The Employment (Amendment) Bill 2021 which proposed wide-ranging amendments was tabled for its first reading on 25th of October 2021. After close to a year, the Human Resources Minister, M Saravanan announced that the Employment (Amendment) Act 2022 (“this Act”) will come into force on the 1st of September 2022. The key amendments to the Employment Act 1955 (“EA 1955”) are as follows:-
The maximum weekly working hours for the employees are reduced from 48 hours per week to 45 hours per week.1 This essentially means that the employment contract for those covered under the EA 1955 would have to be reviewed and amended accordingly as any work performed beyond the now-amended working hours would entitle the employees to overtime pay.
Failure of the employers to adhere to the provisions on working hours, specifically the now reduced weekly working hours would subject the employers to penalty of up to RM50,000.00.2
An unprecedented amendment to the EA 1955 would be the option for employees to apply for flexible working arrangements. Employees may now make a written application to the employers to vary the hours of work, days of work or place of work in relation to their employment.3
However, the employers may still exercise their prerogative on whether or not such application will be allowed within 60 days from the date the application was made. Upon the employers' refusal to approve such application, the employers merely need...
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