Employment Act 1955 Amendment

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Employment Act 1955 Amendment

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

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

Subsection 60(3)

Subsection 60A(3)

Subsection 60C(2A)

Subsection 60D(3)

Subsection 60D(4)

Subsection 60J

Rest day pay

Pay for work done beyond normal hours of work (normal OT)

The Minister may make regulations relating to the entitlement of allowance during shift work

Pay for work done during public holidays (in addition to holiday pay)

Pay for work done when a public holiday falls on a half working day

Termination, lay-off and retirement benefits

2) 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

3) Calculation of Wages for an incomplete month

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

4) 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.

5) Maternity Leave

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

6) 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:

Breach of contract
Misconduct
Closure of business

7) Hospitalisation Leave

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

Years of Service	Sick Leave	Hospitalisation	Total Sick Leave + Hospitalisation Leave
Below 2 years	14 days	60 days	74 days
2 years to 5 years	18 days	60 days	78 days
Above 5 years	22 days	60 days	82 days

8) 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

9) Employment of Foreign Worker

Application and prior approval from Director General are required:

Before employment.
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

10) 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

11) 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

12) 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 This email address is being protected from spambots. You need JavaScript enabled to view it. / +604 305 9600 or your Sales consultant, and we would be happy to assist you.