Malaysia: Key amendments to the Industrial Relations Regulations 2009

09 Jun 2025    4 minute read
Trade Unions Industrial Relations

In brief

The amendments to the Industrial Relations Regulations 2009, have come into force on 15 May 2025.

These changes address several key areas, including the requirements for the recognition of a trade union, conduct of secret ballots, and the timeline for the deemed withdrawal of a representation for unfair dismissal.

Contents

Recognition of trade unions

Following the amendments, if an employer/trade union of employers is satisfied that the scope of membership of a trade union of workmen making the claim for recognition to represent relevant workmen/class of workmen is in accordance with the constitution of the relevant trade union, the employer/trade union of employers shall voluntarily accord recognition to such trade union via a prescribed form.

A copy of the prescribed form must then be sent to the Director General of Industrial Relations (DGIR) within 14 days of its issuance.

With these amendments, employers/trade union of employers are compelled to accord recognition to the trade union if its scope of membership is in accordance with its constitution.

Secret ballot to determine sole bargaining rights

For context, secret ballots are used to either ascertain the percentage of workmen who support the trade union seeking recognition, or to identify the preferred trade union to be granted sole bargaining rights. Recent amendments to the Industrial Relations Act 1967 have clarified the concept of sole bargaining rights, where the new provisions allow multiple trade unions recognized by the same employer to decide among themselves who should be granted sole bargaining rights. If an agreement cannot be reached, the employer/trade union of employers/trade union of workmen concerned can apply to the DGIR in writing for a decision. The DGIR may then take steps to resolve the application, or conduct enquiries through a secret ballot.

The amendments to the Regulations provide that where any trade union of workmen competing for sole bargaining rights:

  1. Fails to attend the secret ballot meeting after two attempts, or
  2. Declares its intention not to participate in the determination of sole bargaining rights,

the trade union of workmen shall be presumed uninterested and excluded from the determination of sole bargaining rights.

The DGIR will then decide which trade union of workmen will be granted sole bargaining rights.

On the other hand, where a secret ballot is conducted to decide on the sole bargaining right of a trade union of workmen, the new regulations outline the following provisions:

  1. The trade union of workmen securing the highest number of votes in the secret ballot shall be granted sole bargaining rights.
  2. In the event of a tie, the DGIR shall carry out a further secret ballot among the trade unions of workmen receiving equivalent highest number of votes, until one union obtains the highest number of votes.
  3. In carrying out any subsequent secret ballot stipulated under item (b) above:
    1. The DGIR shall decide the date, time, venue and any other matter which are necessary for conducting the secret ballot, in a new prescribed form.
    2. The employer/trade union of employers shall affix copies of the prescribed notice for the secret ballot, at a conspicuous place in the premises of the employers concerned as determined by the DGIR, for seven consecutive days immediately preceding the day of the casting of the secret ballot.
    3. Workmen entitled to vote must be listed in the prescribed form.

In essence, the amendments clarify the procedures for the conduct of secret ballots (particularly in the instance of a tie or where one party fails to attend), and introduces new and revised forms to be used during the process.

Timeline for deemed withdrawal of a representation for unfair dismissal

When a workman files a representation for unfair dismissal, the initial step requires both the workman and former employer to attend a conciliation process at the Industrial Relations Department (IRD). If this process is unsuccessful, the matter will be automatically referred to the Industrial Court for adjudication (which entails a full trial).

If the workman fails to attend any of the conciliation meetings at the IRD after two attempts, the DGIR will send a notice via a prescribed form to the workman's last known address, instructing him/her to attend the final conference (i.e., conciliation meeting).

The amendments to the Regulations provide that if the workman fails to attend this final conciliation meeting on the specified date without giving any reasonable excuse for such absence within 60 days (instead of the previously provided 30 days), the DGIR may deem the representation as withdrawn. 

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Yen Ni Wong, Legal Assistant, contributed to this update.

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