What You Need to Know About Part-Time Employees
When deciding your staffing strategy, determining the number of full-time and part-time employees is crucial. However, the differences between the two go much deeper than just pay and working hours. Here’s all you need to know about part-time employees in Malaysia.
Who Is a Part-Time Employee?
Part-time employees are defined as employees who work between 30% to 70% of the normal working hours of a full-time employee, i.e. 48 hours per week.
Any more than that, they will be considered full-time employees. Less than that and they are classed as ‘casual employees’ or freelancers.
What Are Part-Time Employees Entitled To?
The rights of part-time employees are covered by the Employment (Part-Time Employees) Regulations 2010. As subsidiary legislation made pursuant to the Employment Act 1955, part-time employees are also covered under the main Employment Act.
As such, part-time employees are entitled to much of the same benefits that full-time employees enjoy, such as minimum wages, leave, and overtime – albeit at reduced rates.
Here are some of the benefits that part-time employees enjoy:
Sick leave:
- 10 days per year if employed for 1–2 years,
- 13 days per year if employed for 2–5 years,
- 15 days per year if employed for longer than 5 years.
Annual leave:
- 6 days per year if employed for 1–2 years,
- 8 days per year if employed for 2–5 years,
- 11 days per year if employed for longer than 5 years.
Overtime:
- 1x hourly rate of pay if they exceed normal hours of work but do not exceed the normal hours of a full-time employee.
- 1.5x hourly rate of pay if they exceed the normal hours of a full-time employee.
Other Part-Time Employee FAQs:
Are part-time employees subject to EPF and SOCSO contributions?
Yes, they are subject to EPF, SOCSO, and EIS contributions at the same rate as full-time employees.
Are part-time employees entitled to health insurance, allowances etc?
This will depend on company policy, as such benefits are not legally mandated. Some companies do provide full or partial benefits to part-time employees, while some don’t have this at all.
If an employee is paid by the hour and works irregular hours, are they considered part-timers?
If their total work hours are between 30% to 70% of the normal working hours of a full-time employee, then yes, they are part-time employees – regardless of the irregularity of their working hours. Therefore, they too enjoy the protections under the Employment (Part-Time Employees) Regulations 2010.
If a full-time employee wants to convert their status to a part-time employee, what should HR do?
Going from a full-time position to a part-time position will normally mean a reduction in working hours, as well as a reduction in salary.
For this, both employer and employee need to terminate the full-time employment contract and agree to a new part-time arrangement.
Are fixed-term contract employees part-timers?
This is a common mistake that many employers make. A part-time employee’s status is determined by the number of hours worked per week, not by their contractual length of service.
For example, an employee on a six-month contract is not considered a part-time employee. Their working hours are likely to be similar to full-time employees, at least until their contract ends. Benefits for fixed-term contract employees are stipulated in their contract without reference to any statutory entitlements.
Can the company terminate part-time employees at will?
No. Like full-time employees, part-time employees can only be dismissed with ‘just cause and excuse’. This means that the employer must go through the proper procedure before dismissing them, e.g. sending warning letters, putting them on a performance improvement plan (PIP) etc.
Manage Part-Time Employees Right with BrioHR
One of the most important aspects of managing a blended workforce is payroll. It’s essential to ensure that both part-time and full-time employees are paid accurately and on time.
BrioHR’s payroll module enables your business to pay part-time employees on an hourly or monthly basis, calculate statutory deductions accurately, as well as being customizable to your needs. In addition, staff management is made easy with the leave module where you can see who is on leave at a single glance.
With a secure, scalable, user-friendly platform, BrioHR covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.
This enables business owners and HR teams to truly focus on what matters most – people.
Visit briohr.com and get a free demo now.
When deciding your staffing strategy, determining the number of full-time and part-time employees is crucial. However, the differences between the two go much deeper than just pay and working hours. Here’s all you need to know about part-time employees in Malaysia.
Who Is a Part-Time Employee?
Part-time employees are defined as employees who work between 30% to 70% of the normal working hours of a full-time employee, i.e. 48 hours per week.
Any more than that, they will be considered full-time employees. Less than that and they are classed as ‘casual employees’ or freelancers.
What Are Part-Time Employees Entitled To?
The rights of part-time employees are covered by the Employment (Part-Time Employees) Regulations 2010. As subsidiary legislation made pursuant to the Employment Act 1955, part-time employees are also covered under the main Employment Act.
As such, part-time employees are entitled to much of the same benefits that full-time employees enjoy, such as minimum wages, leave, and overtime – albeit at reduced rates.
Here are some of the benefits that part-time employees enjoy:
Sick leave:
- 10 days per year if employed for 1–2 years,
- 13 days per year if employed for 2–5 years,
- 15 days per year if employed for longer than 5 years.
Annual leave:
- 6 days per year if employed for 1–2 years,
- 8 days per year if employed for 2–5 years,
- 11 days per year if employed for longer than 5 years.
Overtime:
- 1x hourly rate of pay if they exceed normal hours of work but do not exceed the normal hours of a full-time employee.
- 5x hourly rate of pay if they exceed the normal hours of a full-time employee.
Other Part-Time Employee FAQs:
Are part-time employees subject to EPF and SOCSO contributions?
Yes, they are subject to EPF, SOCSO, and EIS contributions at the same rate as full-time employees.
Are part-time employees entitled to health insurance, allowances etc?
This will depend on company policy, as such benefits are not legally mandated. Some companies do provide full or partial benefits to part-time employees, while some don’t have this at all.
If an employee is paid by the hour and works irregular hours, are they considered part-timers?
If their total work hours are between 30% to 70% of the normal working hours of a full-time employee, then yes, they are part-time employees – regardless of the irregularity of their working hours. Therefore, they too enjoy the protections under the Employment (Part-Time Employees) Regulations 2010.
If a full-time employee wants to convert their status to a part-time employee, what should HR do?
Going from a full-time position to a part-time position will normally mean a reduction in working hours, as well as a reduction in salary.
For this, both employer and employee need to terminate the full-time employment contract and agree to a new part-time arrangement.
Are fixed-term contract employees part-timers?
This is a common mistake that many employers make. A part-time employee’s status is determined by the number of hours worked per week, not by their contractual length of service.
For example, an employee on a six-month contract is not considered a part-time employee. Their working hours are likely to be similar to full-time employees, at least until their contract ends. Benefits for fixed-term contract employees are stipulated in their contract without reference to any statutory entitlements.
Can the company terminate part-time employees at will?
No. Like full-time employees, part-time employees can only be dismissed with ‘just cause and excuse’. This means that the employer must go through the proper procedure before dismissing them, e.g. sending warning letters, putting them on a performance improvement plan (PIP) etc.
Manage Part-Time Employees Right with BrioHR
One of the most important aspects of managing a blended workforce is payroll. It’s essential to ensure that both part-time and full-time employees are paid accurately and on time.
BrioHR’s payroll module enables your business to pay part-time employees on an hourly or monthly basis, calculate statutory deductions accurately, as well as being customizable to your needs. In addition, staff management is made easy with the leave module where you can see who is on leave at a single glance.
With a secure, scalable, user-friendly platform, BrioHR covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.
This enables business owners and HR teams to truly focus on what matters most – people.
Visit briohr.com and get a free demo now.
