Top things to know about the Malaysian Employment ACT 1955 amendments 2022

✳EA 1955 now covers ALL employees irrespective of wages

While the Employment Act 1955 only covered employees who received monthly salaries of RM2,000 and below (as well as other specified categories of workers). This section of the Act has arguably been long overdue for change, and now, amendments to the First Schedule of the Act mean that all employees are covered — no matter how much they are paid. 

However those earning above RM4000 per month will be exempted in certain provisions. These provisions are: -Section 60(3) - Overtime rates for employees working on rest days 

1. Section 60A(3) - Overtime rates outside working hours 

2. Section 60C(2A) - Allowance for shift-based work 

3. Section 60D(3) - Overtime on public holidays

4. Section 60D(4) - Overtime for half working days on holidays

5. Section 60J - Termination, lay-off, retirement benefits 

✳. Flexible Working Arrangements(FWA)

With the onset of the pandemic, hybrid working condition has become an important element for both employees and employers. The amended Employment Act now includes Part XIIC

Under Section 60P and 60Q, employees can now apply in writing for flexible work arrangements from employers. Employers must respond with a decision within 60 days, and in cases of rejection, reasons must be given to employees. 

✳. Change in weekly working hours

From 1st January 2023, this maximum number has now been reduced to 45 hours per week (excluding meal time).

✳ Maternity leave

It is now 98 days instead of 60 days previously. In case of miscarriage, its from 22 weeks. Also, maternity allowance is only provided for the first five children,

✳. The introduction of (paid) paternity leave

The 2022 amendment will also bring forth for the the first time, a provision for paid paternity leave. This is a landmark moment for employment law in Malaysia, one that will see working fathers entitled to 7 days of consecutive, paid paternity leave under Subsection 60FA. 

Some conditions, however:

1. The male employee must be married to the mother in question 

2, He must have been employed by the same employer for at least 12 months 

3. He must notify the employer at least 30 days from expected confinement (or as early as possible)

✳ Protection for pregnant mothers against termination 

It is now 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 contraction 

2. Misconduct 

3. Closure of business

✳. More awareness for sexual harassment 

A new section that purportedly looks to raise awareness on sexual harassment in the workplace is Section 81H. Now, employers are required to display a notice to raise awareness on sexual harassment in the workplace. This notice must be placed in a conspicuous location, and it must be displayed at all times.

✳. Employment of foreign workers 

Employers are now required to obtain prior approval from the Director-General in order to hire foreign employees. Meanwhile, employers must also notify the Director-General within 30 days if/when foreign employees are terminated.