Employment Act Amendment Enforcement Delayed Until Jan 1

The Ministry of Human Resources (MoHR) today revealed that the modifications to the Employment Act of 1955 will be implemented on January 1, 2023, rather than September 1, 2022.

Minister Datuk Seri M Saravanan stated that the government reached the decision after consultations with numerous stakeholders, including the employers' association, chambers of commerce, and associations comprising both locals and foreigners.

 

Allowing businesses to fully recover

According to the minister, the feedback he obtained during these meetings suggested that the nation is still in the early stages of economic recovery and that it might take time for enterprises to fully recover.

"They have all said they need more time, as we are now in the economic recovery phase.

"The ministry has discussed the matter with the Cabinet, and they all agreed to delay the implementation of the amendments to January 1, 2023," he said during a press conference held today.

He also emphasised that the employers had sought a more extended grace period as their businesses were still rebuilding from the recession.

"I cannot give them (the employers) an indefinite date. Everybody wants to know when. So now, I'm giving a definite date so that everyone will be prepared. If I didn't give a date, they would say that they weren't prepared (to adapt). By right, it should be implemented now."

During the March session of Parliament, the government passed the Employment (Amendment) Act 2022.

 

The amendments

The changes, which will be enforced in Peninsular Malaysia and Labuan, will also enable employees to work flexible hours, allowing them to choose their work location, time, and days.

This includes the ability to work from home during circumstances such as the pandemic.

The amended law also makes it illegal to fire female employees who are pregnant or suffering from disease due to their pregnancy, except for: 

• Misconduct, 
• A deliberate breach of the employment contract, or 
• Business closure.

It also raises the maximum fine penalties for crimes under the act from RM10,000 to RM50,000 while increasing the existing punishment of a fine previously capped at RM50,000 to RM100,000.

 

Foreign labour shortage

Saravanan also addressed the issue of foreign labour shortages, stating that it will take some time before the quantity of available workers equals the demand of companies.

"They (foreign workers) have started coming in. It's just that since we haven't allowed foreign workers to enter for almost three years, the process takes time," he said.

Saravanan also indicated that the government was looking into new ways to address the word "pekerja asing."

"We are now studying, and there have been requests that we refrain from using the term 'pekerja asing.' Even with the word 'asing,' we are having difficulty and are looking for other definitions. "We hope to develop a new definition soon," he continued.

The minister also reaffirmed that the government was committed to ensuring that all foreign employees in Malaysia were treated appropriately and were not exploited.

"We're doing everything we can to get from tier 3 to at least tier 2." And we are attempting to avoid forced labour. As a result, we should not discriminate against any personnel, whether they are local or foreign workers."

 

Source: The Malaysian Reserve