The Covid-19 crisis has had a significant impact on the world’s labour market and job landscape. Additionally to managing hybrid working conditions, regional HR and in-house legal departments must handle a number of new personnel challenges. They also need to stay on top of ongoing legislative developments.
The Employment (Amendment) Act 2022 (the Amendment Act), which proposes amendments to the Employment Act 1955, was presented to the Malaysian Parliament on 25 October 2021. The Amendment Act will become operational on 1 September 2022. As a result of the amendments, the Employment Act will undergo major changes.
Key changes to the Employment Act
Pregnancy and maternity leave
Maternity leave increases from 60 to 98 days in order to follow the international labour standard. When a female employee is pregnant or suffering from an illness related to her pregnancy, her employer may not terminate her employment or give her notice of termination unless there is (a) a wilful breach of a condition of the contract of service; (b) misconduct; or (c) the company is no longer in business.
Introduction of paternity leave
Married males will have the right to 7 days of paid paternity leave per birth. Eligibility for the leave will be limited to just 5 births, regardless of the number of spouses, and will begin on the day of the birth. See s 60FA.
Notice of sexual harassment
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