With effect from 1 Sept 2022, the amendments to the Employment Act 1955 ("EA 1955") will come into force and the key amendments to the EA 1955 are:
Employment Amendment Act 2022
Changes in the first schedule
(Scope of employees being affected)
Currently, the EA 1955 only applies to employees who:
Apply to all employees irrespective of wages with exception on the following specific sections being applicable to employees earning less than RM 4,000 per month only
(i) work on rest days
(ii) work outside of normal working hours
(iii) work on public holidays
(iv) work on holidays on half working days
Maximum weekly working hours
Sick leave & hospitalisation leave
Utilisation of regular sick leave benefits when using the 60 days of hospitalisation
60 days of paid hospitalisation leave + 14-22 days of paid sick leave
Prohibited from terminating pregnant employees or employees who are suffering from illness arising from the pregnancy unless there is:
7 days of paid paternity leave per birth if the 2 pre-conditions are fulfilled:
Flexible working arrangements
Application of flexible work arrangements with their employers.
Employer has to state the ground of refusal of the application.
To obtain consent from the Director - General of Labour's before employing foreign workers.
(Failure to do so : RM 100K fine and/or 5 years in prison)
Notice of sexual harassment
Employers to exhibit clearly the notice on sexual harassment at all times.
Director General of Labour has the right to inquire and make orders on discrimination disputes between employers and employees.
(Failure to do so will be subjected to fine of not exceeding RM 50K and daily fine of not exceeding RM 1K in case of continuing offence)
Presumption of employment
Without a written contract of service project based workers (i.e. Freelancer/Independent contractor) are presumed to be employees, unless proven otherwise.