The proposed amendments to Malaysia’s Employment Act are scheduled to come into force on January 1, 2023.
The amendments allow employees to apply for flexible working arrangements, increase paternity leave, and provide greater protection against all types of harassment and discrimination, among others.
The Employment Act, however, does not cover all employees. The Act only applies to; employees earning less than 2,000 ringgit (US$441) per month or below; manual laborers; domestic servants; and those employed in the maintenance of mechanically propelled vehicles or on seagoing vehicles.
On October 25, 2021, the proposed amendments to Malaysia’s Employment Act were tabled for its first reading for parliament and were supposed to be implemented on September 1, 2022. However, after further discussions with industry players and other stakeholders, the Human Resources Minister will defer the implementation until January 1, 2023.
The amendments include extending pregnancy and maternity protection, allowing employees to apply for flexible working arrangements, and creating a new offense for ‘forced labor, among others. The changes aim to bring the Act to ‘international standards’ as required by the Trans-Pacific Partnership (TPP), the International Labor Organization (ILO), and the Malaysia-United States Labor Consistency Plan.
The Employment Act of 1955 governs employment laws in Malaysia and sets out the minimum benefits that are afforded to employees; however, it does not apply...
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