Enforcement of amendments to the Employment Act 1955 has been postponed to 1 January 2023 from its earlier date of 1 September 2022, as confirmed by Human Resource Minister Datuk Seri M. Saravanan. The decision was made by the cabinet after taking into consideration the unanimous request made by industries and employers.
“After listening to everyone we (the government) have come to a conclusion that we should give another three months for the recovery of the economy. Otherwise, I am just worried that if the industries suffer, a lot of us will lose our jobs,” the minister told a news conference.
“Of course, this ministry is concerned about the interests of the employees. This (delay) is to safeguard their interest,” he added
Among the challenges faced by industry players include still having to deal with a shortage of foreign workers and financial effects from the Covid-19 pandemic.
“This is the final postponement. By hook or by crook, these amendments will be enforced on 1 Jan.”
In response, the Malaysian Employers Federation (MEF) is grateful for this decision. In a statement, MEF President Datuk Dr Syed Hussain Syed Husman said, “MEF is really thankful to the government especially to the Human Resources Minister YB Datuk Seri M Saravanan for the deferment of the implementation of the Amendments to the Employment Act 1955(EA 1955) to 1st January 2023.”
“Even though MEF earlier called for the implementation to be deferred for at least until the end of 2023, the deferment to 1st January 2023, will assist employers especially the MSMEs to be more focussed on recovering and re-establishing their businesses.”
It is very challenging for the employers to absorb the estimated additional cost of RM 110.99bil per year especially during uncertainties and volatile global market due to supply chain issues arising from Covid-19 and the geopolitical conflict in Ukraine.”
“The deferment will allow employers to fully understand the provisions of the amendment and draw up relevant company policies based on the requirements of the amended EA 1955. This will lead to better compliance of the amended EA 1955”
“The Labour Department Peninsular Malaysia will also be given ample time to come up with the required template for employees to apply to employers for flexible work arrangements. The enforcement agencies will also be more able to strengthen their strategies to get employers to fully comply with the EA 1055 especially on the amended provisions.”
