The Employment (Amendment) Act 2022 (“Amendment Act”) and the Employment (Amendment of First Schedule) Order 2022 (“Order”) will see their deferred implementation on 1 January 2023.
Employment (Amendment of First Schedule) Order 2022
The highly anticipated Employment (Amendment of First Schedule) Order 2022 (“Order”) will significantly broaden the scope of the current First Schedule of the Employment Act 1955 (“EA”).
Pursuant to the Order, the EA will apply to any person who has entered into a contract of service, with specific provisions of the legislation not being applicable to the following classes of employees:
The above distinction is especially crucial, and employers are advised to take note of the same as it may materially affect their obligations towards their existing employees. An example being Section 60D (3) EA, where an employee is required by his employer to work on a paid holiday, he shall be paid an extra amount in addition to the holiday pay he is entitled to.
As a result of the above amendments, the aforesaid section will apply to all employees unless they fall under one of the specified classes of employees (i.e., individuals whose wages exceeds RM4,000 a month).
Employment (Amendment) Act 2022
The Amendment Act seeks to amend the EA in order to comply with the international standards and practices, as required by the Trans-Pacific Partnership Agreement, the Malaysia-United States Labour Consistency Plan and the International Labour Organization.
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