Not to Forget, Amendment to Employment Act 2022, Effective January 1, 2023

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The day after GE15, what comes next

Malaysia’s newly appointed Prime Minister Anwar Ibrahim said last Friday his primary focus would be on the cost of living as he takes office with a slowing economy and a country deeply split after a close election.

Another looming issue for Anwar to deal with is the budget for next year, which was proposed before the election was called but has yet to be passed.

Employment (Amendment) Act 2022

Just to remind you, the Employment (Amendment) Act 2022, which was finally passed on March 30, 2022, was originally scheduled to become law on September 1, 2022. However, it has been postponed to January 1, 2023, so companies will have more time to make the required changes.

It has been proclaimed, through a Ministerial Order, that all of the provisions of the Employment Act 1955, including the amendments approved by the Employment (Amendment) Act of 2022, shall apply to all employees regardless of the salaries they get.

However, eligibility for overtime pay, holiday pay, allowance for shift work, as well as termination, lay-off, and retirement benefits is restricted to employees who:

  1. either earn monthly wages of RM4,000 or less; or
  2. regardless of wages, employees who are engaged in or supervise manual labour or in operation or maintenance of any mechanically propelled vehicle operated for transporting passengers or goods or for commercial purposes.

Key Amendments to the Employment Act 1955

  • Maximum weekly working hours reduced from 48 to 45 hours
  • Maternity Leave increased from 60 to 98 consecutive days
  • Paternity Leave – 7 consecutive days
  • Hospitalisation Leave – 60 days in addition to normal sick leave entitlement
  • Forced Labour is prohibited
  • To exhibit Notice on Sexual Harassment
  • Flexible Working Arrangements are available
  • Discrimination in Employment is an offence

Some of the articles listed below may be of interest to you to read:

1. Employment (Amendment) Act 2022 confirms postponement to 1.1.2023:

2. Guides to Managing Malaysian Employment Act

3. How to Determine Hours of Work in Malaysia

4. An Overview of the Amendments to the Employment Act 1955

5. “Hours of Work” and “Normal Hours of Work”

6. Nov 18 and 19 – Special Public Holidays, Do you observe them?

7. What does HR actually Do?

8. Absence from Work Without Leave or Approval Constitutes Misconduct

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