EMPLOYMENT ACT 1955 & AMENDMENTS

Date: 2 September 2022, Friday

Primary Legislations under Malaysian labour law

• Employment Act 1955
• Industrial Relations Act 1967 

The First Schedule to the Employment Act 1955 has been amended by way of Ministerial Order on 12 August 2022. The change now means that...

The Employment Act 1955 now applies to ALL employees！

The salary threshold to limit applicability of the EA has been removed. The EA now applies to:

"1. Any person who has entered into a contract of service."

There are exceptions

Not applicable to those earning a monthly wage of more than RM4,000 (unless the employee is a Non-Exempt Employee)

• Sub-Sections: Particulars
• 60(3): Payment for work on rest days
• 60A(3): Overtime payments for work in excess of the normal hours of work 
• 60C(2A): Any regulations that the Minister may make relating to entitlement of allowance during shift work
• 60D(3): Payment for work carried out on a public holiday
• 60D(4): Deeming provision for holidays on half work days - ordinary rate of pay payable will be a full day's pay
• 60J: Termination and lay-off benefits regulations

Latest Update: The HR Minister has announced that the Employment (Amendment) Act  2022 will take effect from 1 January 2023.

Anticipated Changes to the EA

Based on the revisions to the First Schedule, employers must be ready to meet the requirements of the EA in areas that include but are not limited to the following:

• maternity leave 产假
• has increased from 60 days to 98 days for all female employees.
• paternity leave 陪产假
• A married male employee shall be entitled to 7 consecutive days of paid paternity leave for each confinement, up to a maximum of 5 confinements and regardless of the number of spouses
• In order to be entitled for paternity leave, the married male employee must be:
• employed by the same employer at least 12 months before the commencement of such paternity leave
• he has to notify the employer of the pregnancy of his spouse at least 30 days from the expected confinement or as early as possible after the birth.
• maximum work hours per day / per week (must at least be reflected in the employment contract to be within EA limits even thought overtime may not be payable)
• The maximum of normal working hours for employees who are within the scope of Employment Act is reduced from 48 hours to 45 hours per week.
• minimum annual leave entitlement
• Less than 2 years service - 8 days
• 2 years or more but less than 5 years - 12 days
• 5 years or more - 16 days
• minimum sick leave entitlement (with a standalone 60 days leave if hospitalisation is required)
• Less than 2 years service - 14 days
• 2 years or more but less than 5 years - 18 days
• 5 years or more - 22 days
• flexible working arrangements (s.60P)
• An employee can make an application for flexible working arrangement (hours of work, days of work or place of work) to the employer.
• discrimination complaints
• ensuring conduct does not constitute "forced labour"
• application to the Director General of Labour (DGL) for approval before hiring foreign employees
• creating contracts with a 3rd party if there is an arrangement for the supply of  labour to such 3rd party as a Contractor for Labour
• notice to raise awareness on sexual harassment 

Reference:

https://www.zicolaw.com/resources/alerts/the-employment-act-1955-to-apply-to-all-employees/