The Employment Act 1955 is Malaysia’s core labour law, and it’s changed more in the past few years than in the previous two decades combined. If your HR policies still reflect pre-2022 rules, several of them are now out of date, and in some cases, non-compliant.
Coverage Was Expanded
The Employment (Amendment) Act 2022 extended Employment Act protections to all employees regardless of salary level, removing the previous RM2,000 wage threshold that excluded higher-paid employees from most protections. This means core protections, working hours, rest days, termination rules, now apply far more broadly than before.
Maternity Leave: Now 98 Days
Paid maternity leave increased from 60 to 98 consecutive days, effective 1 January 2023. See our full breakdown of maternity leave entitlement in Malaysia for details.
Paternity Leave: A New Entitlement
For the first time, eligible male employees are entitled to 7 days of paid paternity leave, also effective 1 January 2023. This didn’t exist under the Act before this amendment.
Working Hours Reduced
The maximum weekly working hours limit was reduced from 48 to 45 hours. Employers with schedules built around the old 48-hour cap need to review and adjust.
Flexible Working Arrangements
Employees now have the right to formally apply for flexible working arrangements, covering hours, days, or place of work. Employers must respond to such requests within a set timeframe under the Act. Confirm the current response deadline directly against the Act’s provisions, as procedural requirements like this are worth verifying rather than assuming.
Sexual Harassment Provisions Strengthened
Employers are now required to display an anti-sexual harassment notice conspicuously in the workplace, and additional reporting obligations apply. This is one of the more overlooked changes, worth checking your workplace has this in place.
What This Means for Employers
If your employee handbook, contracts, or leave policies haven’t been reviewed since 2022, they’re likely referencing outdated entitlements. This isn’t just a documentation issue, it can mean employees are receiving less than they’re legally entitled to, which creates real exposure to labour complaints.
Frequently Asked Questions
When did the Employment Act’s major 2022 changes take effect?
Most provisions of the Employment (Amendment) Act 2022 took effect on 1 January 2023.
Does the Employment Act now cover all employees regardless of salary?
Yes, the previous salary threshold that excluded higher earners from most protections was removed.
What is the current maximum weekly working hours limit?
45 hours, reduced from the previous 48-hour limit.
Related Reading
Keeping Policies Aligned With the Current Act
Employment law changes like these are easy to miss if HR isn’t actively tracking gazette updates. If you’d like your employment contracts and HR policies reviewed against the current Employment Act, talk to Righthouse’s HR outsourcing team.
