Key Amendments to Employment Act 1955

A - Introduction

The Employment (Amendment) Act 2022 was passed by Parliament in March 2022 and will be in force starting from January 1, 2023. The previous Human Resources Minister, Datuk Seri M. Saravanan announced this new date from the previous date of September 1, 2022 to allow employers to have more time to make adjustments to the new law. Most of the amendments were made based on the International Labour Organisation (ILO) Convention and aims to broaden the protection given to employees in Malaysia under the Employment Act 1955 (EA 1955). In this article, we will be highlighting the key amendments made that both employers and employees should be aware of. 

B - 7 Key Amendments

1) Scope of Employees Protected Widened 

Before the amendment, only employees who received monthly salaries of RM2,000 and below (and other specified categories of employees) are protected under EA 1955. However, amendments to the First Schedule now mean that all employees are protected, regardless of their salaries. This is a welcome change as previously employees earning more than RM2,000 could not rely on provisions of EA 1955 to protect them but could only rely on their employment contracts. However, those earning above RM4,000 monthly will not be entitled to overtime payments. 

2) Increased Maternity Leave

Working mothers who are recovering after giving birth are now entitled to 98 days of maternity leave from the previous 60 days as can be seen in S.37(1) EA 1955. 

3) Introduction to Paternity Leave

Working fathers who were previously not entitled to any paternity leave are now entitled to paid paternity leave of 7 days as can be seen in S.60FA EA 1955. Nonetheless, this is subject to several conditions: 

1. The expectant father must be married to the mother giving birth;

2. The expectant father must have been employed by the same employer for the last 12 months;

3. The expectant father must notify his employer at least 30 days prior to the expected due date; and

4. The paternity leave is limited to the births of 5 children.

4) Flexible Working Arrangement

Employees can now submit a written application for flexible working arrangement (to vary hours, days, or place of work) to their employer. The employer must either approve or reject the application within 60 days of receipt and grounds must be stated for any refusal. This can be seen in S.60P and S.60Q EA 1955. 

5) Change in Maximum Working Hours

The maximum number of working hours per week is now 45 hours (excluding mealtime), reduced from a longer period of 48 hours. This can be seen in S.60A EA 1955. This aims to provide a better work-life balance for employees. 

6) Notice to Raise Awareness on Sexual Harassment

A new provision, S.81H has been added to increase awareness on sexual harassment, wherein employers are now required by law to display a notice in a conspicuous location to raise awareness on sexual harassment in the workplace. 

7) Forced Labour Prohibited

A new provision, S.90B has been added to prohibit forced labour whereby an employer who threatens, deceives or forces an employee to do any work and prevents that employee from leaving a place of work after such work is done shall be liable to a fine not exceeding RM100,000 and/or imprisonment not exceeding 2 years. 

Last but not least, we hope you find this article helpful! Please do not hesitate to contact us if there is anything that we can assist you with!