6.1 Legislation in brief
The key industrial relations statutes are the Trade Unions Act (which recognises freedom of association and representation for all employees) and the Industrial Relations Act (which regulates the relations between employers and employees and their trade unions).
6.2 Role of trade unions
The major function of trade unions in Malaysia is to negotiate terms for collective agreements. The conduct and affairs of trade unions are highly regulated, and trade unions must be properly registered in order to enjoy the rights, immunities or privileges conferred under the Trade Unions Act.
6.3 Collective agreements
In Malaysia, collective bargaining is voluntary and applies only in the private sector. Every collective agreement must be jointly deposited by the parties with the Registrar of the Industrial Court within 30 days of the date on which it was entered into.
6.4 Industrial action and disputes
In general, industrial actions are dealt with under the Industrial Relations Act, which provides for a variety of dispute resolution procedures. The Department of Industrial Relations operates a conciliation mechanism which is successful in resolving most disputes. Where conciliation is not successful, matters are referred to arbitration.