The Industrial Court: Brief History

The Industrial Court was established in 1941 under the Industrial Court and Court of Inquiry Rules 1941 (Gazette Notification No. 2569/1941) but it did not function due to the Japanese Occupation. During the Emergency period, trade union activities were carried out illegally as many trade union leaders were influenced by communist subversive elements.

The Industrial Court Ordinance 1948 (Federation of Malaya Ordinance 37 of 1948) was enacted to establish a dispute resolution system. Trade Disputes Ordinance 1949 (Federation of Malaya No. 4 of 1949) was enacted. The Industrial Court at that time was a voluntary dispute resolution body, which heard disputes on an ad hoc basis. From year 1948 to 1964, only 4 disputes were heard.

The voluntary dispute resolution system was abolished with the introduction of two new Regulations, i.e. the Essential (Prohibition of Strikes and Prescribed Industrial Action) Regulations 1965 and the Essential (Trade Disputes in the Essential Services) Regulations 1965 (L.N. 355/1965). These two Regulations were made under the Emergency (Essential Powers) Act 1964 to prohibit any industrial action in both the public and private sectors which are classified as essential services.

The Industrial Relations Act 1967 was then enacted. This Act (and the jurisdiction of Industrial Court) has   been extended to Sabah and Sarawak via Modification of Laws (Trade Disputes) (Extension to Borneo States) Order 1967 (P.U. 94/1967) and Modification of Laws (Industrial Courts) (Modification and Extension to Borneo States) Order 1967 (P.U. 95/1967).

The present Industrial Court was established under the Industrial Relations Act 1967.  According to section 21 of this Act, Industrial Court consist of a President who shall be appointed by the Yang di-Pertuan Agong; and a panel of persons representing employers and a panel of persons representing workmen all of whom shall be appointed by the Minister (provided that before appointing the panels the Minister may consult such organizations representing employers and workmen respectively as he may think fit).