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Employee Handbook





Employee Handbook


While not legally required in Malaysia, an employee handbook is a valuable tool for both employers and employees. It outlines company policies, procedures, expectations, and benefits, fostering a clear understanding of the employment relationship.


Here are some key points about employee handbooks in Malaysia:


  • Benefits:

  • Clarity and Transparency: The handbook provides a central reference point for employees, clarifying expectations and reducing misunderstandings.

  • Reduced Disputes: By outlining policies and procedures, the handbook can help prevent conflicts and facilitate smoother dispute resolution.

  • Employer Branding: A well-crafted handbook demonstrates professionalism and commitment to best practices, potentially attracting and retaining talent.

  • Content:

  • The handbook should be tailored to the specific company and industry.

  • Common sections include:

  • Introduction and company overview

  • Work hours and leave policies

  • Compensation and benefits

  • Performance management and discipline

  • Code of conduct and ethics

  • Termination of employment

  • Accessibility:

  • The handbook should be readily accessible to employees, ideally in both English and Bahasa Malaysia.

  • Consider providing electronic and physical copies.


Remember, the handbook should not be seen as a substitute for clear communication and individual guidance from supervisors or the HR department.


Here are some additional resources you may find helpful:


  • Malaysia's Employment Act 1955: outlines legal requirements for employment contracts and employee rights.

  • Ministry of Human Resources Malaysia provides resources and information on labor laws and regulations.


Developing an Employee Handbook in Malaysia


While not mandatory, an employee handbook in Malaysia offers significant benefits for both employers and employees. Here's a guide to developing your own:


1. Gather Information:


  • Company Policies and Practices: Compile existing policies on work hours, leave, compensation, performance management, code of conduct, and termination.

  • Legal Requirements: Familiarize yourself with the Employment Act 1955 and relevant regulations from the Ministry of Human Resources (MoHR).


2. Structure and Content:


  • Introduction: Briefly introduce your company, its mission, and core values.

  • Company Policies: Detail policies and procedures on:

  • Work Hours and Leave: Explain work schedules, overtime regulations, leave types, and application procedures.

  • Compensation and Benefits: Outline salary structure, bonuses, allowances, medical benefits, and other benefits offered.

  • Performance Management: Describe performance evaluation processes, expectations, and career development opportunities.

  • Code of Conduct and Ethics: Establish clear guidelines on expected behavior, professionalism, conflicts of interest, harassment, and discrimination.

  • Termination of Employment: Explain notice periods, severance pay, and termination procedures for different scenarios.

  • Additional Policies: Include specific policies relevant to your industry, such as data privacy, social media usage, or dress code.

  • Appendices: Attach relevant forms, templates, and additional resource information.


3. Writing Style:


  • Use clear, concise, and professional language.

  • Avoid legal jargon and ensure readability for employees of diverse language backgrounds.

  • Consider offering translations in Bahasa Malaysia alongside the English version.


4. Legality and Compliance:


  • Ensure the handbook aligns with Malaysian labor laws and regulations.

  • Consult with legal counsel if needed to ensure its legality and compliance.


5. Accessibility and Communication:


  • Distribute the handbook electronically and in physical copies, accessible in both English and Bahasa Malaysia.

  • Conduct training sessions to familiarize employees with the handbook and answer any questions.

  • Encourage open communication and address any concerns promptly.


Additional Tips:


  • Regularly review and update the handbook to reflect any changes in company policies, legal requirements, or best practices.

  • Seek feedback from employees on the effectiveness and clarity of the handbook.


By following these steps and keeping your handbook up-to-date, you can ensure it serves as a valuable resource for both your company and your employees in Malaysia.


How Bestar can Help


How Bestar can assist with developing an employee handbook in Malaysia:


1. Expertise and Guidance:


  • Bestar's HR professionals likely possess in-depth knowledge of Malaysian labor laws, employment regulations, and best practices in employee handbook development.

  • We can offer guidance and ensure your handbook adheres to legal requirements and industry standards.


2. Content Development and Customization:


  • Bestar may assist in drafting and structuring the handbook content, tailoring it to your specific company needs and industry.

  • We could help develop clear, concise, and legally compliant language suitable for your diverse workforce.


3. Translation Services:


  • Bestar may offer translation services to ensure your handbook is available in both English and Bahasa Malaysia, promoting accessibility and inclusivity.


4. Template and Resource Provision:


  • We may provide access to templates or sample handbooks relevant to your industry, saving you time and effort in the development process.

  • We could offer additional resources, such as legal guidelines or HR best practices documents, to support your handbook creation.


5. Training and Implementation:


  • Bestar can assist in conducting training sessions for employees to familiarize them with the handbook content and its importance.

  • We may offer support in implementing the handbook and addressing any employee questions or concerns.


6. Ongoing Support:


  • Bestar may provide ongoing support in reviewing and updating your handbook as needed to reflect any changes in laws, regulations, or company policies.


By leveraging the expertise and resources of qualified HR service providers like Bestar, you can streamline the development process and ensure your employee handbook is accurate, compliant, and effective for your Malaysian workforce.




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