What is a Industrial Court? Is it the same as Labour Court?

What is a Industrial Court? Is it the same as Labour Court?

Industrial Court is not the same as Labour Court.

A Labour Court, as it name suggests, is NOT a court per se. The Labour Court is usually situated at the Labour Department (Jabatan Tenaga Kerja). It is a small room where hearing of disputes between an employer and employee(s) are conducted. Below is the distinction between the Labour Court and the Industrial Court:

What can I claim at the Labour Court?

The claims shall be one under the Employment Act 1955 ("EA 1955"). Examples of claims including unpaid wages, unpaid OT, unpaid rest day pay, unpaid holiday pay and unpaid sick leave pay. Apart from claims relating to unpaid payments, the Labour Court hears claims on dismissal (usually dismissal for misconduct) under Section 14 of the EA1955. Below is Section 14 of EA1955 reproduced for your reference:

Termination of contract for special reasons

14. (1) An employer may, on the grounds of misconduct inconsistent with the fulfilment of the express or implied conditions of his service, after due inquiry—

(a) dismiss without notice the employee;

(b) downgrade the employee; or

(c) impose any other lesser punishment as he deems just and fit, and where a punishment of suspension without wages is imposed, it shall not exceed a period of two weeks.

(2) For the purposes of an inquiry under subsection (1), the employer may suspend the employee from work for a period not exceeding two weeks but shall pay him not less than half his wages for such period:

Provided that if the inquiry does not disclose any misconduct on the part of the employee the employer shall forthwith restore to the employee the full amount of wages so withheld.

(3) An employee may terminate his contract of service with his employer without notice where he or his dependants are immediately threatened by danger to the person by violence or disease such as such employee did not by his contract of service undertake to run.

How long does a claim at the Labour Court to settle/close?

Usually 1-3 months

What can the Labour Court grant me at the hearing?

termination benefits
wages in lieu of notice
wages in lieu of annual leave

However, unlike an Industrial court, a Labour Court cannot order an employee to be reinstated.

Do I need a lawyer to represent me at the Labour Court?

The EA1955 is silent on whether a lawyer is allowed to represent an employee or an employer in a hearing at the Labour Court.

Since a Labour Court is technically not a "court", who hears the matter then?

The Labour Officer (pegawai JTK) hears the matter.

What if I am not happy with the Labour Court decision?

Any party that is dissatisfied with the Labour Court's decision may make an appeal to the High Court.

What can I claim at the Industrial Court?

The claims made at the Industrial Court are those that fall under the Industrial Relations Act 1967, including:

• Trade Union grievances

• Trade Union disputes

• Unjust dismissal

Generally, if the Industrial Court has made its findings that you have been dismissed without just cause or excuse, the Industrial Court could grant you reinstatement or compensation in lieu of reinstatement, whichever it thinks fit.

How long does it take for the Industrial Court to settle a dispute?

minimum 2 years

Do I need a lawyer to represent me at the Industrial Court?

Generally, you do not need a lawyer to represent you at the Industrial Court. However, if you wish to be represented by a lawyer, you will need the permission of the Industrial Court.

What if I am not happy with the Industrial Court decision?

Awards (the term for "decision" at the Industrial Court) of the Industrial Court are FINAL and cannot be appealed. The only avenue is to request to the High Court for judicial review.