A fair and equitable workplace begins with a clear understanding of rights and responsibilities for both employers and employees. In early 2023, the Malaysia Employment Act 1955 underwent a significant amendment, driven by shifts in currency values, the rising cost of living, and evolving workplace dynamics. These changes were implemented to enhance employee protection across various industries and included critical updates to the First Schedule, redefining the categories of employees covered by the Act.

This amendment represents a pivotal step in modernizing employment regulations to reflect Malaysia’s current socio-economic realities while aligning with international labor standards. Designed to benefit both employers and employees, these updates address contemporary workplace needs and foster a more balanced and inclusive working environment.

To help you navigate these changes, this concise guide breaks it down with a simple focus on what, who, and why.

What’s in it for an Employer?

For employees earning above RM4,000 per month, overtime and certain allowances are excluded, requiring employers to update their policies to reflect these changes. Employment contracts must also be revised to align with the new maximum weekly working hours of 45 hours.

Employers are now required to obtain prior approval from the Director General before hiring foreign workers, with non-compliance leading to fines of up to RM100,000 or imprisonment. Additionally, requests for flexible working arrangements must be addressed within 60 days, and valid reasons must be provided for any denials.

Additionally, employers must provide 98 days of maternity leave and ensure job security for pregnant employees. Male employees are entitled to 7 days of paid paternity leave under the new provisions. Discriminatory practices in the workplace can result in fines of up to RM50,000, with further penalties for non-compliance with corrective orders.

Fines for violations of the Act have increased to RM50,000. Forced labor is criminalized, with penalties of up to RM100,000 or two years of imprisonment. Lastly, apprenticeship contracts must now adhere to a minimum duration of 6 months and a maximum of 24 months.

Who Does It Apply To?

The amendments to the Employment Act 1955 significantly expanded its coverage to include all employees, irrespective of monthly wages. Previously, the Act primarily applied to employees earning up to RM2,000 per month or those in specific roles such as manual laborers and supervisors.

Why is there a need for such changes?

Such Acts are essential and extremely important to address modern workplace challenges, enhance employee rights, ensure fairness, and align with international standards. These updates protect both employees and employers, fostering an inclusive, compliant, and sustainable work environment that meets evolving economic and workforce demands.

How GoFlex helps you understand these changes?

Understanding your rights is vital for running a successful business. GoFlex’s 2-day workshop to master the Employment Act (Latest Amendment) equips HR professionals, leaders, and legal advisors with the tools to navigate legal complexities, ensure compliance, and foster a fair, efficient workplace.

What we bring to the table?

• Comprehensive Training Programs: Our training course simplifies the complexities of the Employment Act, covering everything from understanding amendments to practical steps for compliance.
• Industry Expertise: Led by seasoned professionals, we bring years of experience and deep insights into employment law trends and best practices to help your organization stay ahead.
• Hands-On Learning: Through real-world scenarios and interactive sessions, we empower participants to confidently implement the Employment Act amendments in their workplace.
• Tailored to Your Needs: Whether your team is new to the understanding of employment law or experienced in HR practices, our programs are customized to address your specific organizational goals.

Join our Mastering Employment Act (Latest Amendments) workshop on the 16th and 17th of December, 2024, at Level 3, KL Gateway Mall, Kuala Lumpur. This HRD Corp-claimable 2-day session is packed with valuable insights and practical knowledge to help you navigate the latest amendments with confidence. Participants will gain:

Real-world case studies to enhance understanding and application.

A clear understanding of Malaysia’s latest Employment Act amendments.

Practical steps for implementing changes in workplace policies.

Insights into ensuring compliance and avoiding legal risks.

A solid overview of fostering a fair and compliant work environment.