Workplace Safety in Malaysia

Workplaces in Malaysia are becoming more dynamic, fast-paced and people-focused than ever. In this evolving environment, issues such as harassment, bullying, and workplace safety can no longer be dismissed as merely internal matters. If left unaddressed, these issues will affect employee wellbeing, damage corporate reputation, and expose employers to legal and regulatory risks. Employers are increasingly expected to manage not only performance, but also conduct, culture, and workplace welfare.

The legal framework reflects this shift. The Employment Act 1955 (“EA 1955”) imposes duties on employers to address complaints of harassment under the supervision of the Director General of Labour. This is reinforced by the Anti-Sexual Harassment Act 2022 (“ASHA 2022”) and the Penal Code provisions relating to harassment, which strengthens the regulatory approach to workplace misconduct.

“Harassment” does not fall within a single, exhaustive definition under Malaysian law. EA 1955 defines “sexual harassment” as “any unwanted conduct of a sexual nature, whether verbal, non-verbal, visual, gestural or physical, directed at a person which is offensive or humiliating or is a threat to his well-being, arising out of and in the course of his employment.” However, harassment in the Malaysian legal context is not limited to sexual harassment alone. The Penal Code captures a wider range of behaviour, including conduct that causes distress, fear, or alarm, or leads a person to reasonably fear harm, even extending to situations involving the misuse of personal information.

Workplace safety, meanwhile, extends beyond physical conditions to the provision of a reasonably safe working environment, including protection from bullying and other harmful workplace behaviour.

Employers’ Duties and Consequences of Non-Compliance

1.Duty to inquire into sexual harassment complaints : Under Sections 81B to 81E of EA 1955, employers are required to inquire into complaints of sexual harassment or provide written reasons if no inquiry is conducted. Employers must also comply with any direction from the Director General to conduct an inquiry and submit the relevant report.

2. Duty to take action and promote awareness: Where misconduct is established, employers must take appropriate action against the person against whom the complaint is made. Employers are also required under Section 81H of EA 1955 to conspicuously exhibit a notice at the workplace to raise awareness on sexual harassment.

3. Consequences of non-compliance

• • Exposure to constructive dismissal claims: Failure to address harassment, bullying, or safety concerns and complaints may give rise to constructive dismissal claims against the employer under the Industrial Relations Act 1967.
• • Statutory and civil penalties: Under Section 81F of EA 1955, non-compliance with inquiry obligations may result in a fine not exceeding RM50,000. Breaches of an employer’s duties under Sections 15 to 18B of the Occupational Safety and Health Act 1994 (“OSHA 1994”), including the duty to ensure, so far as is practicable, the safety, health and welfare of employees at work may attract a fine of up to RM500,000, imprisonment of up to two years, or both.
• • Criminal exposure and reputational damage: An employer’s failure to address harassment may give rise to potential criminal liability, particularly following recent amendments relating to harassment-type conduct under Sections 507B to 507G of the Penal Code. Such failures may also result in significant reputational damage and adversely affect an organisation’s public standing.

Employer Compliance Measures

The following are steps employers should take moving forward: –

1. Treat complaints seriously : All complaints should be acknowledged, documented, and addressed promptly.

2. Conduct proper investigations : Employers must comply with their duties and obligations under the law, including ensuring timely and impartial investigations or issuing written reasons where no inquiry is undertaken.

3. Strengthen policies and awareness : Policies on workplace harassment, bullying, grievance handling, and safety should be regularly reviewed and updated. Regular training should be conducted and the notice requirement under Section 81H of EA 1955 must be complied with.

4. Maintain proper documentation : Records of complaints, investigations, disciplinary actions, and training sessions should be properly maintained to support compliance and defence in the event of disputes.

Conclusion

In Malaysia, employer liability may arise not only from acts of harassment or workplace safety failures themselves, but also from an employer’s failure to respond appropriately. EA 1955, OSHA 1994, and the Penal Code together create fundamental duties for employers, requiring procedural compliance and reasonable diligence.

Where these obligations are not met, employers face liability exposures across multiple fronts including statutory penalties, constructive dismissal claims, and criminal liability.

Disclaimer: This article is for general information only and does not constitute legal advice or legal opinion. It should not be relied upon as a substitute for specific legal advice. No person should act (or refrain from acting) based on this article without obtaining advice on the specific facts and circumstances. Halim Hong & Quek does not accept responsibility or liability for any loss or damage arising from reliance on this article. Halim Hong & Quek reserves the right to update, amend or withdraw this article at any time. All rights reserved.

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About the authors

Siva Kumar Kanagasabai
Senior Partner
Head of Dispute Resolution Practice Group
Halim Hong & Quek
kumar@hhq.com.my

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Omar Qayyum Bin Hamdan
Associate
Dispute Resolution
Halim Hong & Quek
omar@hhq.com.my