The Industrial Relations Act 1967 (Act 177) aims to promote and maintain
industrial harmony in Malaysia. It regulates the relationship between
employers, workmen, and trade unions, providing the framework for
collective bargaining and the resolution of workplace grievances.
Section 20 is a vital component of this Act, allowing employees to challenge
dismissals they deem to be without "just cause or excuse." Following the
2021 amendments, the process has been streamlined; representations for
reinstatement must be filed within 60 days. If conciliation fails at the
Industrial Relations Department, cases are now referred more directly to
the Industrial Court for an official award.
The Act also safeguards the right to participate in trade union activities
without fear of victimization. It defines "unfair labor practices" and
ensures that once a collective agreement is taken cognizance of by the
Industrial Court, it becomes legally binding on both parties, effectively
serving as a contract that maintains stability in the workplace.
