In response to the member’s request for an extension of time (EOT) to submit the Income Tax Return Forms(ITRFs), CTIM has sent an appeal letter to the Inland Revenue Board of Malaysia (IRBM).
AND the Malaysian Inland Revenue Board has replied as follows:
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Trade Union is an organised association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests.
The Trade Unions (Amendment) Bill 2022 was drafted following the principles of the International Labour Organization (ILO) Convention 87 on Freedom of Association and Protection of the Right to Organise.
The initiative to encourage the formation of multiple trade unions, as well as omnibus trade unions, the purpose of this bill is, among other things, to remove restrictions on the formation of trade unions based on certain establishments or similarities in trade, occupation, or industry.
The power of the director-general of trade unions to refuse registration of a trade union would be removed if the proposed deletion of paragraph (a) of Sections 2 and subsection 2(2) for the definition of “trade union” or “union” in the existing Act were to take place.
This will make it possible for trade unions to be as diverse as possible; however, this would result in open floodgates.
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The Ministry of Human Resources (MoHR) announced that it would be delaying the implementation of the Amendments to the Employment Act 1955 until January 1, 2023, rather than the previously scheduled September 1, 2022.
Minister Datuk Seri M Saravanan, who was in charge of making the decision, stated that it arrived after consultations with several different groups, such as the employers’ association, the chambers of business, and the associations representing locals and foreigners.
Since the Minister has only made this announcement in an unofficial capacity, it will be necessary to have a gazetted order in place to postpone the date of operation from September 1, 2022, to January 1, 2023.
About the Employment (Amendment) Act 2022, you might be wondering why I keep harping on the fact that the government is rushing into this before it is completely ready.
This is because the Federation of Malaysia was formed following the merger of the Federation of Malaya, Sarawak, and North Borneo (Sabah) on 16 September 1963,
As a result, there are 3 separate pieces of legislation for Malaysian employees in Malaysia.
The Employment Act 1955 for Peninsular Malaysia;
Sabah Labour Ordinance 1950 for Sabah; and
Sarawak Labour Ordinance 1952 for Sarawak.
In the meantime, Malaysia also has three laws protecting part-time employees’ rights.
Employment (Part-time Employees) Regulations of 2010.
The Labour (Part-Time Employees) (Sarawak) Rules 2013
The Labour (Part-Time Employees) (Sabah) Rules 2013
Specific concerns were not addressed in the Employment (Amendment) Act 2022.
How about Sabah and Sarawak
The Sabah Labour Ordinance 1950 and Sarawak Labour Ordinance 1952 are not revised concurrently at any point in time.
How about Part-Time Employees
The working hours per week are reduced from 48 to 45 hours due to the Amendments; however, the regulations/rules governing part-time employees are not revised to reflect this reduction.
As a consequence of this, when it is not possible to determine the normal working hours of a full-time employee, or there is no full-time employee employed in a similar capacity in the same organisation in a similar role, the normal working hours of a full-time employee shall be deemed to be 8 hours in 1 day or 48 hours in 1 week.
Flexible Working Arrangement
New Part XIIC – Flexible Working Arrangement is introduced into the Employment Act 1955; employees can request “flexible working arrangements” to change their working hours, days of the week, or place of employment.
Consequently, in my opinion, the definition of “ordinary rate of pay” and “hourly rate of pay” needed to be revised correspondingly to reflect this new norm.
Currently, the definition of:
The ordinary rate of pay: means wages as defined in section 2, whether calculated by the month, the week, the day, the hour, or by piece rate, or otherwise, which an employee is entitled to receive under the terms of his contract of service for the regular hours of work for one day, but does not include any payment made under an approved incentive payment scheme or any payment for work done on a rest day on any gazetted public holiday granted by the employer under the contract of service or any day substituted for the gazetted public holiday;
ORP = monthly rate of pay/26
The hourly rate of pay: means the ordinary rate of pay divided by the regular hours of work.
HRP = ORP/normal hours of work
On 12 August 2022, the Employment (Amendment of First Schedule) Order 2022 was gazetted and will come into force from 1 September 2022.
Under the Order, all employees who receive earnings of up to RM4,000 per month will be eligible for overtime pay.
The ORP and HRP calculations are pretty essential. Regarding calculating overtime pay, we are required to apply it.
For instance: an employee whose employment contract stipulates that she must work 7.5 hours per day, 6 days per week, and her monthly salary is RM3,120:
an ordinary rate of pay of RM120 (3120/26); and
an hourly rate of pay of RM16 (120/7.5).
Insufficient Time for Preparation
Even though the Employment (Amendment) Act 2022 was gazetted into law on May 10, 2022, the Employment (Amendment of First Schedule) Order 2022 was gazetted on August 12, 2022.
It left less than 20 days for businesses to prepare for it I commend the Minister of Human Resources for putting up this idea, even though this announcement came way too late to be considered timely.
Labour Law Reform Coalition (LLRC) – Submission Of Memorandum On Trade Union Bill, Sabah And Sarawak Labour Ordinances To MOHR
The Labour Law Reform Coalition (LLRC), comprised of 58 different trade unions and non-governmental organisations, delivered three memorandums to the Ministry of Human Resources in Putrajaya on July 15, 2022.
On behalf of the Minister’s office, the memorandums are being received by Mr. Elvis, a member of the Bahagian Khidmat Pengurusan MOHR.
Disclaimer: The information in this article should not be construed as legal advice, and we assume no responsibility or liability for any decisions made or actions taken from this article should not be construed as legal advice, and we assume no responsibility or liability for decisions made or actions taken as a result of reading this article.
Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.
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On August 9, 2022, the Employees’ Social Security (Amendment) Bill 2022 was approved by the Dewan Negara (House of Senates) of the Malaysian Parliament to make changes to the Employees’ Social Security Act 1969.
Employment Insurance System (Amendment) Bills 2022
The Employment Insurance System (Amendment) Bill 2022 was also passed by the Dewan Negara (House of Senates) of the Malaysian Parliament on August 9, 2022, to make changes to the Employment Insurance System Act 2017.
What the Bills All About
Due to the amendments, the maximum limit of the insurability amount of an employee’s wages has been increased from RM 4,000.00 to RM 5,000.00 [effective September 1, 2022].
This would have the effect of improved protection for employees earning RM 5,000.00 or more as a result of higher contribution rates in the event of:
Accident or an occupational disease arising out of and in the course of his employment or Invalidity; or
Loss of employment.
Following the delivery of the Bills to the Yang di Pertuan Agong for Royal Assent, the laws will then be gazetted. It will come into effect on a date that is to be set by the Minister of Human Resources by notification in the Gazette [At the time of writing this article, the "appointment of date of coming into operation" Order hasn't been gazetted in the Federal Legislation Portal]. But...
APPOINTMENT OF DATE OF COMING INTO OPERATION
IN exercise of the powers conferred by subsection 1(2) of the Employees’ Social Security (Amendment) Act 2022 [Act A1658], the Minister appoints 1 September 2022 as the date on which the Act comes into operation.
This was gazetted in the Federal Legislation Portal on August 30, 2022.
P.U. (B) 395_2022 Appointment of Date of Coming into Operation Act a1658 – Employees’ Social Security (Amendment) Act 2022 👇
IN exercise of the powers conferred by subsection 1(2) of the Employment Insurance System (Amendment) Act 2022 [Act A1657], the Minister appoints 1 September 2022 as the date on which the Act comes into operation. This was gazetted in the Federal Legislation Portal on August 30, 2022.
P.U. (B) 393_2022 Appointment of date of Coming into Operation Act A1657 – Employment Insurance System (Amendment) Act 2022 👇
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On August 19, 2022, Bursa Malaysia Berhad (also known simply as Bursa Malaysia） published the third digital Guidebook as part of its Public Listed Companies Transformation (‘PLCT’) Programme for users to gain an understanding and appreciation of critical areas that will support towards a more responsible and high performing Corporate Malaysia.
To obtain a better appreciation of the principles and methods espoused in this Guidebook, various real-life examples, videos, templates and case studies have been included.
This Guidebook also aims to showcase lessons learnt, considerations for effective engagement strategies as well as methods employed by various companies.
The PLCT Programme, which runs through 2025 is underpinned by five pillars, namely:
Be Purpose and Performance-Driven;
Grow as Sustainable, Socially Responsible and Ethical Organisations;
Have Strengthened Stakeholder Management and Investor Relations;
Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.
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