Employment Act · 2026 Revised Edition · Part · Payment of Salaries
51. Priority of salary to other debts
Official textFrom Attorney General's Chambers, unchanged
This section applies to all workmen and to other employees who are in receipt of a salary not exceeding $1,600 a month (excluding overtime payments, bonus payments, annual salary supplements, productivity incentive payments and any allowance however described) or such other amount as may be prescribed by the Minister.
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;
When, on the application of a person holding a mortgage, charge or lien or of a person who has obtained a judgment or decree, the property of an employer is sold, or any money due to the employer is garnished, the court ordering the sale or garnishment shall not distribute the proceeds of the sale or the money to the person entitled thereto unless the court has ascertained and paid the salary due to all the employees employed by that employer and to all employees engaged by a contractor or sub-contractor and working for that employer.
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;
This section only applies —
to property on which those employees were or are working;
where the property sold was or is the produce of the work of those employees;
where the property sold is movable property used or being used by those employees in the course of their work; or
to money due to the employer in respect of work done by those employees.
Employment 40
The amount payable to each such employee under subsection (2) shall not exceed 5 months’ salary.
employee
“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;
For the purpose of ascertaining the amount due to any employee under subsection (2), the court may refer the matter to the
Commissioner with a request that he holds an inquiry into the matter and forwards his findings in respect thereof to the court, and the Commissioner shall thereupon comply with any such request.
Commissioner
“Commissioner” means the Commissioner of Labour appointed under section 3(1);
For the purposes of any inquiry under subsection (5), the
Commissioner shall have all the powers conferred upon him by section 124.
For the purposes of this section, “employees” includes sub-contractors for labour and “salary” includes money due to a sub-contractor for labour.
sub-contractor for labour
“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;
Terms defined in s 2
Commissioner
Defined · s 2“Commissioner” means the Commissioner of Labour appointed under section 3(1);
contractor
Defined · s 2“contractor” means any person who contracts with a principal to supply labour or to carry out the whole or any part of any work undertaken by the principal in the course of or for the purposes of the principal’s trade or business;
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;
overtime
Defined · s 2“overtime” means the number of hours worked in any one day or in any one week in excess of the limits specified in Part 7;
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;
Part
Principals and Contractors
Part
Truck System
Part
Rest Days, Hours of Work, Holidays and Other Conditions of Service
Part
Health, Accommodation and Medical Care
Part
Part-Time Employees
Part
Employment of Women
Part
Employment of Children and Young Persons
Part
Domestic Workers
Part
Immigrant Employees
Part
Repatriation
Part
Inspection
Part
Complaints and Inquiries
Part