The Collective Employment Agreement is a fundamental industrial relations instrument in Malaysia, required when a company engages in collective bargaining with a recognized trade union. It must comply with the Industrial Relations Act 1967, Employment Act 1955, and other relevant Malaysian legislation. This agreement is typically used when a union has achieved recognition and seeks to formalize employment terms for its members. The document covers essential aspects including compensation, working conditions, benefits, dispute resolution procedures, and other employment terms. It requires registration with the Industrial Relations Department and typically remains valid for a specified period (usually 3-5 years). The agreement provides a framework for maintaining harmonious industrial relations while ensuring fair treatment and clear expectations for all parties involved.
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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 union and brief history of negotiations
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope and Duration: Coverage of the agreement, including categories of employees covered and duration of the agreement
5. Recognition and Union Rights: Formal recognition of the union and specified union rights within the workplace
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 Remuneration: Basic salary structures, increments, bonuses, and other financial benefits
9. Leave Entitlements: Annual, sick, maternity/paternity, and other types of leave
10. Medical Benefits: Healthcare coverage and medical benefits provided to employees
11. Social Security and Insurance: SOCSO, EPF, and other mandatory social security provisions
12. Discipline and Grievance Procedures: Procedures for handling disciplinary issues and employee grievances
13. Termination of Employment: Conditions and procedures for employment termination
14. Industrial Relations: Procedures for dispute resolution and industrial action
15. General Provisions: Miscellaneous terms including amendment procedures and savings clause
16. Execution: Signing provisions and witness requirements
1. Shift Work Provisions: Detailed regulations for shift work, applicable for manufacturing or 24-hour operations
2. Housing and Transportation: Terms regarding employee accommodation and transport, relevant for remote work locations or specific industries
3. Training and Development: Provisions for employee skill development and career progression
4. Production Incentives: Performance-based incentive schemes, particularly relevant for manufacturing sectors
5. Safety and Health Committee: Establishment and functions of safety committee, essential for high-risk industries
6. Foreign Workers Provisions: Special terms applicable to foreign workers, if employed
7. Intellectual Property Rights: IP provisions for knowledge-based industries or research organizations
8. Remote Work Policies: Guidelines for remote working arrangements, relevant for modern office environments
1. Schedule 1 - Salary Scales: Detailed salary scales for different employee grades and positions
2. Schedule 2 - Allowances and Benefits: List of all allowances, benefits, and their qualifying criteria
3. Schedule 3 - Job Classifications: Comprehensive list of job titles and their classifications
4. Schedule 4 - Disciplinary Procedures: Detailed steps and procedures for disciplinary actions
5. Schedule 5 - Grievance Procedures: Step-by-step grievance handling procedures
6. Schedule 6 - Performance Evaluation: Performance assessment criteria and procedures
7. Appendix A - Company Policies: Referenced company policies that form part of the agreement
8. Appendix B - Forms and Templates: Standard forms for grievances, leave applications, etc.
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