Trade Unions in Malaysia: Formation, Registration and the 2024 Act Reforms

For decades, a factory worker in Malaysia could only join the one “valid” union for their workplace — and if that union already existed, no other group of workers could establish a new one. The legal reform that took effect on 15 September 2024 changed that fundamental premise.

What law governs trade unions in Malaysia?

The cornerstone law is the Trade Unions Act 1959 (Act 262). It sets out who may form a union, how it is registered, its rights and responsibilities, and the powers of the authorities to regulate the union movement.

The administrator of this Act is the Director General of Trade Unions (DGTU), appointed by the Yang di-Pertuan Agong under section 3(1) of the Trade Unions Act 1959 and holding general supervision, direction and control over all matters relating to trade unions throughout Malaysia (source: Act 262, s.3; JHEKS, “About Us”). The Director General heads the Department of Trade Union Affairs (JHEKS) under the Ministry of Human Resources.

Two closely related legal frameworks must be distinguished:

• Trade Unions Act 1959 — governs the formation and registration of unions.
• Industrial Relations Act 1967 — governs recognition, collective bargaining and the settlement of industrial disputes between unions and employers.

A union may be registered under Act 262, but the right to bargain on behalf of workers is still determined under the 1967 Act.

What changed on 15 September 2024?

The Trade Unions (Amendment) Act 2024 (Act A1700) took effect on 15 September 2024 (source: Zul Rafique & Partners). Note the difference in the year label: the bill was debated in Parliament as the “Trade Unions (Amendment) Bill 2023”, but when it was gazetted it was named as the 2024 Act — so references to “2023” and “2024” refer to the same instrument at different stages.

The legislative chronology:

• Passed by the Dewan Rakyat on 10 October 2023 (source: Donovan & Ho).
• Passed by the Dewan Negara on 28 November 2023 (source: Sinar Harian; New Straits Times).
• Received royal assent on 27 December 2023 and was gazetted on 12 January 2024 (source: official gazette text of Act A1700).

The most fundamental change is that the definitions of “trade union” and “union” were amended to remove the restriction that limited a union to a particular establishment, trade, occupation or industry, or to similar trades/occupations/industries. The direct effect: multiplicity of unions — more than one union may now exist within the same workplace (source: DLA Piper; Zul Rafique & Partners).

The following table summarises the key changes:

Item	Before the amendment	After 15 September 2024	Source
Number of unions within one establishment	Limited — usually only one	Multiple unions permitted	DLA Piper; Zul Rafique
Period to apply for registration after formation	1 month	6 months	Zul Rafique
Grounds for the Director General to refuse registration	Included because another union already existed	Limited; cannot refuse merely because another union exists	Donovan & Ho
Minimum age for membership	16 years	15 years	Zul Rafique; Donovan & Ho
Director General’s enforcement powers	Limited	Power to investigate, summon witnesses and seize documents (s.63A–63E)	Donovan & Ho

How is a trade union formed and registered?

A union must be registered to enjoy the rights and privileges of a legally valid body. The basic process:

1. Form the union — a group of workers (or employers, since the Act also permits employers’ unions) agrees to form a union and drafts its constitution and rules.
2. Apply for registration with JHEKS — the application is submitted through the online e-TUIS system, whose official name is the Electronic Trade Union Information System (the Malay rendering “Sistem Maklumat Kesatuan Sekerja Elektronik” is merely descriptive) (source: JHEKS/e-TUIS). After the 2024 amendment, the application must be made within six months of the date of formation (previously one month) (source: Zul Rafique & Partners).
3. Review by the Director General — the DGTU reviews the constitution, name and compliance with the Act.
4. Registration or refusal — if approved, a certificate of registration is issued; if refused, the grounds must fall within the limited scope permitted by law.

After the amendment, the DGTU may only refuse registration in specific circumstances, for example where (source: Donovan & Ho):

• the union’s rules or objectives conflict with the Trade Unions Act 1959;
• the proposed name is identical to or too misleadingly similar to an existing union; or
• the name could inflame feelings of hostility between different races, religions or nationalities.

Importantly, the DGTU can no longer refuse registration merely because another union already represents the workers in that establishment, trade, occupation or industry.

What are the Director General’s new powers?

The 2024 amendment introduces a new set of enforcement provisions (sections 63A to 63E, inserted by s.26 of Act A1700) that give the DGTU the power to (source: Act A1700, s.26; Donovan & Ho):

• conduct investigations into breaches of the Act;
• appoint enforcement officers;
• summon the attendance of individuals and examine witnesses;
• require the production of documents; and
• seize material as evidence.

In addition, section 71A introduces an automatic stay of execution when a union appeals against a decision to cancel or withdraw its certificate of registration — giving the union temporary protection while the appeal is decided (source: Donovan & Ho).

How do employers handle multiple unions and recognition?

This is where Act 262 and the Industrial Relations Act 1967 meet. Multiplicity of unions means a workplace may now have more than one registered union — but only one can hold sole bargaining rights.

The mechanism under the 1967 Act (source: Lee Hishammuddin Allen & Gledhill):

• Section 12A — where workers are represented by more than one recognised union, they determine which union holds exclusive bargaining rights. If there is no agreement, an application may be made to the Director General of Industrial Relations, who may conduct a secret ballot.
• Section 12B — protects the winning union by barring a rival union from claiming bargaining rights until three years have passed, or until the recognised union no longer exists.

For employers, this means: accepting the existence of multiple unions does not necessarily mean bargaining with each one. The statutory process determines a single bargaining agent, and employers must cooperate with the secret-ballot mechanism when the bargaining agent’s status is disputed.

What are the risks and debates around multiplicity of unions?

The reform has been welcomed as a step towards aligning Malaysia with international standards on freedom of association. However, several unions and industry groups raised concerns:

• Inter-union competition could give rise to unhealthy rivalry and weaken solidarity.
• Fragmented bargaining power where membership is divided among several small unions in one workplace.
• Prolonged legal disputes over who the legitimate bargaining agent is could delay collective agreements.

Conversely, supporters argue that competition can push unions to be more responsive and innovative in representing their members.

What’s next

If you are a worker seeking to form or join a union, start by checking whether an existing union already represents your group — and remember that after 15 September 2024, the existence of one union no longer prevents the formation of another. Submit the registration application through e-TUIS within six months of formation.

If you are an employer or HR officer, review your recognition procedures: make sure your team understands the difference between registration (Act 262) and recognition/bargaining (Act 1967), and be prepared for the section 12A secret-ballot process if more than one union emerges.

For certainty on exact section numbers and the latest procedural requirements, refer to the official text of the Trade Unions Act 1959 and Act A1700, the JHEKS website, or seek industrial relations legal advice. This article is an AI-generated draft and is not legal advice.