Employee Handbook - West Malaysia

1. Introduction & Company Overview

1.1 Welcome Message from Management

1.2 Purpose of the Employee Handbook

Sofia & GPT recommends that we letak a clause camni kat bawah:

This Handbook is intended to be read in conjunction with applicable employment laws.
In the event of any inconsistency, the provisions of the law shall take precedence.

1.3 Company Background & Business Overview

1.4 Vision, Mission & Core Values

1.5 Scope & Applicability of the Handbook

For the purposes of this Handbook, the terms 'Letter of Appointment', 'Employment Contract', and 'Contract of Service' shall be used interchangeably to refer to the formal agreement signed between the Employee and the Company.

1.6 Acknowledgement of Receipt & Understanding

2. Employment Relationship

2.1 Nature of Employment (Permanent / Contract / Probation / Internship)

2.2 Employment Classification (EA & Non-EA Employees)

2.3 Appointment & Confirmation

P: Not sure if needed but Sofia cakap good to have:

2.3.1 Contract of Services

If the employer and the employee signed a contract before the Employment Act came into effect, that contract is still valid if it does not conflict with the new Act. This means that the agreements and terms you agreed to in the past are protected.

If the employment contract provides benefits or terms that are better than those required under the law, those better terms will apply to the employee.

If any term in the employment contract or this Handbook is less favourable than what the law provides, the legal minimum standards under the Employment Act will apply instead.

The employment contract cannot stop the employee from joining or participating in trade unions. The employee’s right to be part of a union, which fights for workers’ rights and benefits, is protected.

2.4 Probation Period & Performance Review

2.5 Transfers, Secondment & Job Rotation

2.6 Promotion & Career Development

2.7 Place of Work & Hybrid Work

2.7.1 Primary Work Location

The employee's primary place of work is the location stated in their Letter of Appointment. However, the Company reserves the right to transfer or second any employee to any other department, branch, or location within the Group based on operational requirements.

2.7.2 Discretionary Remote Work

Employees may work remotely at their discretion, provided that:

• It does not interfere with operational requirements or team collaboration.
• Prior verbal or written agreement is sought from the respective Head of Department (HOD).
• The employee remains reachable and productive during standard working hours.

The Company and HODs reserve the right to require physical attendance at the office for meetings, training, or specific project needs as they see fit.

2.8 Flexible Working Arrangements (FWA)

2.8.1 Eligibility & Scope

In accordance with the Employment Act 1955, employees may apply for a flexible working arrangement to vary their working hours, workdays, or place of work.

2.8.2 Application Process

Any request for FWA must be submitted in writing to the Head of Department and HR. The application should clearly state the proposed changes and the effective date.

2.8.3 Company Review

The Company will evaluate each request based on operational requirements, the nature of the role, and impact on team productivity. A formal decision will be provided in writing within 60 days of receiving the application.

2.8.4 Discretion of Management

While the Company will consider all requests fairly, approval is at the absolute discretion of Management. If a request is declined, the Company will provide the grounds for refusal in writing.

3. Working Time & Attendance

3.1 Normal Working Hours

3.1.1 General Principle

Normal working hours shall not exceed 8 hours per day or 45 hours per week, excluding meal breaks, in accordance with the Employment Act 1955.

Employees shall not work more than 5 consecutive hours without being provided a minimum break of 30 minutes.

The total daily working period, inclusive of breaks (spread over period), shall not exceed 10 hours per day unless otherwise permitted under the law.

3.1.2 Operational Flexibility

Due to the nature of the Company’s business, employees may be required to work:

• Irregular hours
• Extended hours
• Weekends or public holidays
• Split shifts
• Outstation assignments

These situations may occur during events, trainings, or operational peak periods. Working hours during such periods may differ from the official working hours stated.

Note: Eligibility for statutory practices (such as Overtime, Rest Day, and Public Holiday pay) is determined by Part XII of the Employment Act 1955. This applies to employees whose monthly wages do not exceed RM 4,000 or those engaged in manual labour. For employees whose monthly wages exceed RM 4,000, any additional work or com ​pensation shall be governed strictly by the terms of their individual Letter of Appointment.

3.1.3 Official Working Hours (Administrative Days)

The official working hours are as follows:

Monday to Friday: 8:30am to 6:00pm
Lunch Break: 1:00pm to 2:00pm
Friday Lunch Break (Male Muslim Employees): 12:30pm to 2:30pm

The Management reserves the right to vary working hours depending on operational requirements.

3.1.4 Eligibility for Part XII Protections

The provisions under Part XII of the Employment Act 1955, including overtime (3.2), rest day pay (3.3), and public holiday pay (3.4), apply to:

• All employees whose monthly wages do not exceed RM 4,000; and
• Any employee engaged in manual labour, regardless of monthly wages.

"Wages" for this purpose includes basic salary and all fixed monthly cash allowances as stated in Section 4.1.2.

3.2 Overtime Policy

3.2.1 Definition of Overtime

Any work performed beyond the employee's normal working hours shall be considered overtime and must be approved in advance by the immediate superior.

3.2.2 Eligibility

Employees who are eligible under Part XII of the Employment Act 1955 (i.e. employees earning RM 4,000 or below per month or engaged in manual labour) shall be compensated for overtime in accordance with statutory provisions.

Employees who are not eligible under Part XII may be required to work beyond normal working hours as part of their role. Such additional work shall be governed by the terms of their employment contract and may be deemed included in their remuneration package unless otherwise agreed.

3.2.3 Overtime Rates (For Eligible Employees)

Overtime shall be compensated at the statutory rates prescribed under the Employment Act 1955:

• 1.5 times the hourly rate on normal working days
• Rest days and public holiday work shall be compensated in accordance with the statutory provisions outlined under the Rest Days, Off Days, & Public Holidays section of this Handbook

3.2.4 Overtime Limit

The total overtime worked shall not exceed 104 hours in any 1 month, unless otherwise permitted by law.

Employees shall not be required to work more than 12 hours in any 1 day, except in circumstances permitted under the Employment Act 1955 (e.g. emergencies or urgent operational necessity).

3.2.5 Overtime Claims

All overtime must be properly recorded and submitted in accordance with the Company’s procedures for verification and payment. 

3.2.6 Management Rights

The Company reserves the right to revise or discontinue overtime arrangements in accordance with operational needs and legal requirements.

3.2.7 Overtime Calculation Example

If an employee earns RM 3,000 per month:

• Hourly rate = RM3,000 ÷ 26 days ÷ 8 hours
  = RM3,000 ÷ 208 hours
  = RM14.42 per hour
  
  
• Overtime rate (1.5x)
  = RM14.42 × 1.5
  = RM21.63 per hour

3.3 Rest Day, Off Days, & Public Holidays

3.3.1 Definition of Rest Day & Off Day

Off Days Recognized by the Company

The Company's official Rest Day is Sunday. To ensure smooth business operations across all branches, the Company may implement or adjust Saturday work schedules. Any alternate Saturday-off arrangements are subject to the Management discretion and may be modified based on operational requirements or departmental needs.

3.3.2 Rest Day & Off Day Pay

3.4 Public Holidays

3.4.1 General Policies

The Company provides 14 paid public holidays per calendar year to all employees.

Employees covered under Part XII of the Employment Act 1955 shall be entitled to a minimum of 11 paid public holidays in accordance with statutory requirements.

5 of the public holidays shall be:

• National Day
• Birthday of the Yang di-Pertuan Agong
• State Ruler’s Birthday / Federal Territory Day (as applicable)
• Worker’s Day (Labour’s Day)
• Malaysia Day

The remaining public holidays shall be determined and communicated by the Company prior to the commencement of each calendar year.

If a public holiday falls on a Rest Day or another public holiday, a replacement day shall be granted in accordance with the Employment Act 1955.

Where a public holiday falls during an employee’s approved sick leave or annual leave, another day shall be granted as a paid holiday in substitution.

3.4.2 Work on Public Holiday

If an employee is required to work on a public holiday:

(a) Employees covered under Part XII of the Employment Act 1955

• Shall be paid 2 days’ wages at the ordinary rate of pay for work performed within normal working hours; and
• Shall be paid at 3 times the hourly rate of pay for any overtime work beyond normal working hours.

For monthly-rated employees, the ordinary holiday pay is deemed included in the monthly salary.

(b) Employees not covered under Part XII

• Shall be compensated in accordance with their employment contract or as determined by the Company.

 Where applicable, any travelling allowance payable under the employee’s contract shall remain payable. No additional housing or meal allowance shall be payable unless otherwise provided in the contract.

Where a public holiday falls on a half working day, payment shall be based on a full working day in accordance with the Employment Act 1955.

3.4.3 Replacement Leave

The occasion may arise when the Company requires the employees to work on a public holiday, the Company may replace any other working day as the public holiday.

The Company will provide a replacement leave which shall be consumed within one (1) year.

Q : Do we need to clarify on travelling on PH for work- related?

3.5 Break Time

3.6 Attendance Recording

3.7 Lateness, Early Departure & Absenteeism

H : Employees are required to observe the Company’s prescribed working hours as stated in their employment terms.

Employees must report for work on time and be ready to commence duties at the scheduled start time. Consistent punctuality is expected and forms part of an employee’s performance and discipline standards. Any lateness, early departure, or absence during working hours must be informed to the immediate superior and supported with valid reasons. Repeated lateness or failure to comply with working hours may result in disciplinary action in accordance with Company policies.

4. Wages & Salary Administration

4.1 Salary Structure & Payment Cycle

4.1.1 Payment Terms & Methods

• Wage Period: The standard wage period is 1 calendar month.
• Payment Date: Wages will be paid no later than the 7th day of the following month.
• Payment Method: All salary payments are made via electronic bank transfer into the employee’s designated bank account. Any request for alternative payment methods must be submitted in writing and is subject to legal approval.
• Statement of Wages (Payslip): A monthly payslip will be issued to every employee detailing basic salary, allowances, overtime, and statutory deductions.

4.1.2 Definitions of Pay

To ensure clarity in calculations, the Company distinguishes between different ‘types’ of pay:

• Basic Salary: The fixed monthly amount stated in the employee’s Letter of Appointment
• Wages: For legal calculations, ‘Wages’ includes the employee's basic salary and fixed cash allowances. It excludes travel allowances, bonuses, reimbursements for work expenses, and retirement gratuities.
• Ordinary Rate of Pay (ORP): This is the specific formula used for statutory benefits like Overtime and Public Holidays (see Section 4.1.4)

4.1.3 Calculation for Incomplete Months (Prorating)

If an employee does not work a full calendar month (e.g., joining mid-month, resigning mid-month, or taking unpaid leave), the salary will be adjusted based on the actual calendar days of that month.

The Formula:

• Example (Joining in March): If your basic salary is RM 3,000 and you worked 20 days out of the 31 days in March:

4.1.4 Statutory Calculation Rates (Ordinary Rate of Pay)

In compliance with the Employment Act 1955, the Ordinary Rate of Pay (ORP) is used specifically to calculate overtime, work on rest days, public holidays, and paid leave (sick/annual leave).

• Daily ORP: For monthly-rated employees, the daily rate is calculated as:

• Hourly ORP: The Daily ORP divided by normal daily working hours.

4.1.5 Final Payment Upon Separation

• Normal Registration: All earned wages (less deductions) will be paid by the last working day.
• Termination Without Notice: If the contract is ended without notice by either party, payment of earned wages shall be made within the timelines stipulated by the Employment Act (typically on the day of termination if by the employer, or within 3 days if by the employee).

4.2 Payslip & Salary Deductions

4.2.1 Monthly Payslips

In accordance with statutory requirements, the Company will provide an itemized payslip to every employee on or before the salary payment date. This statement will include:

• Gross Salary: Basic salary and fixed monthly allowances.
• Variable Pay: Overtime (where applicable), commissions, or performance bonuses.
• Statutory Deductions: Employee's share of EPF, SOCSO, EIS, and Monthly Tax Deduction (PCB).
• Company Contributions: Employer's share of EPF, SOCSO, and EIS.
• Net Pay: The final amount credited to the employee's bank account.
  
  

4.2.2 Statutory Deductions & Rates

The Company is legally required to make deductions for EPF, SOCSO, EIS, and PCB from an employee's gross salary. These deductions are calculated based on the prevailing statutory rates set by the respective Malaysian authorities.

For the latest contribution tables and rates, employees are encouraged to refer to the official websites of KWSP (EPF), PERKESO (SOCSO/EIS), and LHDN (Income Tax).

4.2.3 Lawful Salary Deductions (Section 24 of the EA 1955)

The Company shall only make deductions from an employee's salary as permitted by law. These include:

• Recovery of Overpayments: Deductions to recover any salary overpaid in the immediate preceding 3 months due to a mistake.
• Payment in Lieu of Notice: If an employee terminates their contract without providing the required notice period (as stated in their Letter of Appointment), the Company is legally permitted to deduct an amount equivalent to the salary for the unserved notice period.
• Authorized Deductions: Deductions made at the written request of the employee (e.g., staff loans, voluntary EPF top-ups).
• Unpaid Leave: Deductions for days not worked that exceed the employee's leave entitlement.
  
  

4.2.4 Deduction Limits & Protections

• The 50% Rule: Total deductions in a single month shall not exceed 50% of the employee's wages, except in cases of final payment upon resignation or termination.
• Prohibited Deductions: The Company will not make deductions for damages to company property (e.g., lost equipment, etc.) unless the employee provides specific written consent for the incident, or it is permitted by the Labour Department.
  
  

4.3 Allowances & Reimbursements

4.3.1 Overview

This section explains the types of allowances and reimbursements available to employees.

Allowances:

• Fixed or recurring payments provided to support work-related costs or responsibilities
• Fixed cash allowances form part of wages, and subject to statutory deductions (EPF, SOCSO, tax) in accordance with applicable laws.

Reimbursement:

• Cover actual expenses incurred during the performance of work duties (also commonly known as claims)
• Proper documentation must be provided for reimbursement
• Not considered wages, and are not subject to statutory deductions

All full-time employees are eligible for allowances and reimbursements, subject to company policies and applicable laws.

4.3.2 General Policy for Allowances

Allowances are payments provided to employees to support work-related responsibilities or employment-related costs. Allowances may be paid as fixed recurring payments or based on specific employment conditions, depending on the nature of the allowance.

Allowances form part of the employee’s remuneration and are administered in accordance with company policy and applicable laws. Where required by law, statutory deductions (including EPF, SOCSO, and tax) will apply.

The type, amount, eligibility, and conditions of any allowance are determined by the company and may vary by role, job level, or operational requirements.

4.3.3 Types of Allowances

• Fixed Allowance
• • Fixed allowances are regular payments provided to employees to support ongoing work-related or living costs. These allowances are paid on a recurring basis and form part of the employee's remuneration.
  • Examples of fixed allowances may include:

• • Allowance eligible for whom???

• Performance-Based Allowance
• • Performance-based allowances are payments linked to an employee’s individual or team performance. These allowances may vary depending on the employee's achievement of specific performance criteria.
  • Eligibility and assessment are determined based on:
  • • Performance targets or key performance indicators (KPIs)
    • Evaluation periods set by the company
    • Performance reviews conducted by management or HR
  • Performance-based allowances are considered part of wages and are subject to statutory deductions where applicable.
  • Employees must achieve at least ??% of their KPIs to qualify for performance-based allowances.

4.3.4 General Policy for Reimbursement of Expenses

The company reimburses employees for approved work-related expenses incurred in the course of performing their job duties. Only expenses that are directly related to official work activities and necessary for the performance of job functions will be eligible for reimbursement.

 Employees must submit reimbursement claims in accordance with the company’s claims process and within the required timeframe. Claims are subject to review and approval by management before payment is made.

Reimbursements for work-related expenses are not considered wages and are not subject to statutory deductions.

4.3.5 Eligible Expenses

• The company may reimburse employees for reasonable and necessary expenses incurred while performing official work duties. Eligible expenses may include, but are not limited to:
  
  

• Only expenses that are directly related to official job duties and reasonably incurred will be eligible for reimbursement. All reimbursements are subject to review and approval in accordance with company procedures.

4.3.6 Submission Process

All reimbursement claims must be submitted through BrioHR in accordance with the procedures outlined below:

1. Submission Platform
   All claims must be submitted via BrioHR. Employees are responsible for ensuring that claim details are accurate and complete at the point of submission.
   
   Each employee must submit only ONE (1) claim report per month.
   
   All eligible expenses for the month must be compiled into a single claim report. Please do not submit separate claim reports for individual expenses and do not create multiple claim reports within the same month.
   
   
2. Supporting Documents
3. 1. Receipts or proof of payment are required for all claims.
   2. Where applicable, employees must obtain and attach the e-invoice issued by seller or service provider.
   3. Mileage claims do not require receipts. Instead, employees must submit the completed mileage record using the company-provided Excel template, converted to PDF, showing:
   4. 1. Point A to B
      2. Distance travelled (in kilometres)
      3. Amount claimed per trip (in RM)
         
         
4. Submission Timeline
5. 1. Claims must be submitted by the 25th of each month for expenses incurred in that month.
   2. Employees are strongly encouraged to submit claims on time and to avoid accumulating claims across multiple months, as delayed submissions may impact processing timelines and increase administrative workload for the Finance team.
      
      
6. Responsibility & Compliance
   Employees are responsible for timely submission and compliance with the claim requirements. Incomplete, duplicate, or non-compliant submissions may be rejected or returned for clarification.

4.3.7 Payment of Allowance & Reimbursement

Approved allowances and reimbursements will be processed together with the monthly payroll, unless otherwise stated.

Payments will be made via bank transfer to the employee’s designated bank account on record.

The processing and payment of allowances and reimbursements are subject to complete and accurate submission in accordance with Company policy. Claims that are submitted late, accumulated across multiple months, or require additional clarification may be processed in a subsequent payroll cycle.

4.4 Incentives

4.4.1 Purpose of Incentives

The purpose of the Incentives programme is to motivate and reward employees for exceptional performance, achievements, or contributions that go beyond normal job responsibilities.

Incentives are designed to encourage performance excellence, align individual efforts with the Company’s business objectives, and support the overall growth and success of the organisation.

Incentives are not allowances or reimbursements.

They are variable, non-fixed, and non-recurring payments, and are not guaranteed to be paid on a monthly basis. Incentives are awarded at the Company’s discretion, subject to performance outcomes, eligibility criteria, and business considerations.

4.4.2 Types of Incentives

The Company may offer various Incentive programmes to recognise and reward employee contributions. The availability, structure, eligibility criteria, and payment terms of any Incentive are subject to Company policy, performance outcomes, and business needs.

1. Performance Bonus
2. 1. Performance bonuses may be awarded to employees based on:
   2. • Individual performance
      • Team performance
      • Departmental or Company-wide results
   3. Performance assessments may take into account factors such as work quality, achievement of objectives, collaboration, and overall contribution. Performance bonuses are discretionary, non-fixed, and not guaranteed.
      
      
3. Sales Commission
4. 1. Employees in sales or performance-driven roles may be eligible for commissions based on:
   2. • Sales targets achieved
      • Revenue generated
      • Other agreed performance metrics
   3. Commission structures, rates, and payout schedules will be communicated separately and may vary by role or campaign.
      
      
5. Profit Sharing
   The Company may implement profit-sharing arrangements where eligible employees receive a portion of the Company’s profits based on defined criteria.
   
   Participation in profit-sharing programmes, including eligibility and distribution methods, will be determined by the Company and communicated as applicable.
   
   
6. Project-Based or One-Off Incentives
7. 1. Employees may be rewarded with one-off incentives for:
   2. • Completion of major projects
      • Exceptional contributions
      • Achievement of specific milestones
   3. These incentives are non-recurring and assessed on a case-by-case basis.
      
      
8. Recognition-Based Incentives
9. 1. The Company may offer recognition programmes to acknowledge employee achievements, such as:
   2. • Employee recognition awards
      • Spot rewards
      • Non-cash incentives (e.g. vouchers, gifts, tokens of appreciation)
   3. Recognition-based incentives may be awarded periodically and are subject to programme guidelines.

4.4.3 Eligibility

Eligibility for Incentive programs is determined by the Company and may vary depending on the type of incentive, role requirements, performance criteria, and business needs.

Participation in any incentive program is not automatic and is subject to management discretion, applicable terms and conditions, and any specific criteria communicated for the relevant incentive.

4.4.4 Calculation and Payment of Incentives

Incentive calculations, eligibility criteria, and payment terms will be determined by the Company and may vary by incentive type, role, and business performance. Specific details will be communicated separately. Incentives are discretionary, may be amended, deferred, or withdrawn at the Company’s discretion, and do not form part of fixed remuneration.

4.4.5 Communication and Review Process

Notification
Employees will be informed of applicable Incentive programs, eligibility criteria, and relevant terms through official company communication channels, which may include written notices, internal announcements, or individual employment-related communications. Where applicable, specific incentive details will be shared prior to or at the time the incentive is offered.

Regular Review
All Incentive programs are subject to periodic review by the Company to ensure alignment with business objectives, performance standards, and operational needs. The Company reserves the right to amend, suspend, or discontinue any incentive program at its discretion, with or without prior notice, unless otherwise required by law or expressly stated in writing.

Confidentiality
Employees are encouraged to treat information regarding their own and others’ incentives, allowances, and remuneration as confidential and share it only on a need-to-know basis.

Dispute Resolution
Any concerns or disputes regarding incentives, allowances, or performance-related rewards should be raised with your immediate supervisor or the HR department. The Company will review all matters in a fair and reasonable manner, and employees are encouraged to resolve issues internally before seeking external remedies.

4.4 Salary Review & Adjustment

4.5 Statutory Contributions (EPF, SOCSO, EIS, PCB)

4.5.1 Statutory Contributions for Employees in West Malaysia

The main statutory contributions for full-time employees include:

1. Employees Provident Fund (EPF)
2. Social Security Organization (SOCSO)
3. Employment Insurance System (EIS)
4. Monthly Tax Deduction (PCB).

Below is a detailed explanation of each contribution:

1. Employees Provident Fund (EPF)

• Mandatory Contributions: Both employers and employees are required to make contributions.
• Eligibility: Employees earning more than RM10.00 per month must contribute.
• Contribution Rates:
• • Employee's Contribution: 11% of their monthly salary.
  • Employer's Contribution: 12% of the employee's monthly salary.
• Example Calculation:
• • For a monthly salary of RM3,000:
  • • Employee's Contribution: 11% of RM3,000 = RM330.
    • Employer's Contribution: 12% of RM3,000 = RM360.

2. Social Security Organization (SOCSO)

• Purpose: SOCSO provides social security protection covering employment injuries, occupational diseases, and invalidity.
• Contribution Rates:
• • The contribution rates depend on the employee's salary group and are outlined in the Employees' Social Security Act.
  • Employers must contribute a specific percentage of the wages to SOCSO.

3. Employment Insurance System (EIS)

• Purpose: EIS offers financial assistance to employees who lose their jobs and promotes reemployment.
• Contributions:
• • Contributions are made by both the employer and employee based on a percentage of the employee's salary.
  • The contribution rates are specified under the related regulations.

4. Monthly Tax Deduction (PCB)

• Responsibility: Employers are responsible for deducting personal income tax from employees’ salaries in accordance with the Inland Revenue Board of Malaysia’s regulations.
• Calculation: The amount deducted is based on applicable tax rates corresponding to the employee's income level.

5. Leave Entitlement

5.1 Annual Leave

5.1.1 Annual Leave Entitlement

Employees are entitled to paid annual leave according to the Company’s leave schedule as follow:

5.1.2 Pro-Rated Leave for Incomplete Year of Service

Employees who have not completed a full year of service will receive annual leave on a pro-rated basis, calculated based on completed months of service.

For example, if the annual entitlement is 12 days per year, an employee earns 1 day of leave for each completed month of service.

5.1.3 Application & Approval

Annual leave must be applied for in advance and approved by the Company, subject to operational requirements.

5.1.4 Leave Expiry & Carry Forward

Unused annual leave should be taken within 12 months after the end of the leave entitlement year. Leave not taken within this period may be forfeited unless otherwise approved by the Company.

5.1.5 Leave During Sick or Maternity Leave

If an employee is on paid annual leave but becomes eligible for sick leave or maternity leave during that period, the sick or maternity leave will take priority, and the annual leave will be reinstated for use later.

5.1.6 Leave on Termination

Upon termination of employment, any earned but unused annual leave will be paid to the employee based on the normal daily rate of pay.

5.2 Sick Leave & Hospitalisation Leave

5.2.1 Sick Leave Entitlement

Employees are entitled to paid sick leave based on length of service:

Sick leave is in addition to annual leave, rest days, and public holidays.

If hospitalization is required, employees may be entitled to up to 60 days paid sick leave per year. If an employee is certified as needing hospitalization but does not undergo it for any reason, it is still considered hospitalization for leave purposes.

Hospitalization leave is included within the total sick leave entitlement. For example, an employee entitled to 14 days of sick leave who is hospitalized for 10 days will have 4 days remaining for other sick leave in that year.

5.2.2 Certification & Notification

Sick leave must be certified  by a registered medical practitioner, medical officer, or dental surgeon. Employees must notify the employer within 48 hours from the start of sick leave. Failure to certify or notify within the time frame may result in the leave being treated as unauthorized absence.

5.2.3 Sick Leave Pay

Sick leave is paid at the employee's ordinary rate of pay. For monthly-paid employees, receiving full monthly salary counts as sick leave pay.

5.2.4 Sick Leave During Maternity or Compensation Benefits

Sick leave will not be paid for periods when employees are receiving maternity allowance, temporary disablement compensation under the Workmen's Compensation Act, or Social Security temporary disablement benefits.

5.3 Maternity Leave

5.3.1 Maternity Leave Entitlement

Every female employee is entitled to:

• Maternity leave of at least 98 consecutive days for each childbirth.
• Maternity allowance (payment in lieu of wages) for up to a maximum of 5 surviving children, subject to statutory eligibility requirements.

Exception:

• If the employee has 5 or more surviving children at the time of childbirth, she is entitled to maternity leave, but maternity allowance will not be payable.
  
  

5.3.2 Eligibility for Maternity Allowance

To receive maternity allowance, the employee must:

• Have worked for the company for at least 90 days in total during the 9 months before childbirth, and
• Have been employed by the company at any time in the last 4 months before childbirth.

Example:

If the expected delivery date is 31 December:

• The employee worked 1 April – 30 June (90 days in total) → ✅ meets the first rule
• The employee also worked at least 1 day between 1 September – 31 December → ✅ meets the recent employment rule

Both conditions must be met to qualify for maternity allowance.

5.3.3 Maternity Leave Pay

Eligible employees receive either:

• Their normal daily pay, or
• The rate set by the Ministry of Human Resources, whichever is higher

Employees paid monthly will continue to receive their usual monthly salary during maternity leave. No deductions are made for leave days.

Employees working for more than one employer cannot receive a total maternity allowance exceeding what would be payable by one employer.

5.3.4 Commencement of Maternity Leave

Maternity leave may start no earlier than 30 days before childbirth and no later than the day after childbirth.

Medical exception:
If a registered medical practitioner certifies that the employee is unable to perform her duties satisfactorily due to advanced pregnancy, the employer may require the employee to start maternity leave up to 14 days earlier than the normal 30-day period.

If an employee stops working earlier than 30 days before childbirth without medical certification:

• The extra days are not counted as maternity leave, and
• No maternity allowance is payable for those days.
  
  

Example:

• Expected delivery: 31 January
• Earliest normal leave start: 1 January
• With medical certification: Leave may start as early as 18 December.
• If the employee stops earlier than 1 January without certification, those extra days are not maternity leave and no allowance is paid.
  
  

5.3.5 Returning to Work During Maternity Leave

An employee may return to work during maternity leave with the employer’s consent and upon certification by a registered medical practitioner that she is fit to resume work.

This applies regardless of eligibility for maternity allowance.

5.3.6 Job Protection During and After Pregnancy

The employee will not be terminated or given notice of termination on the grounds of pregnancy or illness arising from pregnancy.

The employee cannot be terminated during maternity leave.

Where the employee is medically unfit to return to work after maternity leave due to a pregnancy- or childbirth-related illness certified by a registered medical practitioner, the employee will not be terminated for up to 90 days after the end of maternity leave.

Exception: Termination may occur only in limited circumstances permitted by law, such as the closure of the employer’s business.

5.3.7 Maternity Allowance – Special Payment Arrangements

Nomination of Recipient
The employee may nominate another person to receive maternity allowance on her behalf.

Any payment made to the nominated person will be treated as payment made to the employee.

Maternity Allowance in the Event of Death
In the unfortunate event that the employee dies during her maternity leave, any maternity allowance due will be paid to the person she nominated or, if no nominee exists, to her legal representative.

5.3.8 Notification Requirements for Maternity Allowance

The employee must notify the employer of her pregnancy and the intended start date of maternity leave at least 60 days before expected delivery.

If the employee is about to leave employment and knows she may give birth within 4 months, she must notify the employer before leaving to remain eligible for maternity allowance.

If the employer provides free medical treatment, the employee is expected to attend necessary medical check-ups. Failure to do so may result in a deduction of up to 7 days of maternity allowance.

Notice can be given in writing or orally, including to a supervisor or person designated by the employer.

Minor errors or delays in notice do not automatically affect eligibility, especially if the employee had a reasonable cause.

Nothing in this policy shall reduce or remove any statutory maternity rights provided under the Employment Act. Where there is any inconsistency, the Employment Act shall prevail.

5.4 Paternity Leave

Male employees shall be entitled to paternity leave in respect of each confinement and restricted to the following condition:

i. Married

ii. Has been employed by the company at least 12 months immediately before the commencement leave and

iii. Notified the Company of the pregnancy of his spouse at least 30 days from the expected confinement or as early as possible after the birth.

To qualify for paternity leave, the employee must present the birth certificate of his child. The consecutive days shall include off day (s), rest day (s) and public holiday (s). The employee shall obtain necessary approval from the Company if he chooses to postpone or delay the commencement of paternity leave.

5.5 Compassionate / Emergency Leave

The Company shall grant compassionate leave to the employees on the following occasions:

 To qualify for compassionate leave, the employee must present documentary evidence.

The company will also give a donation of RM500 to the affected employee. If an employee is found to have obtained compassionate leave through fraudulent information, disciplinary action will be taken.

H : An employee may be granted emergency leave for the purpose of attending to unforeseen domestic emergencies requiring his/her personal attendance. The granting of such leave of absence shall be considered on the merit of each case and shall be deducted from employee’s annual leave entitlement. The employee shall inform the company at the earliest opportunity of the emergency.

Upon returning to work, the employee must submit evidences of the emergency and apply the leave in the system on the same day.

The Company shall at its discretion call upon the employee to provide further substantiating evidence relating to such emergency leave. Failure to provide such evidence may result in the Company considering the employees as absent from work.

5.6 Unpaid Leave

H : No pay leave may be granted at the sole discretion of the Management. It is granted to an employee only when he/she has fully utilised his/her annual leave and there is a valid and urgent reason to apply such leave. Employees applying for no pay leave are reminded to do so at least three (3) days in advance.

It is also the employee’s responsibility to check the status and ensure the leave application is approved before going on leave. During the period of no pay leave, all employment entitlements and benefits are suspended.

Employees on the probationary period who are not able to utilise their annual leave yet may be allowed to apply for no pay leave at the discretion of the Management.

5.7 Study / Exam Leave/Sabbatical (if applicable)

Leave requests lasting one month or more are consideration as sabbatical leave. Sabbatical leave may be granted to employees at the discretion of the Company, contingent upon valid reasons presented by the employee. The employee’s service is deemed inactive and the employee is ineligible for any associated benefits for the duration of this leave.

5.8 Leave Application & Approval Process

6. Employee Benefits

KIAN Group of Companies is committed to safeguarding the health and welfare of its employees by providing the following medical benefits:

6.1 Clinical Visit Benefit

Employees are entitled to reimbursement for clinical visits for outpatient medical to registered medical practitioners. The benefit is calculated on a prorated basis for the year of joining and applies for each completed year of service.

The reimbursement of medical expenses will be credited to the employee's end-month payroll.

The Company will not cover any additional cost incurred beyond the limit given. The employee will need to present the original receipt/invoice. For part time and contract employee, the medical benefit shall reflect as per initial terms & condition of Employment Contract.

6.2 Group Personal Accident (GPA)

All employees are covered 24 hours under the Company’s Group Personal Accident Insurance for accidents resulting in disability (temporary or permanent) or death.

The sum insured as follows:

Employees will be covered up to the age of 64 years old under the Group Personal Accident (GPA) Insurance. This may extend to the maximum of age 70 years old if the employee remains in employment.

For contract employee, the Group Personal Accident (GPA) Insurance benefit shall reflect as per initial terms & condition of Employment Contract.

The Company reserves the right to change, alter, modify, add, or remove any insurance partner or employee benefits at its sole discretion. Employees will be notified of such changes in a timely manner, but the Company is not obligated to maintain any benefit or insurance arrangement indefinitely.

6.3 Group Hospitalisation & Surgical (GHS)

Employees are covered under the Company’s Group Hospitalisation & Surgical (GHS) Insurance for any hospitalization caused by accidental injury, illness or disease during their course of employment.

The GHS covers upon confirmation of employment. It covers 24-hour basis, and the coverage is extended both domestically and internationally (for business related as long as not exceeded than 90 days).

The sum insured as follows:

 Employees will be covered up to the age of 64 years old under the Group Hospitalisation & Surgical (GHS) Insurance. This may extend to the maximum of age 70 years old if the employee remains in employment.

This benefit is only entitled to the employee (not to spouse and/or children).

For part time and contract employee, the Group Hospitalisation & Surgical (GHS) Insurance benefit shall reflect as per initial terms & condition of Employment Contract.

The Company reserves the right to change, alter, modify, add, or remove any insurance partner or employee benefits at its sole discretion. Employees will be notified of such changes in a timely manner, but the Company is not obligated to maintain any benefit or insurance arrangement indefinitely.

6.4 Staff Purchase / Company Privileges

6.5 Wellness & Employee Assistance Programme (if applicable)

6.6 Claims & Reimbursement Policy

7. Code of Conduct & Ethics

7.1 Professional Behaviour & Integrity

7.2 Conflict of Interest

7.3 Confidentiality & Data Protection

7.4 Gifts, Entertainment & Anti-Bribery Policy

7.5 Use of Company Property & Assets

7.6 Social Media & Public Representation

8. Workplace Rules & Policies

8.1 Dress Code & Personal Grooming

H : No specific ground rules by EA.

Employees shall maintain a professional, neat, and presentable appearance at all times while at work or representing the Company.

Attire must be clean, modest, and appropriate for a corporate working environment.

Personal grooming, including hygiene, hair, and overall appearance, must be well maintained at all times.

Clothing or accessories that are offensive, overly casual, revealing, or may create a safety risk are strictly prohibited.

Employees are required to comply with any role-specific, safety, or site-related dress requirements as determined by the Company.

8.2 Workplace Safety & Housekeeping

8.3 Smoking, Alcohol & Substance Abuse

8.4 Harassment, Discrimination & Bullying (Zero Tolerance)

8.5 Violence-Free Workplace

8.6 Visitors & Security Procedures

9. Health, Safety & Environment (HSE)

9.1 Occupational Safety & Health Policy (OSHA 1994)

9.2 Employee Responsibilities on Safety

9.3 Accident Reporting & Incident Management

9.4 Emergency Procedures & Evacuation

9.5 First Aid & Medical Emergencies

10. Performance Management

10.1 Performance Appraisal System

10.2 Key Performance Indicators (KPIs)

10.3 Training & Development

10.4 Coaching, Mentoring & Feedback

11. Disciplinary Procedures

11.1 Misconduct & Poor Performance

11.2 Progressive Discipline Process

11.3 Domestic Inquiry

11.4 Suspension Pending Investigation

11.5 Disciplinary Actions & Penalties

12. Grievance Handling

12.1 Employee Grievance Policy

12.2 Reporting Channels

12.3 Investigation & Resolution Process

12.4 Non-Retaliation Assurance

13. Separation from Employment

13.1 Resignation & Notice Period

13.2 Termination of Employment

If an employee has a job contract that lasts more than one month, the employer must give the employee a written agreement. This written contract must clearly state how the employment can be ended (termination) by either the employer or the employee.

If your contract has a specific end date, it will end when that date arrives or when the job is completed. However, if the contract does not have a set end date, it will continue until one side (employer or employee) decides to terminate it following the rules in the law.

13.2.2 Notice of Termination of Contract

Both the employer and employee must give a written notice to end the contract. The minimum notice period varies based on how long the employee has worked:

• Less than 2 years: 4 weeks' notice (1 month)
• 2 to 5 years: 6 weeks' notice (1.5 months)
• More than 5 years: 8 weeks' notice (2 months)

13.2.3 Termination Notice Requirements and Conditions

Both the employer and the employee can choose to give up their right to a notice before termination if they agree to do so.

If an employee is let go for specific reasons related to the business, they must be given a notice of termination. The reasons are as follows:

• Business Closure: If the employer has stopped or plans to stop the business for which the employee was hired.
• Location Closure: If the employer has stopped or plans to stop operating at the location where the employee works.
• Diminished Work Needs: If the business no longer needs the employee to do the job they were hired for, or if the need is expected to decrease.
• Diminished Work Needs at Specific Location: If the need for the employee’s role at their specific work location has ceased or is expected to lessen.
• Refusal to Transfer: If the employee refuses to move to a different workplace, unless their contract says they must accept such a transfer.
• Change of Business Ownership: If the ownership of the business changes (whether through sale or legal change), affecting the employee's position.

The employer must provide a written notice of termination to the employee. The length of this notice must be at least the minimum required by law, which varies based on the employee's duration of service.

The notice can be given at any time, and the day the notice is provided counts as the start of the notice period.

13.2.4 Termination of Contract Without Notice

1. Termination with Payment
Either the employer or the employee can end the employment contract without giving the required notice. Instead of waiting for the notice period to finish, the party terminating the contract must pay the other party an amount equal to the wages they would have earned during that notice period.

2. Termination for Breach of Contract
If one side (either the employer or employee) intentionally breaks a major rule or condition of the contract, the other side can also terminate the contract immediately without giving notice. This means if something serious happens that goes against the agreed terms, the affected party can end the contract right away.

The employer can:

• Dismiss Without Notice: Fire the employee immediately without giving notice.
• Downgrade the Employee: Reduce the employee's position or responsibilities.
• Other Punishments: Impose a lighter penalty they see fit, such as a suspension without pay, which cannot last longer than two weeks.

Examples of misconduct:

• Theft or Fraud: Stealing company property or engaging in dishonest behaviour.
• Violence or Threats: Physical violence or verbal threats against coworkers or management.
• Harassment: Any form of harassment, including sexual harassment or bullying.
• Substance Abuse: Being under the influence of drugs or alcohol while at work.
• Insubordination: Refusal to follow reasonable instructions from supervisors.
• Gross Negligence: Significant failure to perform job duties, leading to harm or damage.
  
  

3. Suspension During Enquiry
While the investigation is ongoing, the employer can suspend the employee for up to two weeks. During this suspension, the employee must receive at least half of their wages. If the investigation finds that the employee did not misbehave, they must be paid the full wages that were withheld.

4. Employee’s Right to Terminate
An employee has the right to quit their job immediately without notice if they or their family are in immediate danger from violence or health risks that they did not agree to take on in their job.

5. Breaking the Employment Contract

When an employment contract is said to be "broken," it means that one party (either the employer or the employee) has failed to fulfill their obligations as outlined in the contract. This can occur in several ways:

1. For the Employer: If the employer does not pay the employee's wages as agreed, the contract is considered broken. This failure to pay is a significant violation of the contract terms.
2. For the Employee: The employee is considered to have broken their employment contract if they are absent from work for more than two consecutive working days without asking for leave or without a good reason, unless they inform the company as soon as they reasonably can.

Breaking an employment contract can lead to various consequences, such as the potential for legal action, loss of employment, or financial penalties (like the need to pay in lieu of notice). It's important for both parties to adhere to the terms of the contract to maintain a healthy working relationship.

13.3 Retirement

13.4 Redundancy & Retrenchment

13.4.1 General Principle

The Company strives to provide stable employment; however, business circumstances or restructuring may occasionally result in redundancy. In such events, the Company is committed to a fair separation process in full compliance with the Malaysian Employment Act 1955 and relevant labour regulations.

13.4.2 Notice of Termination

Employees affected by redundancy will be provided with the notice period specified in their Letter of Appointment. The Company reserves the right to pay basic salary in lieu of such notice to effect an immediate separation where necessary.

13.4.3 Statutory Retrenchment Benefits

For employees covered under the Employment Act 1955, the Company provides termination benefits as prescribed by the Employment (Termination and Lay-Off Benefits) Regulations 1980. These are calculated based on your length of service:

Note 1: For the purpose of this calculation, "wages" refer to the employee's basic salary and fixed cash allowances as defined in Section 4.1.2.

Note 2: Calculations for incomplete years will be done on a pro-rata basis to the nearest completed month.

13.4.4 Exclusions

In accordance with the law, statutory termination benefits are not applicable if the employee is terminated under the following circumstances:

• Dismissal due to Misconduct following a domestic inquiry;
• Retirement upon reaching the retirement age specified in the Letter of Appointment or by law; or
• Voluntary Resignation by the employee.
  
  

13.4.5 Non-EA Employees

For employees not covered by the Employment Act (typically those earning above RM 4,000 per month who are not in manual labour), retrenchment benefits — if any— will be governed strictly by the terms and conditions stated in their individual Letter of Appointment.

13.5 Exit Interview

13.6 Clearance & Return of Company Property

14. Confidentiality & Intellectual Property

14.1 Confidential Information

14.2 Intellectual Property Rights

14.3 Non-Disclosure Obligations

14.4 Post-Employment Obligations

15. Information Technology & Data Usage

15.1 IT Acceptable Use Policy

15.2 Email, Internet & System Usage

15.3 Cybersecurity & Data Protection (PDPA 2010)

15.4 Monitoring & Compliance

 16. Whistleblowing Policy

16.1 Purpose & Scope

16.2 Reporting Mechanism

16.3 Protection of Whistleblowers

16.4 Investigation Process

17. Amendments & Management Rights

17.1 Right to Amend Policies

17.2 Interpretation of the Handbook

17.3 Non-Contractual Clause

18. Acknowledgement by Employee

18.1 Employee Declaration

I, ___________________________________ NRIC/Passport : _____________________________ have read and understood the contents and hereby acknowledge receipt of the KIAN/Lynch Pin Holdings Sdn Bhd’s Employee Handbook. I agree to abide by the terms and conditions of my employment herein, including any amendments, addition or modified terms and conditions.

Signature       :

Designation   :

Company       :

Date               :

Note : The Management/Company reserves the right to amend , add, modify/or delete the contents of the Employee Handbook from time to time as its absolute discretion. Please sign and return this acknowledgement page to your respective People personnel immediately.