This post is also available in: Bahasa Malaysia

If you run a business in Malaysia—whether large or small—maintaining an employee register is a statutory requirement under Malaysian labour laws. Many employers overlook this critical aspect of compliance, exposing themselves to unnecessary legal risk. This article explains the legal basis, required content, retention period, and whether small businesses are exempt from this obligation.

Employee Register Requirement in Malaysia

Is It Mandatory for All Businesses?

Yes. The requirement to maintain an employee register applies to all employers, regardless of company size, industry, or number of employees. Small businesses are not exempted. Even sole proprietors or partnerships with just one employee must comply with this regulation under Malaysian law.

Legal Basis for Employee Register in Malaysia

The obligation to maintain an employee register is governed by:

Peninsular Malaysia & Labuan:
Employment Act 1955, Section 61(1)
Employment (Register of Employees) Regulations 1957

Sabah:
Labour Ordinance (Sabah Cap. 67), Section 64

Sarawak:
Labour Ordinance (Sarawak Cap. 76), Section 64

Each of these statutes empowers the Labour Department to inspect records and enforce compliance.

What Must Be Included in the Employee Register?

According to the Employment Regulations, the register must contain key employment details for each staff member, including:

  • Full Name
  • Identity Card or Passport Number
  • Nationality
  • Gender
  • Date of Birth
  • Date of Employment
  • Job Title/Designation
  • Nature of Work
  • Wage Details (including allowances and deductions)
  • Working Hours
  • Rest Days and Leave Entitlements
  • Date of Termination (if applicable)
  • Reason for Termination (if applicable)

This information must be kept up to date and made available upon request by the Director General of Labour or any authorised officer.

Record Retention Period: How Long Must You Keep the Register?


Under Section 61(2) of the Employment Act 1955, as well as similar provisions under the Sabah and Sarawak Labour Ordinances, employers must retain employee records for at least six (6) years from the date of the last entry.

This rule also applies after an employee leaves the company.

Format: Manual or Digital?

The law allows the employee register to be kept in written or electronic form, as long as:

  • All required information is clearly recorded.
  • Records are accessible for inspection when required.
  • Updates are made promptly when employee information changes.

Employers are encouraged to use digital HR or payroll software to ensure data integrity, accessibility, and audit readiness.

Location and Availability

The register should be kept in the office within the place of employment, unless otherwise permitted by the Director of Labour. It must be made available for inspection by the Director as and when required.

Penalties for Non-Compliance

Employers who fail to maintain or produce an employee register may face:

  • Fines of up to RM10,000 per offence
  • Inspections or audits by the Department of Labour
  • Difficulties in resolving employment disputes, particularly in cases involving termination, unpaid wages, or wrongful dismissal claims

Compliance Tips for Employers

Conduct periodic HR audits to ensure records are complete.

Train HR/payroll staff on statutory documentation requirements.

Use cloud-based payroll or HR systems with built-in compliance features.

Stay Compliant, No Matter Your Business Size

Every Malaysian employer is legally obligated to maintain a complete and accurate employee register, regardless of business size. With labour inspections and digitalisation of compliance on the rise, having proper documentation is more important than ever.

If you’re unsure about your current practices, or need help digitising your employee records, our team can assist you with cloud-based payroll and HR solutions that keep your business compliant and audit-ready.