Introduction
Pursuant to the Employment (Amendment) Act 2022, significant amendments to the Employment Act 1955 (“EA 1955”) will come into force on 1 January 2023.
The amendments include the First Schedule of the EA 1955 in accordance with the Employment (Amendment of First Schedule) Order 1955 which was gazetted on 15 August 2022.
We set out below a summary of the amendments.
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Conclusion
The amendments to the EA 1955 are set to change the employment landscape in Peninsular Malaysia with effect from 1st September 2022. Not only will the Act apply to all employees irrespective of wages but the amendments will see the rights of employees better protected in terms of flexible working arrangements and leave entitlements.
The amendments will also provide better protection to combat sexual harassment at the workplace.
Further, tighter regulations would come into effect in so far as the hiring of foreign employees are concerned and errant employers could face stiffer penalties.
It is hoped that the amendments to the EA 1955 would ensure better employer-employee relationships, which in turn would lead to better productivity and economic gains.
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*Pursuant to Section 1(2) of EA 1955, the Act only applies to Peninsular Malaysia and Federal Territory of Labuan.
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This article is intended to be informative and not intended to be nor should be relied upon as a substitute for legal or any other professional advice.
About the Author
Rohan Arasoo Jeyabalah
Partner
Harold & Lam Partnership
rohan@hlplawyers.com
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Teoh Yen Yee
Senior Associate
Harold & Lam Partnership
yenyee@hlplawyers.com
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Syed Mohamed Ashiq
Associate
Harold & Lam Partnership
syed@hlplawyers.com
