The Collective Agreement Contract is a fundamental industrial relations instrument in Malaysia, required when an employer and a registered trade union agree to formalize their employment relationship. This document, governed by the Industrial Relations Act 1967 and related Malaysian legislation, serves as a comprehensive framework for workplace relations, employee rights, and organizational policies. It becomes necessary when a trade union has been accorded recognition and both parties have successfully negotiated terms through collective bargaining. The agreement typically remains valid for a specified period (usually 3-5 years) and must be registered with the Industrial Relations Department to be legally binding. It includes crucial provisions on wages, working conditions, benefits, and dispute resolution procedures, while ensuring compliance with Malaysian employment laws.
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1. Parties: Identification of the employer and the trade union representing the employees
2. Background: Context of the agreement, including recognition of the trade union and scope of representation
3. Definitions: Key terms used throughout the agreement, including categories of employees covered
4. Scope and Duration: Coverage of the agreement and its effective period
5. Recognition and Union Rights: Details of union recognition and facilities provided to union representatives
6. Management Rights: Rights reserved for management in directing operations and workforce
7. Working Hours and Overtime: Standard working hours, shift patterns, and overtime arrangements
8. Wages and Benefits: Basic salary structures, increments, bonuses, and other monetary benefits
9. Leave Entitlements: Annual, sick, maternity, and other types of leave
10. Medical Benefits: Healthcare coverage and medical treatment provisions
11. Safety and Health: Workplace safety measures and health protection requirements
12. Disciplinary Procedures: Process for handling misconduct and disciplinary actions
13. Grievance Procedures: Mechanism for addressing employee grievances
14. Termination and Retrenchment: Procedures for employment termination and workforce reduction
15. General Provisions: Miscellaneous terms including amendment procedures and savings clause
1. Training and Development: Used when specific training programs or career development paths are offered
2. Production Incentives: Include when the company has specific productivity-based reward systems
3. Housing and Transportation: Required when the company provides accommodation or transport benefits
4. Shift Work Provisions: Necessary for companies operating multiple shifts
5. Foreign Workers: Include when the workforce includes foreign workers requiring specific provisions
6. Technology and Automation: Used when addressing impact of technological changes on workforce
7. Environmental Compliance: Include for industries with significant environmental considerations
8. Intellectual Property Rights: Required for knowledge-based industries or R&D operations
1. Schedule 1 - Salary Scales: Detailed salary scales for different employee categories and grades
2. Schedule 2 - Allowances and Benefits: List of all allowances, benefits, and their computation methods
3. Schedule 3 - Job Classifications: Description of job categories and their respective grades
4. Schedule 4 - Overtime Rates: Detailed overtime rates for different types of overtime work
5. Schedule 5 - Bonus Structure: Formula and conditions for bonus payments
6. Appendix A - Disciplinary Procedures: Detailed steps and processes for disciplinary actions
7. Appendix B - Grievance Form: Standard form for filing grievances
8. Appendix C - Safety Regulations: Specific safety rules and procedures
9. Appendix D - Training Programs: Details of available training programs and eligibility criteria
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