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2023 Employment Act Amendments: Essential Information for HR Managers

The Amendments Employment Act 1955 is set to undergo some significant changes in 2023. This Act, which was first introduced in 1955, serves as the primary piece of legislation governing employment relationships in Malaysia. It sets out the rights and obligations of both employers and employees, and is intended to promote fair and just treatment in the workplace.

4 HR Priorities To Focus for 2023
4 HR Priorities To Focus for 2023

Paternity Leave

One of the key amendments to the Act in 2023 is the introduction of new provisions relating to parental leave. Currently, the Act only provides for maternity leave, with no provisions for paternity or adoption leave. The amendments will rectify this imbalance and provide for equal parental leave entitlements for both mothers and fathers. This is a significant step forward for gender equality in the workplace and will help to support working parents as they balance their responsibilities at home and at work.

Flexible Working Arrangement

Another important amendment is the introduction of a new provision for flexible working arrangements. This will allow employees to request flexible working hours or arrangements, such as working from home or job sharing, in order to better balance their work and personal commitments. This is a welcome development, as it recognises the changing nature of work in the 21st century and the need for greater flexibility to accommodate the needs of modern families.

EasyWork has prepared a series of guides which include the tools that are currently being offered and how it can be used to create the best remote working environment.

Minimum Wage

The amendments to the Act also include provisions relating to the minimum wage and the payment of salaries. The minimum wage will be adjusted on an annual basis, taking into account the cost of living and other relevant factors. The Act will also provide for the payment of salaries through electronic means, such as bank transfers, in order to make the process more efficient and convenient for both employers and employees.

Automate your employees’ payroll with EasyWork’s Payroll feature, available in Malaysia and approved by LHDN. This feature saves time and reduces the risk of human error in manual timesheet calculations, making payroll hassle-free.

Conclusion

Overall, the Amendments Employment Act 1955 in 2023 represents a major step forward for workers’ rights in Malaysia. It recognises the changing nature of work and the need for greater flexibility, and it addresses longstanding issues such as gender inequality and the payment of salaries. These changes will help to create a more fair and just society, and will promote greater equality and prosperity for all Malaysians.

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