The Malaysian Employment Act 1955 will undergo major changes: introducing longer maternity and paternity leave, enhanced protection from discrimination, a statutory right for employees to request a flexible working arrangement and much more. With the implementation of these (many) changes just around the corner, employers need to get up to speed quickly and begin revising policies and processes to ensure compliance.

What’s new?

• Amendments to the Malaysian Employment Act 1955 (“EA 1955“) will provide further protection and benefits to employees.
• Currently, the EA 1955 only applies to employees who: (a) earn less than RM2000 (approx. USD500) per month; or (b) regardless of income, are employed as manual labourers or supervisors of manual labourers; or (c) fall within certain categories such as those working on sea vessels, domestic servants etc.
• However, the Human Resources Ministry has announced that the application of the amendments is likely to extend beyond criteria (a), (b) and (c) to cover more, if not all, employees.
• A Minister’s Order is expected to be issued to clarify the scope of employees covered and clear up any confusion. The expected date of publication of this Order is still unknown.

When will the changes come into effect?

• 1 September 2022.

What are the key amendments to the EA 1955?

1. Paid maternity leave: increased from 60 to 98 days;
2. Introduction of paternity leave: 7 consecutive days for married male employees, subject to other conditions being met;
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