Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Amendment to Employment Act 2021, Effective January 1, 2023

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner, and Teng Wei Hun, Associate – Skrine

The Employment (Amendment) Act 2021, which was passed on March 30, 2022, was previously slated to come into effect on September 1, 2022. However, this has been delayed to January 1, 2023, to allow businesses time to implement the necessary changes.

By way of a Ministerial Order, it has been announced that all provisions of the Employment Act 1955, including the amendments passed by the Employment (Amendment) Act 2021 will apply to all employees regardless of their wages. However, entitlement to overtime pay, holiday pay, allowance for shift work and termination, lay-off and retirement benefits is limited to only employees (i) who earn monthly wages of RM4,000 or below; or (ii) regardless of wages, employees who are engaged in or supervise manual labor or in the operation of maintenance of any mechanically propelled vehicle operated for the transport of passengers or goods or for commercial purposes.

Both SOCSO Amendment and EIS Amendment Came into Force on September 1, 2022

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner, and Teng Wei Hun, Associate – Skrine

Both the Employees’ Social Security (Amendment) Bill 2022 (SOCSO Amendment) and Employment Insurance System (Amendment) Act 2022 (EIS Amendment) came into force on September 1, 2022. The SOCSO Amendment, in part, increases the maximum limit of the insurable amount of monthly wages of an employee from RM4,000 to RM5,000 per month. Similarly, the EIS Amendment increases the maximum limit of the insurable amount of wages of an employee from RM4,000 to RM5,000 per month.

Further Relaxation of COVID-19 Standard Operating Procedures

New Regulation or Official Guidance

Authors: Selvamalar Alagaratnam, Partner, and Teng Wei Hun, Associate – Skrine

The Minister of Health announced that mask-wearing is no longer mandatory in Malaysia including while boarding a plane, ending the last of its significant COVID-19 restrictions.