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SEPTEMBER 1 ― On August 26, 2022, the Human Resources Minister M. Saravanan announced the postponement of the implementation of the amendments to the Employment Act 1955. The implementation has been postponed from September 1, 2022 to January 1, 2023, after studying the views of all quarters and stakeholders. The deferment was partly due to requests by employers to be given time to address problems in relation to recruitment and the shortage of foreign workers and recovery from the Covid-19 pandemic.
The postponement is certainly a much-welcomed decision by the employers as the increased cost due to the amendments may not have been budgeted for by businesses. It allows the employers more time to ensure that the implementation is carried out smoothly and properly. Knowing how employers react to higher labour costs is crucial to understand how much job opportunities will be reduced or created and for predicting the economic impacts of the new employment legislation.
The new amendments to be deferred
The amendments to the Employment Act 1955 include, among others, reduction of the working hours from 48 hours to 45 hours a week, introduction of flexible work arrangements, extended maternity leave from 60 days to 98 days and paternity leave entitlement of 7 days. The amendments to the First Schedule of the Employment Act 1955 widen the scope of applicability of the...
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