Improving Compliance with Labor Laws in MSMEs in Malaysia to Achieve Protection of Workers' Rights and Fair Industrial Relations

Abstract

Compliance with employment law in micro, small, and medium enterprises (MSMEs) in Malaysia requires a practical understanding of wage obligations, working hours, social security, occupational safety and health, and worker grievance resolution. This article presents a community service plan planned for Polytechnic Tuanku Syed Sirajuddin, Perlis, on July 31, 2027. The primary target audience is MSMEs and workers. The designed methods include needs mapping, case-based legal counseling, compliance audit workshops, bipartite dialogue simulations, and knowledge evaluations and follow-up plans. The materials refer to the Employment Act 1955 for Peninsular Malaysia and Labuan, the Minimum Wages Order 2024, which will be fully effective from August 2025, EPF and PERKESO obligations, the Occupational Safety and Health Act 1994, and the Industrial Relations Act 1967. The outputs that have been formulated during the preparation stage are an obligation matrix, a compliance checklist, and an internal grievance handling process. Because the activity has not yet been implemented, this article does not indicate any increase in compliance or changes in participant behavior. Results will be assessed after the activity through pretest-posttest comparisons, simple document reviews, and follow-up. This plan positions legal education and equitable dialogue as pathways to translating norms into fair work practices.