Top 10 Employment Act Amendments 2022 Affecting Businesses

The Minister of Human Resources has appointed 1 September 2022 as the date on which the Employment (Amendment) Act 2022. The Employment (Amendment of First Schedule) gazetted on 15 August 2022 will also come into operation on the same day.

UPDATE: Employment Act Amendments 2022 Postponed to 1st January 2023

1. Apply to all employees, with some sections subject to salary threshold of RM 4,000 /month

Before the new amendments to The Employment (Amendment of First Schedule) gazetted on 15 August 2022, majority of the EA only applied to employees earning up to RM 2,000 /month, or specified to those engaged in manual labour or supervising manual labour, and several other groups.

Effective on 1 September 2022 onward, Employment Act apply to all employees irrespective of wages, with some specific sections not applying to employees earning more than RM 4,000 /month.

List of sections that will not apply to employees earning more than RM 4,000 /month:

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

2. Paid maternity leave

Paid maternity leave have been increase from previous 60 days to the 98 days.

3. Restriction on the termination of pregnant employees

Employer are now prohibited from terminating an employee who is pregnant or is suffering from illness arising from the pregnancy. However, employer can still terminate pregnant employee if there’s a willful breach of contract, having misconduct or due to business closure.

4. Introduction of paternity leave

Married male employees will be entitled to 7 days of paid paternity leave for up to 5 confinements. It is regardless of the number of spouses.

It is subject to the male employee at least being employed for 12 month period before the paternity leave. Also needing to notified his employer about his spouse’s pregnancy at least 30 days before the expected pregnancy’s due date or as early as possible after the birth.

5. Reduced weekly maximum working hours

Weekly maximum working hours has been lowered from 48 hours per week to 45 hours per week.

6. Flexible working arrangements

Employees are able to apply for flexible working arrangement to vary the hours, days and place of work in written. Employer who receives the application are required to approve or refuse it within 60 days. If the application is being refused, the employer must clearly state reasoning of the refusal.

7. Revised sick leave & hospitalisation leave policies

Employees are now entitled to 60 days of paid hospitalisation leave in addition to 14 to 22 days of paid sick leave (subject to length of employment period).

8. Notice of sexual harassment

Employers must prominently display a notice at the place of employment to raise awareness on sexual harassment to educate employees.

9. Employment of foreign workers

Employer have to obtain the prior approval of the Director General before employing a foreign worker. Failure to do so, the employer shall be liable to a fine not exceeding RM 100,000 or to imprisonment for a term not exceeding five years, or to both.

Previously, employers only require to submit the particulars of the foreign employee to the Director General within 14 days of the employment.

10. Protection from discrimination

The Director-General of Labour has the authority to look into and provide rulings or decision about discrimination issues between employers and employees. Employers who fails to comply will be liable to a fine not exceeding RM50,000.

In the case of continuing offence, the employer shall be liable to a daily fine not exceeding RM1,000 for each day the offence continues after conviction.

Conclusion

Starting from 1 September 2022, a number of key amendments will take effect in the Employment Act. We at CORPSO recommend all employers to review their existing employment contracts and HR policies to ensure that it is comply with the new amended Employment Act 2022.

Section 7 of the new amended Employment Act states that any terms or conditions which are less favourable to an employee than those provided under the Employment Act will be void and of no effect. Contracts which were entered into before 1 September 2022 also included.

Make sure to keep an eye out for updated information about the Employment Act amendment on our website, as we will be providing more detailed information about the changes as they happen.

FAQs:

What is the maximum working hours per week?

The maximum working hours per week is 45 hours.

How long is the maternity leave in Malaysia?

The paid maternity leave is 98 days.