Malaysian government asked to delay amendments to employment act

Amendments to the employment act, scheduled to take effect on September 1, are estimated to cost employers nationwide an additional RM110.99 billion (US$24.8 billion) a year, according to the MEF. 

In light of the challenging economic situation, the government should reconsider implementing the amendments, said Datuk Dr Syed Hussain Syed Husman, President of the MEF.

MEF estimated that companies would have to cough out the additional amount from the increase in workers’ overtime costs; a reduction of working hours to 45 hours per week, from 48 hours; an increase in maternity leave from 60 to 98 days; and paternity leave for male workers of seven continuous days per birth.

READ: Malaysia urged to delay implementing reduced working hours

“Employers generally strive to comply with the statutory requirements but there were situations where they resigned to the fact that they do not have the financial capacity to do so,” said he added.

MEF also said that employers will have to grapple with other amendments like flexible working arrangements, 60 days of hospitalisation leave per year on top of non-hospitalisation sick leave, and new procedures for foreign workers.