1.0 Introduction A letter of appointment is a formal written document sent by an employer to a job candidate selected for employment. The purpose is to provide a newly hired employee a written letter of appointment as a regular and probationary status, contract, or temporary employee, as a formality, after accepting a job offer. The employees have the right to know the benefits that have been provided to them when they enter the organization. They also can question the company if the benefits given is not similar or stated in the law. There are three scopes of the laws which are Employment Act 1955, Sabah Labour Ordinance and Sarawak Labour Ordinance. These laws lay down provisions to protect workers from exploitation and provide minimum benefits for all workers covered by the respective Acts. For examples, those who earn not more than RM 2,000 per month (Employment Act) or RM 2,500 per month (Sabah and Sarawak Labour Ordinance), those who carry out manual labor, or who supervise such workers, or are employed to drive or maintain vehicles. The benefits provided include termination and maternity benefits, the right to a weekly rest day, annual leave and sick leave.
2.0 Main Discussion 2.1 Pre-employment Medical Examination and Reference CheckIt is the company’s policy that a pre-employment medical examination (including a chest X-ray) must be conducted by a panel doctor appointed by the Company. You are kindly requested to have this done at our expense. Reference and character checks will be carried out in verifying the suitability of the candidate. This offer of employment subject to your bring certified medically fit for employment, as well as the satisfactory outcome from the reference check conducted. Under Section 60F (1)(a) of Employment Act 1955 states an employee shall, after examination at the expenses of the employer by a registered medical practitioner duly appointed by the employer and subsection (1)(b) if no such medical practitioner is appointed or if having regard to the nature or circumstances of the illness, the services of the medical practitioner so appointed are not obtainable within a reasonable time or distance, by any other registered medical practitioner or by a medical officer. The UMW Aerospace Sdn Bhd has their panel doctors to refer. The employees can do medical check-up at the company’s panel clinic for free because the cost is bear by the company. Besides, it is easy for the company to refer back to the employee’s health when it is needed. 2.2 ProbationUpon appointment and commencing from your starting date, it will be necessary for you to undergo a probationary period of six (6) months. This period may be reduced or extended at the Company’s discretion and in either case, you will be informed in writing prior to the expiry of the said six (6) months. In the Malaysian Industrial Relations and Employment Law, article 16 state that all new employees on the first engagement shall be required to serve a probationary period of 3 months, but can extend for a period not exceeding 3 months in writing. The company provides six (6) months of probationary to their employees and it exceeds the minimum period that has been stated in the article 16. If the employee shows good performance and the company willing to offer the job, the probationary will be reduced but it cannot less than three (3) months. 2.3 ConfirmationOn successful completion of the probationary period, you will be given a Letter of Confirmation. In the absence of any Letter of Confirmation, you shall not be deemed to be confirmed in your appointment. Article 16 in the Malaysian Industrial Relations and Employment Law mentions that when the probationary period has complete, the new employee will be given a letter on confirmation and a copy of such letter shall be sent to the Union Works Committee in the Company. The employee will be given a Letter of Confirmation from UMW Aerospace Sdn Bhd when the company is willing to offer a permanent position to that employee after the probationary period. If the employee does not get the Letter of Confirmation, it means that the employee fails to get the position. 2.4 Notice PeriodTermination of employment during the period of probation may be affected by either party giving to the other twenty-four (24) hours written notice or pay in lieu thereof. However, after confirmation in your appointment, the notice period will be one (1) month for either party or one (1) month salary in lieu thereof. According to Section 12 (2) of Employment Law, the length of such notice shall be the same for both employer and employee and shall be determined by a provision made in writing for such notice in the terms of the contract of service, or, in the absence of such provision in writing. Subsection (2)(a) notice period shall be four weeks’ notice if the employee has been employed less than two years on the date on which the notice is given, subsection (2)(b) notice period shall be six weeks’ notice if he has been so employed for two years or more but less than five years on such date and subsection (2)(c) notice period shall be eight weeks’ notice if he has been so employed for five years or more on such date.Section 13 (1) of Employment Law state that either party to a contract of service may be terminate such contract of service without notice or if notice has already been given in accordance with Section 12, without waiting for the expiry of that notice, by paying to the other party an indemnity of a sum equal to the number of wages which would have accrued to the employee during the term of such notice or during the unexpired term of such notice. The employee needs to give a twenty-four (24) hours written notice during the termination. If he fails to provide the notice, he needs to pay in lieu for the company. For a permanent employee, the employee should give written notice one month before the termination date. It is because, the company has time and ability to find for replacement. They need to pay lieu for one month if they fail to give the notice. For the term period notice of termination, the company needs to refer to the law that has been stated in Section 12 (2) of Employment Law. 2.5 EPF ContributionAs per the Third Schedule of the EPF Act 1991, the employer and employee shall be liable to contribute monthly contributions on the number of wages at the rate respectively set out in the Third Schedule. The company may consider contributing to EPF over and above the statutory rates which shall form part of the Retirement Benefits. This contribution is solely at the company’s discretion and may vary from time to time, subject to a maximum contribution rate of 16%. In the Third Schedule of EPF Act 1991, the employer must pay his employee’s contributions based on rate stipulated. The employer must initially pay to the EPF both his and the employee’s shares. However, the employer may recover the employee’s share of the contribution by deducting it from the employee’s wage when the wage is paid to the employee. For those employees aged less than 60 years, the cumulative statutory contribution rate is 24% which is 13% of employer and 11% of the employee. It applies to those monthly earning RM 5,000 and below. For those monthly earning above RM 5,000, the cumulative statutory contribution rate is 23% which is 12% of employer and 11% of the employee. An employee aged above 60 years and below 75 years, the cumulative contribution rate is half (50%) of the statutory contribution rates for both employer and employee. The company provide EPF for their employees and follow the requirement that has been fixed by the EPF Act. The company allows contributing not more than 16% per share for their employees. The requirement is stated at above and they cannot pay below the minimum rate of EPF. The purpose of EPF is to provide financial security and stability to the employees for their future. They can use it when they retire. 2.6 Other Terms and ConditionsYour other terms and conditions of employment are in accordance with the UMW Executive Benefits Package.Other terms and conditions that need to be considered in the Executive Handbook are annual leave, sick leave, medical benefits, working hours and retirement age. 2.6.1 Annual LeaveAccording to section 60E (1) of Employment Act, an employee shall be entitled to paid annual leave if he has been employed for every twelve months of continuous service with the same employer for a certain period which mentions in subsection (a), (b) and (c). Subsection (1)(a) stated that eight days will be given for a period of less than two years, subsection (1)(b), twelve days are provided for a period of two years or more but less than five years and subsection (1)(c), sixteen days will be paid for a period of five years or more.Section 60E (3) mentions the employers shall pay the employee his ordinary rate of pay for every day of paid annual leave, and an employee on a monthly rate of pay shall be deemed to have received the annual leave pay if he receives his monthly wages, without abatement in respect of such annual leave, for the month in which he takes such annual leave. The UMW Aerospace Sdn Bhd must provide annual leave for their employees as stated in the Employment Act 1955. The annual leave stated in the section 60E (1)(a),(b),(c) is the minimum days which the company is compulsory to follow. There is no objection if the company wants to provide annual leave above the minimum days. Besides, they need to add information about the unutilized annual leave whether to carry forward or pay for it. For example, ‘you may be allowed to carry forward the unutilized annual leave up to a maximum of ten days only. Any excess thereof shall be forfeited’. 2.6.2 Sick Leave Under Section 60F (1)(aa) of Employment Act 1955, an employee shall be entitled to paid sick leave when there is no hospitalization is necessary if the employee has been employed in the certain aggregate in each calendar year. Subsection (aa)(i) stated that fourteen days provide for service less than two years, subsection (aa)(ii) entitle eighteen days for two years or more but less than five years service and subsection (aa)(iii) twenty-two days will be entitled for service five years or more. The company should follow the minimum medical leave or sick leave that has been fixed by the Employment Act 1955 and provide it to their employees who work for them and does not have a health problem during the medical check-up. 2.6.3 Medical benefits Section 60F (1)(bb) an employee shall be entitle to paid sick leave of sixty days in the aggregate in each calendar year if hospitalization is necessary, as may be certified by such registered medical practitioner or medical offer and provided further that if an employee is certified by such registered medical practitioner or medical officer to be ill enough to need to hospitalized but is not hospitalized for any reason whatsoever, the employee shall be deemed to be hospitalized for the purposes of this section. The UMW Aerospace Sdn Bhd needs to state the limitation of free clinical treatment which has been set so that, the employee will alert with their balance of sick leave. It is because to avoid from arguing by the employees when the clinic panel says that they have exceeded their limits. Besides, the company must add the details about paid sick leave and total leave is given when entering the hospital. For example, ‘in the event of hospitalization, you will be entitled to sixty (60) days medical leave (inclusive outpatient sick leave) in each calendar year’. 2.6.4 Working HoursUnder Section 60A(1) states an employee shall not be required under his contract of service to work. Subsection (1)(a) not more than five consecutive hours without a period of leisure of not less than thirty minutes duration, subsection (1)(b) not more than eight hours in one day, subsection (1)(c) not in excess of a spread over a period of ten hours in one day and subsection (1)(d) not more than forty-eight hours in one week. The company has the right to determine working hours of their employees, but, they need to obey and follow the law. They must give a rest not less than thirty minutes after doing a job for five consecutive hours, cannot exceed eight hours of work in a day, if there is an excess, it cannot exceed ten hours and cannot exceed forty-eight hours in a week. 2.6.5 Retirement AgeUnder Section 4 (1) of Minimum Retirement Age Act 2012, notwithstanding any other written law, the minimum retirement age of an employee shall be upon the employee attaining the age of sixty years. UMW Aerospace Sdn Bhd needs to state the minimum retirement age as mentions in Section 4 (1) to their employees. 3.0 Conclusion In a nutshell, we can conclude that UMW Aerospace Sdn Bhd has followed the rule and regulations that have been fixed in the Employment Act 1955. The company provide more benefits and giving the employee’s right and it shows that they are protecting their employee. They also take a good care of their employees and it would make the employees loyal and want to stay with the organization.The company is good because most of the benefits are above the minimum requirement in the Employment Act 1955. Most of the employees will find a company who gives benefits to them and they feel safe when they stay with that organization.The importance of having an appointment letter is to encourage the employees to take note of the benefits they get and can inquiry when the benefits that given is below than in the Employment Act 1955. Besides, it is to increase the awareness of the employees towards the benefit provided by the employer. 4.0 References 1. http://www.clackamas.us/des/documents/epp/epp29.pdf2. https://www.thebalance.com/job-offer-letter-20616953. https://www.kwsp.gov.my4. http://www.mylabourlaw.net/faq/37-frequently-asked-questions.php5. https://www.lawyerment.com/answers/questions/6895/section-60e-employment-act-19556. https://asklegal.my/p/i-m-not-an-employee-but-i-still-have-rights.amp7. International Law Book Services (2017) Employment Act 19558. Maimunah Aminuddin (2016) Malaysian Industrial Relations and Employment Law 5.0 Appendices