1.0 BACKGROUND OF EMPLOYMENT ACT 1955 The Employment Act 1955 is the principal legislation that governed the employment practice and employer – employee relationship in Malaysia (Flanders, 1974). Before the enactment of the Employment Act 1955, the British Colonial Administration has practiced in Malaysia. During British administration, the primary policy is to stimulate the growth of the economy by encouraging the alien immigration into Malaya. Alien immigration into Malaya have needed that time due to the willingness of the foreign to work at low rates. Therefore, Indian laborers were imported from India to work in rubber plantations while Chinese laborers who were from China worked in mines. So, the British had introduced legislations to regulate the importation of foreign laborers into Malaya by introducing Labor Contract Ordinance and Chinese Agricultural Laborers Protection Ordinance. While during the British administration in Malay States, the Labor Code 1933 was enacted to consolidate all the existing legislation pertaining to labor law. The enactment of Labor Code 1933had provided a benchmark for the terms and conditions in the employment contract. After independence, the Labor Code 1933 was amended and repealed by Employment Ordinance 1955 which then laid the foundation for the enactment of Employment Act 1955. The Employment Act 1955 is an act which provides for the protection of employees in Malaysia. It covers the states of peninsular Malaysia including the