Employment Act 1955 Amendment

Malaysia Employment Act 1955 Amendment effective 1 January 2023, in summary:-

Provisions that DO NOT apply to those whose wages exceeding RM4,000 a month

• Subsection 60 (3) – Rest day pay
• Subsection 60A (3) – Pay for work done beyond normal hours of work (normal OT)
• Subsection 60C (2A) – The Minister may make regulations relating to the entitlement of allowance during shift work
• Subsection 60D (3) – Pay for work done during public holidays (in addition to holiday pay)
• Subsection 60D (4) – Pay for work done when a public holiday falls on a half working day
• Subsection 60J – Termination, lay-off and retirement benefits

Work Hours

• • • The basic work hours will be reduced from forty-eight (48) hours per week to forty-five (45) hours per week
    • Disallow to extend break time / rest time to meet the forty-five (45) hours requirement

      

Calculation of Wages for an incomplete month

• • • Calculate wages for an employee who works for less than a full month:

      

Paternity Leave

• Introduction of Paternity Leave of seven (7) consecutive days for up to five (5) confinements irrespective of number of spouses.
• A married male employee shall be entitled to paternity leave if he has been employed by the same employer at least twelve (12) months before the commencement of the paternity leave.
• He must notify his employer of the pregnancy of his spouse at least thirty (30) days from the expected confinement or as early as possible after the birth.

NOTE:

• • • Confinement is interpreted as ‘parturition resulting after at least twenty-two (22) weeks of pregnancy in the issue of a child or children, whether alive or dead.
    • If the employee’s wife suffers a miscarriage after at least twenty-two weeks, he shall be eligible for paternity leave.

Maternity Leave

• • • The maternity leave amended from sixty (60) days to ninety-eight (98) days for both Malaysia and foreign workers.

Protection for Pregnant Mothers against Termination

• • • The amendment also includes more protection for pregnant female employees, as well as those suffering from pregnancy-related illnesses.
    • It will be an offence under the Employment Act 1955 for employers to terminate (or give notice of termination) to this category of employees, except:
      1. Breach of contract
      2. Misconduct
      3. Closure of business

Hospitalisation Leave

• • The amendment provides for 60 days of Hospitalisation leave. Sick leave remains unchanged.
  • Sick Leave will not be part of hospitalisation leave.

2 years to 5 years 18 days 60 days 78 days Above 5 years 22 days 60 days 82 days

Flexible Work Arrangement (FWA)

• • • Employee may make an application for flexible working arrangement to vary the hours of work, days of work or place of work, in relation to his employment in writing.
    • The employer shall inform the employee in writing within sixty days (60) of the employer’s approval or refusal of the application.
    • In a case of a refusal, the employer shall state the ground of such refusal

Employment of Foreign Worker

• • • Application and prior approval from Director General are required:
      1. Before employment.
      2. Subject to employer has not been convicted of any offence under any written law.
    • Upon approved:
      furnish require employment particulars to the Director General, if directed within fourteen (14) days
    • Termination:
      If the service of the foreign employee is terminated on the following grounds
      • by the employer
      • expiration of the employment pass issued by the Immigration Department of Malaysia
      • by reason of repatriation or deportation

      Employers are required to notify the Director General of any termination of foreign workers within thirty (30) days from the date of termination.

      If the service of the foreign employee is terminated on the following grounds

      • by the foreign worker
      • absconded

      Employers are required to notify the Director General within fourteen (14) days from the date of termination

Sexual Harassment Awareness

• • • Employers are required to conspicuously exhibit a notice to raise awareness of sexual harassment in the workplace
    • On top of existing provision of inquiry into the complaint by the employer
    • Fails to inquire into the complaint liable to a fine not exceed RM50,000

Employment of Discrimination

• • • The Director General may inquire and make orders on discrimination disputes in employment between employer and employee
    • Employers that fail to comply with any such orders could be subject to a fine not exceeding RM50,000, subsequent offence liable to daily fine of RM100,000

Prohibition of Forced Labour

• • To prohibit forced labour whereby employer who threatens, deceives, or forces an employee to do any activity, service or work and prevents that employee from leaving place or area where such activity, service or work is done, commits an offence
  • A fine not exceeding RM100,000 or imprisonment not exceeding two (2) years or to both.

What you need to do?

Kindly review your current HR and payroll policy to make the necessary adjustment / amendment effective 1st January 2023.

HR Audit and Payroll Audit Services

We provide HR Audit and Payroll Audit services to review your company policy. Contact enquiry@mywave.biz / +604 305 9600 and we would be happy to assist you.