Employment Act 1955: Key Amendments and Changes
In Malaysia, the Employment Act 1955 is one of the most important laws that govern employment. The last time it was amended was in 2011 – and it's overdue for a substantial overhaul.
And that's what we got with the Employment (Amendment) Act 2022. Employers have been given a grace period to ensure their systems are up to date, but when all is said and done, the new law will kick in on 1 January 2023.
We've prepared for you a handy infographic to the key changes that you need to know:
In short, the amendments to the Employment Act will bring Malaysian law in line with the guidelines set by the International Labour Organization (ILO).
Key changes include:
- The Employment Act now covers all employees, regardless of wages. However, some provisions don't apply to those earning over RM4,000 per month, such as:
- Overtime rates
- Allowance for shift work
- Termination benefits
- 98 days of maternity leave (from 60 days previously).
- 7 days of paternity leave (from none previously). However, certain conditions are attached:
- The father must be married to the mother in question.
- The father must have been employed by the same employer for at least 12 months.
- He must notify the employer at least 30 days from expected confinement (or as early as possible).
- This can be utilized up to the fifth child.
- Regular working hours reduced to 45 hours a week (from 48 hours a week previously). This is in line with the ILO's international labour standards.
- Break times (e.g. lunch hour) are not included as working hours.
- Employees can apply for flexible working arrangements.
- Employers who reject the request must provide reasons in writing why the application was rejected.
- The decision must be given within 60 days of the flexible working request.
- Employers are required to display a notice to raise awareness on sexual harassment in the workplace.
Get Up-to-Date with BrioHR
Keeping track of employment law updates can be daunting, especially for SMEs. With a HRMS system like BrioHR, such updates can be input into the system and ensure that your company is compliant with all current laws.
With a secure, scalable, user-friendly platform, BrioHR covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.
This enables business owners and HR teams to truly focus on what matters most – people.
Visit briohr.com and get a free demo now.
In Malaysia, the Employment Act 1955 is one of the most important laws that govern employment. The last time it was amended was in 2011 – and it’s overdue for a substantial overhaul.
And that’s what we got with the Employment (Amendment) Act 2022. Employers have been given a grace period to ensure their systems are up to date, but when all is said and done, the new law will kick in on 1 January 2023.
We’ve prepared for you a handy infographic to the key changes that you need to know:
In short, the amendments to the Employment Act will bring Malaysian law in line with the guidelines set by the International Labour Organization (ILO).
Key changes include:
- The Employment Act now covers all employees, regardless of wages. However, some provisions don’t apply to those earning over RM4,000 per month, such as:
- Overtime rates
- Allowance for shift work
- Termination benefits
- 98 days of maternity leave (from 60 days previously).
- 7 days of paternity leave (from none previously). However, certain conditions are attached:
- The father must be married to the mother in question.
- The father must have been employed by the same employer for at least 12 months.
- He must notify the employer at least 30 days from expected confinement (or as early as possible).
- This can be utilized up to the fifth child.
- Regular working hours reduced to 45 hours a week (from 48 hours a week previously). This is in line with the ILO’s international labour standards.
- Break times (e.g. lunch hour) are not included as working hours.
- Employees can apply for flexible working arrangements.
- Employers who reject the request must provide reasons in writing why the application was rejected.
- The decision must be given within 60 days of the flexible working request.
- Employers are required to display a notice to raise awareness on sexual harassment in the workplace.
Get Up-to-Date with BrioHR
Keeping track of employment law updates can be daunting, especially for SMEs. With BrioHR, the system can automatically capture such updates and ensure that your company is compliant with all current laws.
