Freedom of Association
Database 2024

Freedom of Association
Indicator
Freedom of Association
Countries
LRI 2024
heatmap

Malaysia

Freedom of Association Indicator

The Labour Rights Index 2024 (LRI 2024) is a de-jure index covering 145 economies and structured around the working lifespan of a worker. In total, 46 questions or evaluation criteria are scored across 10 indicators. The overall score is calculated by taking the average of each indicator, with 100 being the highest possible score. The Index uses a rating system, ranging from “Total Lack of Decent Work” to “Decent Work”. The Labour Rights Index aims at an active contribution to the Sustainable Development Goals, by providing necessary (complementary) insights into de jure provisions on issues covered in particular by SDG8 (Decent Jobs), SDG 5 (Gender Equality), SDG 10 (Reduced Inequalities) and SDG 16 (Strong Institutions). The Index is based on national labour legislation, applicable on 1 January 2024.

Malaysia’s overall score is 58.5 out of 100. The overall score for Malaysia is lower than the regional average observed across South East Asia (65). Within the South East Asian region, the highest score is observed for Viet Nam (77.5).

Malaysia ratified Convention No. 98 on the Right to Organise and Collective Bargaining in 1961 but has not ratified Convention No. 87 on Freedom of Association and Protection of the Right to Organise (1948).

Labour Rights Index 2024

58.5/100

LRI Country Score

0/100

Freedom of Association Indicator

8.70 %

Trade union density rate (%)

0.4 %

Collective bargaining coverage rate (%)

5.59

SDG indicator 8.8.2

5

ITUC Global Rights Index 2024 Ratings

Question

Answer

Score

Legal Basis

More Info

Does the law allow workers to form and join unions of their own choice?

No

0

§10 of the Federal Constitution of Malaysia 1957; §27 of Trade Union Act 1959; Industrial Relations Act 1967

A

Does the law allow workers to bargain collectively with employers through their representative unions?

No

0

§9 & 13-17 of the Industrial Relations Act 1967; CEACR C98 Obs. 2022; ITUC Global Rights Index 2024 (Malaysia Profile)

B,C

Does the law provide for the right to strike?

No

0

§25A of the Trade Union Act 1959; §38-50 of the Industrial Relations Act 1967; CEACR C98 Obs. 2022

A,B

Does the law prohibit imposing of excessive sanctions against striking workers?

No

0

§46 of the Industrial Relations Act 1967; ITUC Global Rights Index 2024 (Malaysia Profile)

A,C

Textual sources

A : National Law

National Labour Legislation

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations (latest report)

C : ITUC

ITUC: ITUC Global Rights Index

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

LRI Country Score
The Labour Rights Index has 10 indicators and 46 sub-indicators. The LRI Country score averages 10 indicators and ranges between 0 and 100. The lowest and highest scorers are Nigeria (29/100) and Belgium/Greece (96/100). https://labourrightsindex.org/  

Freedom of Association Indicator
The Freedom of Association indicator is composed of 4 sub-indicators. Scoring is done through the binary method (0 or 1). The score ranges between 0-100. 

Trade union density rate (%)
The trade union density rate conveys the number of union members who are employees as a percentage of the total number of employees in the country. For updated statistics on trade union density, please check ILOSTAT. 

Collective bargaining coverage rate (%)
The collective bargaining coverage rate conveys the number of employees whose pay and/or conditions of employment are determined by one or more collective agreement(s) as a percentage of the total number of employees in the country. For updated statistics on collective bargaining coverage, please check ILOSTAT. 

SDG indicator 8.8.2
SDG indicator 8.8.2 measures national compliance with fundamental labour rights (freedom of association and collective bargaining or FACB). It ranges from 0 to 10, with 0 being the best possible score (indicating higher levels of compliance with FACB rights) and 10 the worst (indicating lower levels of compliance with FACB rights). It is based on six ILO supervisory body textual sources and national legislation.
For an updated assessment on SDG indicator 8.8.2, please check ILOSTAT. 

ITUC Global Rights Index 2024 Ratings
The ITUC Global Rights Index depicts the world’s worst countries for workers by rating 148 countries on a scale from 1 to 5+ on the degree of respect for workers’ rights. Violations are recorded each year from April to March.  For a detailed description of ratings and methodology, please follow the link. 

Information

Source: §10 of the Federal Constitution of Malaysia 1957; §27 of Trade Union Act 1959; Industrial Relations Act 1967

A : National Law

National Labour Legislation

"27. Membership of public officers and employees of statutory authorities. (1) Subject to subsection (2), no public officer shall join or be a member of any trade union or shall be accepted as a member of any trade union. (2) The Yang di-Pertuan Agong may by notification in the Gazette exempt from the provisions of subsection (1), either wholly or subject to such conditions as may be specified in such notification, any public officers or any category, class or description of public officers other than- (a) members of the Royal Malaysian Police; (b) members of any prison service; (c) members of the Armed Forces; (d) public officers engaged in a confidential or security capacity; (e) public officers who are prohibited under any written law from forming or being members of a trade union; and (f) public officers holding any post in the Managerial and Professional Group, except such public officers, or such class, category or description of public officers in such Group, as are excluded from the operation of this paragraph by a direction in writing issued by the Chief Secretary to the Government. (3) (a) No person employed by a statutory authority shall join or be a member of, or be accepted as a member by any trade union unless the membership of that trade union is confined exclusively to persons employed by that particular statutory authority."

Information

Source: §9 & 13-17 of the Industrial Relations Act 1967; CEACR C98 Obs. 2022; ITUC Global Rights Index 2024 (Malaysia Profile)

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations

"Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 110th Session, May–June 2022) The Committee notes the discussion which took place in June 2022 in the Conference Committee on the Application of Standards (the Conference Committee) concerning the application of the Convention by Malaysia. The Committee notes that the Conference Committee noted with interest the amendments to the Industrial Relations Act 1967 (IRA) and the Employment Act 1955 (Employment Act), in 2021 and 2022 respectively and the prevailing concern regarding ongoing challenges in relation to the exercise of the collective bargaining rights, trade union discrimination and interference. The Committee observes that the Conference Committee requested the Government to: (i) amend without delay national legislation, specifically the Employment Act, the Trade Unions Act 1959 (TUA), and the IRA, in consultation with the social partners, to bring these laws into conformity with the Convention; (ii) ensure that the procedure for trade union recognition is simplified and that effective protection against undue interference is adopted; (iii) ensure that migrant workers can fully participate in collective bargaining, including by enabling them to run for trade union office; (iv) enable collective bargaining machinery in the public sector to ensure that public sector workers may enjoy their right to collective bargaining; (v) ensure, in law and practice, adequate protection against anti-union discrimination, including through effective and expeditious access to courts, adequate compensation and the imposition of sufficiently dissuasive sanctions. The Conference Committee also requested the Government to: (i) submit a report to the Committee of Experts by 1 September 2022 with information on the application of the Convention in law and practice, in consultation with the social partners; and (ii) continue to avail itself of the technical assistance of the ILO. The Committee has for many years requested the Government to take the necessary measures to ensure for public servants not engaged in the administration of the State the right to bargain collectively over wages and remuneration and other working conditions and emphasized that simple consultations with unions of public servants not engaged in the administration of the State did not meet the requirements of Article 4 of the Convention. The Committee notes the ITUC’s observations indicating that public servants are only consulted and not integrated in processes of collective bargaining. "

C : ITUC

ITUC Global Rights Index (country legal profile)

"Collective bargaining is restricted in companies in "pioneer" industries, such as electronics."

Information

Source: §25A of the Trade Union Act 1959; §38-50 of the Industrial Relations Act 1967; CEACR C98 Obs. 2022

A : National Law

National Labour Legislation

"25A. Strikes and lock-outs. (1) No trade union of workmen shall call for a strike, and no member thereof shall go on strike, and no trade union of employers shall declare a lock-out- (a) in the case of a trade union of workmen, without first obtaining the consent by secret ballot of at least two-thirds of its total number of members who are entitled to vote and in respect of whom the strike is to be called; and in the case of a trade union of employers, without first obtaining by secret ballot the consent of at least two-thirds of its total number of members who are entitled to vote; (b) before the expiry of seven days after submitting to the Director General the results of such secret ballot in accordance with section 40 (5); (c) if the secret ballot for the proposed strike or lockout has become invalid or of no effect by virtue of section 40 (2), (3), (6) or (9); (d) in contravention of, or without complying with, the rules of the trade union; (e) in respect of any matter covered by a direction or decision of the Minister given or made in any appeal to him under this Act; or (f) in contravention of, or without complying with, any other provision of this Act or any provision of any other written law. (2) Any trade union which, and every member of its executive who, commences, promotes, organises or finances any strike or lock-out which is in contravention of subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding two thousand ringgit, or to imprisonment for a term not exceeding one year, or to both, and a further fine of one hundred ringgit for every day during which such offence continues. (3) Any member of a trade union of workmen who commences, participates in, or otherwise acts in furtherance of, any strike which is in contravention of subsection (1) shall forthwith cease to be a member of the trade union, and thereafter such member shall not be eligible to become a member of any trade union except with the prior approval of the Director General in writing; and the trade union of which he has so ceased to be a member shall forthwith- (a) remove the name of such member from its membership register; (b) inform the Director General and the member concerned of such removal; and (c) exhibit conspicuously in its registered office in a place where it may be easily read a list of members whose names are so removed. (4) The Director General may, where he is satisfied that subsection (1) has been contravened by any person and the trade union concerned has failed to carry out the provisions of subsection (3), or where there is undue delay in so doing, after such investigation as he deems necessary, order the trade union to remove forthwith the names of the members concerned from its membership register. (5) The satisfaction of the Director General under subsection (4) that subsection (1) has been contravened by any person may be arrived at regardless as to whether or not there is any prosecution of any person for contravention of the said subsection (1). (6) Any registered trade union which, and every member of its executive who, fails to comply with subsection (3) or with an order of the Director General under subsection (4) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one thousand ringgit, and a further fine of one hundred ringgit for every day during which such offence continues. (7) In every proceedings for an offence under this section the onus of proving that the requirements specified in subsection (1) have been complied with shall be on the trade union, the member of its executive or the member of the trade union, as the case may be. "

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations

"Compulsory arbitration. The Committee had noted withinterest that the amendments to the IRA restrict compulsory arbitration to instances generally compatible with the Convention. However, it had also noted that the reference in section 26(2) to “any Government service” and “the service of any statutory authority”, as well as the reference to a number of Government services in point 8 of the First Schedule, may go beyond what can be considered as public servants engaged in the administration of the State. Furthermore, point 10 of the First Schedule, qualifies as essential services businesses and industries connected with the defence and security of the country, while they should be afforded the full guarantees of the Convention. The Committee notes the Government’s indication that the IRA amendments will be enforced after the TUA’s amendment is completed. The Committee trusts that the amendments will enter into force without delay, once the legislative process for the Trade Union Act amendments, noted above, is completed. The Committee requests the Government to provide information on the amendments and measures taken or envisaged, in consultation with the social partners, to: (i) further delimit the categories of Government services in section 26(2) and point 8 of the First Schedule, so as to ensure that compulsory arbitration may only be imposed on those public servants engaged in the administration of the State; and (ii) remove businesses and industries mentioned in point 10 of the First Schedule from its scope of application."

Information

Source: §46 of the Industrial Relations Act 1967; ITUC Global Rights Index 2024 (Malaysia Profile)

A : National Law

National Labour Legislation

"Penalty for illegal strikes and lock-outs 46. (1) Any workman who commences, continues or otherwise acts in furtherance of a strike which is illegal under this Act shall be guilty of an offence and shall, on conviction, be liable to imprisonment for a term not exceeding one year, or to a fine not exceeding one thousand ringgit, or to both, and a further fine of fifty ringgit for every day during which such offence may continue."

C : ITUC

ITUC Global Rights Index (country legal profile)

"Penalties for members of a union's executive committee who participate in an illegal strike include fines and up to one year in prison. Rank-and-file members who participate in an illegal strike are deemed by the government to be automatically deprived of their union membership and may not join another union in the future without explicit written approval from the Director General of Trade Unions (Ministry of Human Resources)."