by the employer to the employee not later than 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 section 12 or subsection (3)

of section 13, the wages, less any deductions which the employer is entitled to make under section 113, 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 not later than the third day after the day on which the contract of service is so terminated.”.

Labour Ordinance of Sabah (Amendment)

29

Substitution of section 110

Section 39 — LABOUR ORDINANCE OF SABAH (AMENDMENT) ACT 2025