Amendments to the Employment Act 1955 (“Act“) have been long overdue. On 30 March 2022, the Employment (Amendment) Bill 2021 (“Bill“) was passed in Dewan Negara (Senate). The amendments have not come into force and there is currently no indication as to when this might happen. In this alert, we summarise the key amendments introduced by the Bill.
The amendments introduced under the Bill are driven by Malaysia’s commitment to comply with international labor law standards and practices required under the Trans-Pacific Partnership Agreement, the Malaysia-United States Labour Consistency Plan and the International Labour Organisation.
Some of the key amendments to the Act are summarised below:
The Bill increases maternity leave from 60 days to 98 days.
The Bill restricts employers from terminating a pregnant employee or an employee if suffering from an illness arising out of pregnancy except on the grounds of misconduct, wilful breach of a condition of the employment contract, or closure of the employer’s business.
Married male employees are entitled to seven consecutive days of paternity leave.
Employers are required to conspicuously exhibit a notice to raise awareness of sexual harassment in the workplace.
Employers must obtain prior approval from the Director-General of Labour (“Director-General“)...
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