CHAPTER 1
INTRODUCTION
AGR255
LEGAL, ETHICAL AND SOCIAL ISSUES IN
PLANTATION
▪ At the end of the chapter, students should
Course Learning be able to:
Outcomes ▪ to explain the importance of legal
issues in plantation
▪ to identify the Code of Conduct for
industrial harmony between
employers and employees
Who is employer, employee and employment????
▪ EMPLOYER?
▪ Employer is a person or institution that hires employees or workers.
▪ Employers offer wages or a salary to the workers in exchange for
the worker's work or labour.
▪ EMPLOYEES?
▪ A person who is hired to provide services to a company on a regular
1. Managers, agent basis in exchange for compensation
or person ▪ A person contributes labour and expertise to an employer and is
responsible for the A statutory authority usually hired to perform specific duties which are packaged into a
payment of wages is a body set up by
law which is job
to the employee. authorized (diberi
2. Any groups of kuasa) to enact
▪ EMPLOYMENT?
(gubal) legislation on
persons whether behalf of the relevant
not statutory, country or state. ▪ is a contract between two parties, one being the employer and the
government, or other being the employee.
statutory bodies
▪ Industrial relations is also known as employee or employment
relations that refers to the management of employee welfare
and internal communications.
▪ The rights and obligations of employers and employees differ
depending upon whether the workers belong to a trade union
or not.
▪ Once workers unionise (join a trade union), they have a
collective relationship with their employer. The union will
Industrial represent the workers and speak on their behalf to the
Relations & employer when necessary.
Employment Law ▪ Commonly people work in organization have different
organizational characteristics depending on the organizations
size, whether work in the private or public sector, manufactures
of goods or providers of a service.
▪ The practices, policies, attitudes and values are differing
variables in an organization’s environment which affect the
type of industrial relations system it has.
Importance of harmonious industrial
relations
▪ In order to keep the harmonious
Industrial Relation between both
parties (Employer & Employee)
then it is needed to understand
the both parties right and
obligations under the laws
governing industrial relation.
Unilateral • The management will made the decisions on behalf of the
employer without any interference by the workers or any other
party.
Industrial
▪ Nearly all industrial relations
Relations
• System are Tripartite
Occurs when the employees or workers are not organise into
trade unions.
systems are tripartite (made up
Bilateral • However, when the workers organise themselves into trade
of 3 parties): unions the workers have some right to participate in such
▪ The employer; decision making.
▪ The employees; and Tripartite • In Malaysia, our government plays a role in drafting labor law
and presenting to Parliament.
▪ The government. • Before such laws are presented to Parliament, there involves
tripartite discussions; employers, unions representing the
▪ The rules and regulations on employees and the government – they will sit together to agree
compensation, workers’ right, on what laws or amendments when necessary
discipline and duties • The discussion will be held through National Labor Advisory
Council (NLAC) consist of representatives from each these 3
performance of employees can sectors –
be made in these 3 ways; • 14 representatives for the workers consists of workers’
organization – Malaysian Trades Union Congress (MTUC)
unilateral, bilateral or tripartite
& Congress of Unions of Employees in the Public and Civil
system. Service (CUEPACS)
• 14 representatives for the employers consists of Malaysian
Employers Federation (MEF) and;
• 12 representatives for the government and chairs by
Minister of Human Resources
• The council meets at least twice a year
Employment Legislation
Legal Issues related to laws and regulations.
issues
What is Legal,
A problem or situation that requires a
Ethical & Social Ethical person or organization to choose between
Issues in issues alternatives that must be evaluated as right
(ethical) or wrong (unethical).
Plantation?
Social A social issue is a problem that influences a
considerable number of the individuals
issues within a society.
Workmen's Compensation Act
1952 (Revised 1982) (Act 273)
Labor issues Employee's Social Security Act
1969 (Act 4)
Employees Provident Fund Act
1991 (Act 452)
Children and young persons
Employment Act 1966 (Revised
1988) (Act 350)
LEGAL ISSUES Employment Act 1955 (Revised
IN 1981) (Act 265)
PLANTATION
Foreign workers in plantation
sector
Occupational Health and Safety
Environmental Act 1994
issues Roundtable on Sustainable Palm
Oil (RSPO)
Malaysian Sustainable Palm Oil
(MSPO)
Social issues
Trade Union Act 1959
1.1 Importance of Legal Issues in Plantation
Provides minimum protection to employees with regard to their terms and conditions of
service consisting of working hours, wages, holidays, retrenchment benefits, etc.
Provides payment of compensation for injuries sustained in accidents during
employment. In general, this Act covers foreign workers who are legally employed in
this country.
Provides regulations to secure the safety, health and welfare of persons at work against
risks to safety or health arising out of the activities of persons at work and providing
industrial codes of practices to maintain or improve the standards of safety and health.
Provides regulations to protect children and young persons who are engaged in
employment in terms of working hours, type of work, abuse and etc.
1.2 Code of Conduct for Industrial Harmony
1975 (CCIH)
Was endorsed in 9th February 1975
An agreement enacted between:
• Ministry of Labour and Manpower (Now known as Ministry of Human Resources) and
• Malaysian Council of Employers’ Organizations (Now known as Malaysian Employers
Federation) and
• Malaysian Trades Union Congress (commonly known as MTUC)
Its Intention? – “To maintain a healthy practice in the employment industry”
Its Aim? – “To lay down principles and guidelines to employers and workers on
the practice of industrial relations for achieving greater industrial harmony”
The Code provides useful guidelines in the area of
industrial relations practice. There is no legal
obligation on the part of the employer to adhere to
the contents of the Code. However, the Code has
been given its legal “teeth” by virtue of sec 30(5A)
of the Industrial Relations Act 1967. It states:
“In making its award, the Court may take into
consideration any agreement or code relating to
What the law employment practices between organisations,
representative of employers and workmen
states respectively where such agreement or code has
been approved by the Minister.”
Where an employer does not follow the
procedures set out in the Code, the employer in fact
commits an unfair labour practice. Failure to
follow the Code can result in a retrenchment being
declared an unfair dismissal.
Contents of the code
1. Responsibilities of employers, employees and trade union
2. Employment policy – terms and conditions of employment
contract
3. Collective bargaining – between employers and employees
union
4. Communication and consultation – the settlement of
grievances and disputes
Purpose of CCIH
To avoid from taking unilateral action regarding any industrial
disputes.
To resolved all differences, grievances, and disputes are dealt with the
procedures of collective agreements, or where there are no
agreements, by negotiation, conciliation and arbitration.
To ensure all matters in disputes are dealt by proper methods such as
negotiation, conciliation and arbitration.
To promote constructive and positives cooperation in the industry and
to take of agreements mutually accepted.
To educate managements and workers of their responsibility to each
other’s.
Further actions the employers Further actions the employee
agreed not to: or trade union agreed not to:
Interferences with the affairs of a trade union Negligence of duty
and the rights of the workers to form or
organized union activities.
Damaging the company’s property
Discrimination against any worker because of
legitimate trade union activities.
Insubordination /disobedience
Abuse of authority or power in any form.
Interference with or disturbance to normal
working hours.
1) DEFINE THE TERM
“INDUSTRIAL RELATIONS”
2) WHO ARE THE PARTIES
INVOLVED IN AN
QUIZ 1 INDUSTRIAL RELATIONS
SYSTEM?
3) WHAT ARE THE PURPOSE OF
CCIH?
