In a world where work-life balance is increasingly under scrutiny, understanding your rights as an employee in Malaysia has never been more crucial. This article delves into the key aspects of Malaysian employment law, inspired by a recent podcast discussing the tragic death of a U.S. bank associate allegedly linked to excessive working hours. This incident serves as a stark reminder of the importance of robust employment laws and their enforcement.

As the echoes of this story reverberate across continents, it prompts us to examine our own backyard. What protections do Malaysian workers have? How does our nation safeguard the rights and well-being of its workforce?

As we explore the labour laws in Malaysia, we’ll also touch on how these laws impact employers and businesses operating in the country.

A Tripartite Legal Landscape

Malaysia’s employment law framework is not uniform across the country. Depending on your work location, you’ll fall under one of three primary employment statutes:

1. Peninsular Malaysia: Employment Act 1955
2. Sabah: Labour Ordinance (Cap 67)
3. Sarawak: Labour Ordinance (Chapter 76)

For this article, we’ll focus on the Employment Act 1955, as recently amended by the Employment (Amendment) Act 2022, coming into force on 1 January 2023, which governs the majority of Malaysian workers.

Who’s Covered?

While the workforce comprises various types of employees — full-time, part-time, casual workers, and more — this article primarily addresses the rights and protections for full-time employees. These are the backbone of many organisations, dedicating their full working hours to a single employer.

Key Rights and Protections

1. Working Hours and Overtime

The standard workweek in Malaysia is capped at 45 hours. Any work beyond this is considered overtime. While specific overtime rates vary, it’s crucial to note that these overtime entitlements typically don’t apply to employees earning over RM4,000 per month.

2. Rest Days

Every employee is entitled to at least 1 rest day per week. If they are required to work on a rest day, they are entitled to additional compensation. Again, these additional pay entitlements do not apply to those earning above RM4,000.

3. Public Holidays

Malaysia observes several public holidays throughout the year and all full-time employees are legally entitled to paid public holidays.

The number of public holidays can vary by state, but generally includes the 11 gazetted public holidays (5 of which are: National Day; birthday of Yang di-Pertuan Agong; birthday of the Yang di-Pertua Negeri; Workers’ Day; and Malaysia Day) and special holidays appointed by the ministers in accordance with S.8 of Holidays Act 1951.

4. Annual Leave

The 1955 Act provides for a minimum of 8 days of annual leave for employees who have been in service for less than two years, increasing to 12 days for those with two to five years of service, and 16 days for those with more than five years of service.

5. Sick Leave

Under the amended employment law, sick leave provisions have been significantly enhanced to better support employees’ health needs.

Standard Sick Leave: The entitlement to paid sick leave varies based on the employees’ service duration;

• Less than 2 years: 14 days;
• 2 to 5 years: 18 days;
• More than 5 years: 22 days; and/or

Hospitalisation Leave: In addition to the standard sick leave above, employees are entitled to 60 days of paid hospitalisation leave per year.

The 2022 amendment separates the calculation of sick leave and hospitalisation leave.

For illustration, if the employee has worked for the employer for less than 2 years, such employee will be entitled to:

• 14 days of sick leave; and
• 60 days of hospitalisation leave.

The total potential leave for such employee in the illustration above is 74 days, instead of the pre-amendment limit of 60 days aggregate sick leave.

Note: Employees must still provide certified medical certificates to validate the sick leave claims.

6. Maternity and Paternity Leave

Following the amendment, maternity leave for female employees has been increased from 60 to 98 days.

The 2022 amendment also introduces 7 days of paternity leave for married male employees subject to conditions.

Interestingly, our neighboring country, Singapore, recently announced plans to extend shared parental leave. By April 2026, parents in Singapore will be entitled to a total of 30 weeks of parental leave. This progressive move might spark discussions about similar enhancements in Malaysia’s parental leave policies.

7. Flexible Working Arrangements

The 2022 amendment introduces provisions for employees to apply for flexible working arrangements, which employers must consider and respond to within 60 days. This reflects a growing recognition of the importance of work-life balance and the changing nature of work in the modern era.

8. Protection Against Sexual Harassment

Employers are required to display a conspicuous notice to raise awareness about sexual harassment in the workplace and attend to sexual harassment complaints in a prescribed manner.

The Road Ahead

As global conversations about work-life balance, mental health, and employee rights continue to evolve, it’s crucial for all stakeholders (both employers and employees) in Malaysia to stay informed about their rights and responsibilities. By fostering a culture of compliance and respect for worker rights, we can create a more equitable, safe and productive workforce for all.

While this article provides an overview of the essential provisions of employment law, employment law can be complex and situation-specific. Always consult with legal professionals or the relevant authorities for advice on your specific circumstances.

Illuminated towers, dark realities: The unseen toll of overwork and your rights under Malaysia’s Employment Laws in 2024.

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