Malaysia expands employer duty of care to mental health under 2026 flexible work safety guide

As flexible work arrangements (FWAs) become more entrenched across Malaysia’s labour market, employers are now required to go beyond physical safety considerations and assess employees’ mental health and psychosocial risks.

Human Resources Minister R. Ramanan announced that the expanded responsibility is outlined in the Occupational Safety and Health Guide for Flexible Work Arrangement 2026, developed by the Occupational Safety and Health Department (DOSH). The guide comes as more organisations adopt remote work, hybrid models and staggered hours.

“The guide emphasises the responsibility of employers to ensure the safety, health and welfare of employees even when work is carried out flexibly, including from home,” Ramanan said during his winding-up speech on the motion of thanks for the royal address at the Dewan Rakyat.

Under the 2026 guide, employers implementing FWAs must conduct mandatory occupational safety and health (OSH) risk assessments. These assessments now extend beyond ergonomic risks—such as workstation set-ups at home—to include psychosocial risks, including work-related stress, mental fatigue and other mental health concerns.

The move marks a significant shift in how workplace obligations are interpreted in an increasingly decentralised work environment. Traditionally, OSH compliance focused on physical workspaces within employer-controlled premises. The new framework makes clear that employer accountability does not end when work moves beyond the office.

FWAs were formally strengthened through amendments to the Employment Act 1995, which came into force in January 2023. The changes were intended to promote work-life balance and provide employees with greater flexibility in how and where they perform their duties.

However, Ramanan cautioned that flexibility must not come at the expense of employee wellbeing.

“Flexible work, including working from home or staggered hours, is subject to sectoral suitability, the nature of work and mutual agreement between employers and employees,” he said, adding that clear guidelines are necessary to prevent abuse and protect employees’ mental health.

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The government has also stepped up education and awareness efforts to support employers and employees in adapting to the new expectations. According to Ramanan, the Labour Department conducted 222 labour education programmes nationwide up to December 2025, including briefings on FWAs and related compliance requirements.

Beyond regulation, capability-building initiatives are also underway. TalentCorp’s FWA@Workplace initiative has provided organisations with toolkits, workshops and consultations to implement flexible work models more systemically. The programme benefited nearly 474,400 employees in 2025 alone, underscoring the scale of flexibility’s embeddedness across sectors.

“The introduction of specific mental health and psychosocial risk assessments under the 2026 guide reflects the government’s commitment to ensuring that productivity gains from flexible work do not compromise employees’ long-term health,” he said, reported New Straits Times.