In brief

Effective 1 September 2022, substantial amendments will be made to the Employment Act 1955 (“Act“). From 1 September 2022, all employees in Malaysia will be entitled to protection under the Act, except for certain identified sections of the Act (“Excepted Sections“).

Key takeaways

Currently, the Act only applies to those earning less than RM2,000 and specific categories of blue-collar workers, such as manual labourers, supervisors of the manual labourer and drivers. The amendments means that a much larger section of the Malaysian work force will now be entitled to protection under the Act.

Excepted Sections

The Excepted Sections will not apply to employees who earn more than RM4,000 per month, unless they fall under the categories of blue-collar workers, such as manual labourers, supervisors of the manual labourer and drivers.

The Excepted Sections are:

• Section 60(3) relating to additional pay for working on rest days
• Section 60A(3) relating to overtime pay
• Section 60C(2A) relating to entitlement to allowances during shift work
• Section 60D(3) and (4) relating to public holiday rate of pay
• Section 60J relating to termination, lay-off, and retirement benefits

Effect of the amendments

The amendments have redefined the categories of employees who will be entitled to the minimum standards and benefits under the Act (“Minimum Standards“).

The Minimum Standards which address fundamental subject matters such as annual leave, sick leave, working hours, rest days, public...

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