Key Objectives of the 2025 Amendments
- Standardise labour protections across Malaysia
- Extend coverage to more employees regardless of wage level
- Improve employee welfare, leave entitlements, and workplace protections
- Strengthen enforcement through higher penalties
Sabah Labour Ordinance (Amendment) Act 2025 – Key Changes
1. Core Employment Provisions
| Area | Before Amendment | After Amendment (Effective 1 May 2025) |
|---|---|---|
| Salary Payment | Cash or bank | Bank, cash, or authorised payment instrument |
| Penalty for Offences | Fine up to RM10,000 | Fine up to RM50,000 |
| Minimum Working Age | No minimum age specified | Minimum age set at 13 years |
| Paternity Leave | Not provided | 7 days paid paternity leave |
| Employee Welfare | Not specified | Housing, accommodation & welfare provisions introduced |
2. Workplace Protection & Flexibility
| Area | Before Amendment | After Amendment |
|---|---|---|
| Dangerous Work | Not clearly defined | Prohibited work lists for children & young persons (Second & Third Schedules) |
| Discrimination | No express prohibition | Workplace discrimination prohibited |
| Forced Labour | No express prohibition | Forced labour prohibited |
| Sexual Harassment | No formal process | Investigation of sexual harassment complaints required |
| Flexible Work | Not provided | Flexible work arrangements allowed (subject to employer approval) |
Sarawak Labour Ordinance (Amendment) Act 2025 – Key Changes
1. Coverage, Hours & Leave Entitlements
| Area | Before Amendment | After Amendment (Effective 1 May 2025) |
|---|---|---|
| Ordinance Coverage | Only employees earning ≤ RM2,500/month & listed categories | Applies to all employees, regardless of wages or job type |
| Overtime Eligibility | Employees earning ≤ RM2,001/month | Employees earning ≤ RM4,000/month & all manual workers |
| Working Hours | 48 hours per week | 45 hours per week |
| Maternity Leave | 60 days | 98 days |
| Sick Leave & Hospitalisation | Combined (14 days sick + 46 days hospitalisation = 60 days) | Separate (14 days sick + 60 days hospitalisation = 74 days) |
2. Public Holidays & Wage Protection
| Area | Before Amendment | After Amendment |
|---|---|---|
| Compulsory Public Holidays | 4 holidays:
|
6 holidays:
|
| Salary Payment | Cash only | Cash, bank transfer or authorised payment instrument |
| Penalty for Offences | Fine up to RM10,000 | Fine up to RM50,000 |
| Minimum Working Age | No minimum age specified | Minimum age set at 13 years |
3. Workplace Rights & Modern Practices
| Area | Before Amendment | After Amendment |
|---|---|---|
| Paternity Leave | Not provided | 7 days paid paternity leave |
| Discrimination | No express prohibition | Workplace discrimination prohibited |
| Forced Labour | No express prohibition | Forced labour prohibited |
| Sexual Harassment | Not clearly regulated | Mandatory workplace sexual harassment investigations |
| Flexible Work | Not provided | Flexible work arrangements allowed (subject to employer approval) |
| Dangerous Work | Not clearly defined | Prohibited work lists for children & young persons (Second & Third Schedules) |
What This Means for Employers
- Review and update employment contracts and HR policies
- Adjust working hours, leave entitlements, and overtime practices
- Implement proper mechanisms for harassment complaints and investigations
- Ensure wage payments follow approved methods
- Prepare for stricter enforcement and higher penalties
Failure to comply may result in fines of up to RM50,000 per offence.
What This Means for Employees
- Broader legal protection regardless of salary level
- Longer maternity and clearer sick leave entitlements
- New rights to paternity leave and flexible work arrangements
- Stronger safeguards against discrimination, forced labour, and harassment
Final Thoughts
protection for both employees and employers.For organisations, early compliance is key. For employees, understanding these rights ensures they are fully protected under the law.
Need Help Navigating the 2025 Labour Law Changes?
The Sabah & Sarawak Labour Ordinance (Amendment) Act 2025 introduces critical changes that directly impact your HR policies, contracts, and compliance obligations.
If you’re unsure where to start or want to ensure your organisation is fully aligned, our HR experts can help you review, update, and implement the necessary changes with confidence.
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