Employment Act Malaysia 2022 updates | Work Hours Malaysia
employment-act

Employment Act Amendments 2022

Human Resources Minister M Saravanan has announced that the amendments on the Employment Act will be taking effect on the 1st September 2022.

What changes were made on the Employment Act 2022?

Shorter working hours

  • The maximum weekly working hours have been reduced from 48 hours per week to 45 hours per week.
  • Employees are also entitled to 30 minutes of rest after 5 consecutive hours of work.
  • A working day should not have more than 8 working hours and should not be spread across more than 10 hours per day.
  • Employees are entitled of 1 day rest per week.

Increase in working arrangement flexibility

An employee has the option to apply for flexible working arrangements. Employee can make a written request to the employer and the employer has to respond to the application request within 60 days.

Extended maternity and paternity leave

Maternity leave has increased from 60 days to 98 days.

Paternity leave has been introduced in this act. Only limited to 5 confinements, fathers are entitled to 7 days of paid paternity leave under these 2 conditions:

  • Employment with the current company has to be at least 12 months.
  • Employer must be notified at least 30 days prior to the expected birth date.

Protection against forced termination of employment on pregnancy grounds

Employers cannot forcefully terminate an employee when employee is pregnant unless:

  • Employee has breached condition(s) of the service contract
  • Misconduct in workplace
  • Closure of the business

Protection of foreign workers

Employers must receive permission from the Director General before recruiting a foreign worker. Failure to do so may result in a fine of not more than RM10000.00, imprisonment of not more than 5 years, or both.

Protection on force labour

What is forced labour? Forced labour is when the employer threatens, manipulates, deceives, and forces an employee to do any activity/service/work and then prevents employee from leaving the workplace after such activity/service/work is completed.

Force labour is a serious offense with a punishment of not more than RM10000.00, imprisonment of less than 2 years, or both.

Protection from sexual harassment

Employers are required to make effort in raising awareness on sexual harassment in the workplace to educate employees.

Protection from discrimination

The Director-General of Labour has the authority to investigate and provide rulings regarding discrimination between employees and employer. Failure to comply with the Director General’s order can result in a fine not exceeding RM50,000.00 and for continuing offence, a daily fine of up to RM1,000.00 for each day the offence continues.

Advance of salary

Employees can request for only 1 month of advance salary unless it is for the purpose of:

  • Purchase of house, landed property, renovation of property
  • Purchase of motor vehicles
  • Purchase of company shares
  • Purchase of computer
  • Medical and education fee for self and spouse

Who does the Employment Act affect?

Employment Act applies to all employees regardless of wages. Including employees working in these fields:

  • Manual labour
  • Supervisors of employees who engage in manual labour
  • Operation / maintenance of mechanical vehicles
  • Domestic servants

Some subsections in Employment Act will not apply to employees earning more than RM4,000.00 per month. The subsections are:

  • Overtime for work on rest days – Subsection 60(3)
  • Overtime for work outside of normal working hours – Subsection 60A(3)
  • Shift work allowance – Subsection 60C(2A):
  • Overtime and allowance for work on public holidays – Subsection 60D(3)
  • Overtime for work on holidays on half working days – Subsection 60D(4)
  • Termination and retirement benefits – Subsection 60J

What must employers do now?

Employers need to revise their existing employment contract and employee handbooks to ensure that it is in accordance with the latest Employment Act 2022. An employment contract is a written agreement that references the Employment Act and includes the termination clause of employment.

FAQ

  1. What are the correct Overtime Rates in accordance with Employment Act?

Overtime Rate
OT for normal working days 1.5
OT for rest days 2
OT for public holidays 3

  1. When should I pay my employees?

Salary payment musty be made within 7 days from the last day of any wage period.

  1. What are the benefits that I have to pay for employee’s termination/ retrenchment?

Service Period For Every Year of Employment
<2 10 Days
<5 15 Days
>5 20 Days

  1. How is salary calculated for employees who start working in the middle of the month?

Formula:
No. of working day eligible with working period Number of days of the wage period × Monthly Wages
Example:
Start Work Date : 7 July
Monthly Salary : RM 2,000
(31 - 7 + 1) 31 × 2000 = RM 1,612.90

  1. What is the leave entitlement for medical leave and annual leave?

  • Sick Leave Entitlement:
  • Service Period Days Entitled
    <2 14 Days
    <5 18 Days
    >5 20 Days
    Hospitalization 60 Days
  • Annual Leave Entitlement:
  • Service Period Days Entitled
    <2 8 Days
    <5 12 Days
    >5 16 Days

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