Employment Act · 2026 Revised Edition · Part · Complaints and Inquiries
129. Prohibitory order by Commissioner to third party
Official textFrom Attorney General's Chambers, unchanged
Whenever the Commissioner —
Commissioner
“Commissioner” means the Commissioner of Labour appointed under section 3(1);
has made an order under sections 124 and 125 against an employer or any other person liable for the payment of any sum of money to any employee or sub-contractor for labour; and
has reason to believe that there exists between such employer or that other person liable and any other person a contract of service in the course of the performance of which the employee or sub-contractor performed the work in respect of which the order was made, the Commissioner may —
summon such other person; and
if after enquiry he is satisfied that such a contract of service exists, make an order in such form as he may determine, prohibiting such other person from paying to the employer or that other person liable and requiring him to pay to the Commissioner any money
(not exceeding the amount found due to such employee or sub-contractor for labour) admitted by him to be owing to the employer or that other person liable in respect of such contract of service.
However, where such other person admits to the Commissioner in writing that money is owing by him under the contract of service to the employer or that other person liable, he need not be summoned under subsection (1)(i) and the Commissioner may make an order under subsection (1)(ii) in his absence.
contract of service
“contract of service” means, subject to section 10, any agreement, whether in writing or oral and whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve him as an employee, and includes a contract of apprenticeship;
Where such other person is liable as a principal under section 53(1) to pay any salary due by the employer or that other person liable and where the money admitted by him to be owing to the employer or that other person liable is not sufficient to pay the whole of such salary,
principal
“principal” means any person who, in the course of or for the purposes of his profession, business, trade or work, contracts with a contractor for the supply of labour or for execution by the contractor of the whole or any part of any work undertaken by the principal;
Employment nothing in this section shall relieve him of his liability for the balance of such salary up to the amount for which he is liable under section 53(3).
salary
“salary” means all remuneration including allowances payable to an employee in respect of work done under his contract of service, but does not include — (a) the value of any accommodation or the supply of any food, fuel, electricity, water or medical attendance, or of any amenity or service excluded by order of the Minister published in the Gazette; (b) any contribution paid by the employer on his own account to any pension fund or provident fund; (c) any travelling allowance or the value of any travelling concession; (d) any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment; (e) any gratuity payable on discharge or retirement; and (f) any retrenchment benefit payable on retrenchment;
The payment of any money in pursuance of an order under subsection (1)(ii) shall be a discharge and payment up to the amount so paid of money due to the employer or that other person liable under the contract of service.
employer
“employer” means any person who employs another person under a contract of service and includes — (a) the Government, in respect of such categories, classes or descriptions of public officers or employees of the Government as are declared by the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, to be employees for the purposes of this Act; (b) any statutory body; (c) the duly authorised agent or manager of the employer; (d) the person who owns or is carrying on or for the time being responsible for the management of the profession, business, trade or work in which the employee is engaged;
Terms defined in s 2
Commissioner
Defined · s 2“Commissioner” means the Commissioner of Labour appointed under section 3(1);
contract of service
Defined · s 2“contract of service” means, subject to section 10, any agreement, whether in writing or oral and whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve him as an employee, and includes a contract of apprenticeship;
employee
Defined · s 2“employee” means a person who has entered into or who works under a contract of service with an employer, and includes a workman and any public officer or employee of the Government included in a category, class or description of such officers or employees declared by the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, to be employees for the purposes of this Act or any Part thereof; but does not include any seaman, domestic worker or any person employed in a managerial, executive or confidential position or any person belonging to any other class of person whom the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, may by notification published in the Gazette, declare not to be employees for the purposes of this Act;
employer
Defined · s 2“employer” means any person who employs another person under a contract of service and includes — (a) the Government, in respect of such categories, classes or descriptions of public officers or employees of the Government as are declared by the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, to be employees for the purposes of this Act; (b) any statutory body; (c) the duly authorised agent or manager of the employer; (d) the person who owns or is carrying on or for the time being responsible for the management of the profession, business, trade or work in which the employee is engaged;
principal
Defined · s 2“principal” means any person who, in the course of or for the purposes of his profession, business, trade or work, contracts with a contractor for the supply of labour or for execution by the contractor of the whole or any part of any work undertaken by the principal;
salary
Defined · s 2“salary” means all remuneration including allowances payable to an employee in respect of work done under his contract of service, but does not include — (a) the value of any accommodation or the supply of any food, fuel, electricity, water or medical attendance, or of any amenity or service excluded by order of the Minister published in the Gazette; (b) any contribution paid by the employer on his own account to any pension fund or provident fund; (c) any travelling allowance or the value of any travelling concession; (d) any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment; (e) any gratuity payable on discharge or retirement; and (f) any retrenchment benefit payable on retrenchment;
sub-contractor
Defined · s 2“sub-contractor” means any person who contracts with a contractor for the supply of labour or for the execution by the sub-contractor of the whole or any part of any work undertaken by the contractor for his principal, and includes any person who contracts with a sub-contractor to supply labour or to carry out the whole or any part of any work undertaken by the sub-contractor for a contractor;
sub-contractor for labour
Defined · s 2“sub-contractor for labour” means any person who contracts with a contractor or sub-contractor to supply the labour required for the execution of the whole or any part of any work a contractor or sub-contractor has contracted to carry out for a principal or contractor, as the case may be;
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