Ramadan Working Hours in Malaysia: Can Employers Legally Reduce Hours?

Every Ramadan, many employees and employers ask the same question: must working hours be reduced?

In Malaysia, the legal position for the private sector is clear. While many companies choose to adjust schedules, the law itself does not automatically shorten working hours during the fasting month.

This guide explains what Malaysian labour law says and what employers should consider.

What Does the Law Say About Working Hours?

Under the Employment Act 1955, there is no statutory requirement for private employers to reduce working hours during Ramadan.

The Act sets maximum limits under Part XII (Rest Days, Hours of Work and Other Conditions of Service), including:

Maximum 8 hours per day
Maximum 45 hours per week
At least 1 rest day per week

Ramadan does not amend, suspend, or override these provisions.

What This Means

Employers may maintain normal contractual working hours.
Employees are required to work their agreed schedule.
There is no automatic legal right to shorter working days in the private sector.

Any reduction of hours depends on company policy or employer discretion.

Why Do Government Offices Often Reduce Hours?

Government offices commonly reduce working hours during Ramadan through administrative circulars or internal service directives.

These are policy-based decisions for civil servants. They are not amendments to labour legislation and therefore do not create obligations for private companies.

What Do Private Companies Usually Do?

Although not required by law, many private employers voluntarily introduce flexible arrangements during Ramadan to support employees who are fasting.

Common practices include:

Earlier start and finish times
Shorter lunch breaks
Flexible clock-in and clock-out systems
Temporary hybrid or remote work arrangements

However, these are business decisions rather than legal requirements.

What About Overtime During Ramadan?

Ramadan does not change overtime rules.

Under the Employment Act:

Work beyond normal daily hours must be paid at overtime rates.
Work on rest days attracts rest day rates.
Work on public holidays attracts public holiday rates.

There is no special Ramadan overtime calculation.

Failure to comply with overtime provisions may expose employers to complaints and penalties under the Act.

Can Employers Reduce Salary If Hours Are Shortened?

If an employer voluntarily reduces working hours, salary cannot be unilaterally reduced unless:

The employment contract permits it, or
There is mutual agreement between employer and employee.

Unlawful salary deductions may breach statutory protections and lead to disputes.

Employers must also ensure compliance with minimum wage requirements.

What Rules Should Employers Follow?

Employment rights in Malaysia are governed by:

Employment contract
Company policies
Employment Act 1955 (minimum statutory protection)

The Act sets the minimum standards. Employers may offer better benefits, but not less than what the law requires.

If a company formally implements shorter Ramadan hours through policy and practice, that arrangement may become contractually binding.

What Are the Legal Risks?

Employers should be cautious about:

Reducing salary without proper agreement
Failing to calculate overtime correctly
Applying Ramadan flexibility inconsistently among employees

Inconsistent or unlawful practices may result in complaints to the Labour Department.

Best Practice for Employers

Even though reduced hours are not legally required, many employers adopt structured flexibility to maintain productivity and morale.

Clear communication, written documentation, and consistent application help reduce misunderstandings and compliance risks.

FAQs

Is it illegal if my employer keeps normal working hours during Ramadan?

No. The Employment Act does not require private employers to reduce working hours during Ramadan.

Can I refuse to work normal hours because I am fasting?

Generally no, unless the hours exceed statutory limits or breach your employment contract.

If the company reduces working hours, can salary be reduced?

Not automatically. Salary reductions require contractual or mutual legal basis.

Does Ramadan change overtime calculations?

No. Overtime, rest day, and public holiday rates remain unchanged.

Why do government offices reduce hours but private companies do not?

Government offices operate under administrative directives. Private employers are governed by the Employment Act, which does not mandate Ramadan hour reductions.

Need Extra Staff During Ramadan? Find the Right Talent Faster

Start posting on AJobThing today and connect with millions of active Malaysian jobseekers ready to apply.