![[Malaysia] Employment Act changes now in effect](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Kuala-Lumpur-Malaysia--June--457903731_1200x.jpg?v=1672892060)
Malaysia’s government is introducing a string of expanded benefits for employees under the newly implemented Employment (Amendment) Act 2022, HRD reports.
The legislation began taking effect on January 1, it amends Malaysia's Employment Act 1995 to bring about changes to working hours, leave entitlements and flexible working arrangements, among others.
Under the new legislation, weekly work hours for employees are reduced from 48 to 45 hours, according to a document published on the Attorney General's Chambers of Malaysia website.
Maternity and paternity leave
In addition, the legislation reportedly introduces seven days of paid paternity leave for married male workers who have been employed by the same employer for at least 12 months.
For female employees, maternity leave is also expanded to 98 days from the previous 60 days.
The amendment also makes it an offence for employers to terminate a female employee under maternity leave who is suffering from an illness arising from her pregnancy.
According to the amendment, if an employee under maternity leave is terminated, the "burden of proving that such termination is not on the ground of her pregnancy or on the ground of illness arising out of her pregnancy shall rest on the employer."
Flexible work arrangements
Employees can also reportedly apply for a flexible working arrangement under the newly implemented legislation. Employers would be required to approve or refuse this application within 60 days.
"The employer shall inform the employee in writing of the employer's approval or refusal of the application," the document reads. "[In] the case of a refusal, the employer shall state the ground of such refusal."
Flexible work was already a divisive subject before the implementation of the Employment (Amendment) Act. An Ipsos report previously revealed that 74 per cent of employees want flexibility in their workplace.
However, employers reportedly said that some would be unable to implement flexible work due to the nature of their jobs. Malaysia's Human Resources Minister V. Sivakumar responded to such concerns, saying that the newly implemented legislation will not mandate them to implement flexible working hours.
Presumption of employment
The new legislation also sets out guidelines on who is an employee and an employer in the absence of a written contract of service. According to the amendment, a person is presumed to be an employee if they are provided with tools, materials, or equipment by another person to execute work and their:
- manner of work is subject to the control or direction of another person
- hours of work are subject to the control or direction of another person
- work constitutes an integral part of another person's business
- work is performed solely for the benefit of another person
- pay is made in return for work done at regular intervals and such payment constitutes the majority of their income.
An individual will be presumed to be an employer if:
- they control or direct the manner of work of another person
- they control or direct the hours of work of another person
- they provide tools, materials, or equipment to another person to execute work
- the work of another person constitutes an integral part of their business
- another person performs work solely for their benefit
- they are paid in return for work done for them by another person
The amendments are said to benefit gig workers who have been urging for better protections since the industry's pandemic boom.
Though gig workers in Singapore are not considered employees, they will soon reportedly receive work injury compensation and pension coverage benefits enjoyed by regular employees.
In the Philippines, a bill was filed in 2022 seeking to recognise gig workers as regular employees and give them all normal worker protections.
Source: HRD
(Links via original reporting)
Malaysia’s government is introducing a string of expanded benefits for employees under the newly implemented Employment (Amendment) Act 2022, HRD reports.
The legislation began taking effect on January 1, it amends Malaysia's Employment Act 1995 to bring about changes to working hours, leave entitlements and flexible working arrangements, among others.
Under the new legislation, weekly work hours for employees are reduced from 48 to 45 hours, according to a document published on the Attorney General's Chambers of Malaysia website.
Maternity and paternity leave
In addition, the legislation reportedly introduces seven days of paid paternity leave for married male workers who have been employed by the same employer for at least 12 months.
For female employees, maternity leave is also expanded to 98 days from the previous 60 days.
The amendment also makes it an offence for employers to terminate a female employee under maternity leave who is suffering from an illness arising from her pregnancy.
According to the amendment, if an employee under maternity leave is terminated, the "burden of proving that such termination is not on the ground of her pregnancy or on the ground of illness arising out of her pregnancy shall rest on the employer."
Flexible work arrangements
Employees can also reportedly apply for a flexible working arrangement under the newly implemented legislation. Employers would be required to approve or refuse this application within 60 days.
"The employer shall inform the employee in writing of the employer's approval or refusal of the application," the document reads. "[In] the case of a refusal, the employer shall state the ground of such refusal."
Flexible work was already a divisive subject before the implementation of the Employment (Amendment) Act. An Ipsos report previously revealed that 74 per cent of employees want flexibility in their workplace.
However, employers reportedly said that some would be unable to implement flexible work due to the nature of their jobs. Malaysia's Human Resources Minister V. Sivakumar responded to such concerns, saying that the newly implemented legislation will not mandate them to implement flexible working hours.
Presumption of employment
The new legislation also sets out guidelines on who is an employee and an employer in the absence of a written contract of service. According to the amendment, a person is presumed to be an employee if they are provided with tools, materials, or equipment by another person to execute work and their:
- manner of work is subject to the control or direction of another person
- hours of work are subject to the control or direction of another person
- work constitutes an integral part of another person's business
- work is performed solely for the benefit of another person
- pay is made in return for work done at regular intervals and such payment constitutes the majority of their income.
An individual will be presumed to be an employer if:
- they control or direct the manner of work of another person
- they control or direct the hours of work of another person
- they provide tools, materials, or equipment to another person to execute work
- the work of another person constitutes an integral part of their business
- another person performs work solely for their benefit
- they are paid in return for work done for them by another person
The amendments are said to benefit gig workers who have been urging for better protections since the industry's pandemic boom.
Though gig workers in Singapore are not considered employees, they will soon reportedly receive work injury compensation and pension coverage benefits enjoyed by regular employees.
In the Philippines, a bill was filed in 2022 seeking to recognise gig workers as regular employees and give them all normal worker protections.
Source: HRD
(Links via original reporting)