The Story

Shafiq worked as an administrative officer in a logistics company. His official hours were 9 a.m. to 6 p.m., but in reality, he rarely left before 9 p.m. Trucks came in late, client calls stretched into the night, and urgent reports were often needed by morning. Shafiq never complained—he understood the nature of the business.

Every month, he submitted his overtime (OT) claim forms. But almost every time, the claims were rejected. Sometimes his manager wrote “budget constraints,” sometimes “not pre-approved,” and occasionally “OT is part of your responsibility.” Despite working hundreds of extra hours, Shafiq’s salary never reflected the sacrifice.

Frustrated and exhausted, he asked himself: If my boss always rejects my OT claims, who can I turn to? Does the law protect me?

The Law

Overtime is not just a matter of goodwill—it is a legal right under Malaysian labour law. The Employment Act 1955 (Act 265, as amended 2022) sets out the rules clearly.

1. Normal Working Hours

• Under Section 60A(1), normal working hours cannot exceed 45 hours per week (reduced from 48 hours after the 2022 amendments).

2. Overtime Definition and Rate

• Work beyond normal hours is overtime.
• Section 60A(3) provides the rates:
  • At least 1.5 times hourly rate for overtime on ordinary working days.
  • At least 2 times hourly rate for work on rest days.
  • At least 3 times hourly rate for work on public holidays.

3. Who Is Covered?

• Before 2022, the Act mostly applied to employees earning RM2,000 or below, or in manual labour.
• After the amendments, protections (including OT) were extended to all employees, unless specifically excluded for managerial roles. Even higher-paid employees may be entitled to OT unless their duties are genuinely managerial or confidential.

4. Written Approval vs. Actual Work

• Some companies argue that OT must be “pre-approved.” While internal policies may require prior approval, the Act is clear: if the employer requires or permits the employee to work extra hours, those hours count as overtime and must be paid.
• Employers cannot dismiss OT as “part of the job” if it exceeds statutory limits.

5. Enforcement and Complaints

• Section 69 of the Employment Act gives the Director General of Labour the power to investigate complaints about unpaid wages, including overtime claims.
• Employees may file a complaint with the Jabatan Tenaga Kerja (JTK). The Labour Office can summon employers, review timesheets, and order payment of unpaid OT.
• Employers who fail to pay OT may face fines under Section 100.

Lessons

For Employees:

1. Know your entitlement. Any work beyond 45 hours a week, or outside normal hours, is overtime unless you are in a role specifically excluded.
2. Keep records. Save punch cards, timesheets, emails, or WhatsApp instructions that show you were required to work late. These can support your case if you complain to JTK.
3. Follow company procedure, but don’t surrender your rights. Submit OT forms even if they are rejected. Your persistence builds a record of unpaid hours.
4. Seek recourse. If your boss continually refuses to honour OT, lodge a complaint with JTK. The law empowers you to claim what you are owed.

For Employers:

1. Compliance is mandatory. Rejecting valid OT claims is not only unfair but also unlawful. The Employment Act requires payment at premium rates.
2. Budget excuses don’t apply. Financial constraints do not exempt employers from statutory obligations.
3. Use workforce planning. If OT is too high, restructure shifts or hire more staff. Denying claims is not a lawful solution.
4. Respect employee morale. Regularly rejecting OT breeds resentment and turnover. Paying fairly ensures loyalty and productivity.

For HR Practitioners:

1. Educate managers. Many supervisors wrongly think OT is discretionary. HR must ensure managers understand the statutory obligations.
2. Create clear policies. While pre-approval may be required, policies must align with the law. If employees are directed or permitted to work, OT must be paid.
3. Audit regularly. Compare timesheets with OT payments to detect systemic non-compliance.
4. Be proactive. Address employee concerns before they escalate to complaints at JTK or Industrial Court.

Conclusion

So, who can Shafiq turn to when his OT claims are always rejected? The answer is: the law is on his side, and the Labour Department (JTK) is the authority to help him.

The Employment Act 1955 makes overtime payment a statutory right. Employers cannot hide behind excuses like budget, “part of the job,” or lack of pre-approval if the employee was in fact required or permitted to work beyond normal hours. Employees who are denied overtime can and should escalate the matter to JTK, where the Director General has power to order payment and penalise the employer.

For employees, the lesson is to know your rights, keep records, and not silently absorb unfair treatment. For employers, the lesson is to manage workloads responsibly and comply with the law. Denying lawful overtime is not only illegal but also short-sighted—it erodes trust, damages morale, and risks legal penalties.

In short: overtime is not a favour—it is a right. And if your boss rejects your claim, you can turn to the Labour Department to enforce that right.