Employment Act implementation set for further delay in Malaysia

The Federation of Malaysian Manufacturers (FMM) is considering requesting another deferral of the implementation of the amended Employment Act.
By: | September 8, 2022

Tan Sri Soh Thian Lai, President of the FMM, said many small- and medium-scale enterprises (SMEs) were not ready for the amendments based on survey findings. 

“Previously, we had proposed for the ministry to defer the implementation for a year. However, the minister (Datuk Seri M Saravanan) announced that the deferment was only until December, for only four months.”

“We are taking into account SMEs that are not prepared, and we might request the ministry to further postpone it for another 12 months. It means that (the government should consider implementing the amended Employment Act) by January 2024,” he said at a recent press briefing of the FMM-Malaysian Institute of Economic Research Business Conditions Survey for 1H 2022. 

Soh said this in response to a question on whether the industry would request for another postponement to the amended law. 

READ: Malaysia postpones enforcement of shorter working hours

On August 26, Saravanan announced the deferment of the implementation of the amended Employment Act 1955 from 1 September 2022 to 1 January 2023.  He said the decision was made following discussions with industry players and stakeholders, including chambers of commerce. 

Among key amendments include the extension of maternity leave allocations from 60 days to 98 days, reduced weekly working hours from 48 hours to 45, and a seven-day paternity leave for married male employees, according to New Straits Times.