In a significant development for the Malaysian workforce, recent amendments to the Employment Act 1955 came into force this year, aiming to provide better protection and flexibility for employees while aligning local regulations with international labor standards.
Among the key changes introduced are:
- Extended maternity leave from 60 days to 98 days.
- Introduction of paternity leave, granting 7 days of paid leave for eligible fathers.
- Flexible working arrangements, where employees can apply for flexible hours or remote work subject to employer approval.
- Increased penalties for employers who violate the Act, with higher fines introduced to deter non-compliance.
These reforms impact a wide spectrum of employment relationships, particularly for small and medium enterprises (SMEs) that need to revise internal policies, employment contracts, and HR manuals.
At Nordin Rauf & Co, we advise both employers and employees to carefully review their current arrangements. Employers are encouraged to update employment contracts and consult legal advisors to ensure compliance. Employees, on the other hand, should be aware of their new entitlements under the law.
Our firm provides consultation and legal support for labor-related disputes and compliance reviews. Whether you are adjusting HR policies or facing a workplace dispute, we’re here to assist.
For advice on how these changes may impact your business or employment rights, reach out to our team today.