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Employment (Amendment) Act 2022 Coming into Force

If you're looking for a Company Secretary in Malaysia to keep your company in compliance, or you would like a one-click solution to all your payroll needs, contact us today.

The Employment (Amendment) Act 2022, tabled for its first reading back in October of 2021 and announced almost a year later in June of 2022, will finally be coming into effect on September 1st, 2022.

Some key changes for employers to take note of are:

Working Hours

The maximum working hours per week have been reduced from 48 hours per week, to 45 hours per week. This means all employment contracts under the Employment Act 1995 (EA 1995) will now need to be reviewed and revised.

Flexible Working Arrangements

Employees are now going to be able to apply in writing for flexible working arrangements with their employers. The variables include place of work, days of work, and hours of work.

Employers will still be able to exercise executive decision on these applications (within 60 days of the application being made) and will need to include a reason for their refusal.

Maternity and Paternity Leave

Paid maternity leave will be increased from 60 days to 98 days. Paternity leave has been introduced and will allow 7 days paid leave, only up to a total of 5 confinements (regardless of the number of spouses).

Further conditions apply to paternity leave, such as the employee will need to have been employed by the same employer at least 12 months immediately before the commencement of the paternity leave, and he has notified his employer of his spouse's pregnancy at least 30 days before the expected confinement date or as early as possible after the birth.

Protection Against Termination on the Grounds of Pregnancy

Employers are prohibited from terminating an employee on the grounds of a pregnancy, unless they satisfy the following has occured:

  1. willful breach of a condition of the contract of service;

  2. misconduct; or

  3. closure of the employer's business

Employment of a Foreign Employee

Employers may only hire foreign employees after obtaining the approval of the Director General.

The changes come into effect on 1st September 2022, and come with heavy penalties in cases of breach and non-compliance. To make sure you're compliant without the hassle, get onto our client list today. Call 012 229 7733 and schedule a consultation today.

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