The objective is to resolve disputes in a simple, affordable, and timely manner.
Termination of employment (retrenchment) refers to the ending of a contract of service due to company closure or surplus of labour. A surplus of labour may arise from various circumstances such as company restructuring, reduction in production, mergers, technological changes, company takeovers, and other similar reasons. This does not include terminations resulting from disciplinary action or dismissal due to employee misconduct.
When a situation of surplus labour arises, the employer must first take appropriate measures to avoid retrenchment of employees as recommended under the Code of Conduct for Industrial Harmony, including the following:
2.1. Imposing a freeze on new recruitment, except for critical positions;
2.2. Limiting overtime work;
2.3. Restricting work on weekly rest days and public holidays;
2.4. Reducing the number of working days per week or the number of shift rotations;
2.5. Shortening daily working hours;
2.6. Implementing retraining programmes for employees;
2.7. Identifying alternative jobs and redeployment to other departments or roles within the same company;
2.8. Implementing temporary lay-offs, for example in the form of a temporary shutdown, with reasonable remuneration and assisting affected employees to obtain temporary employment elsewhere until operations resume.
If a temporary lay-off is implemented, the duration must be reported to the Sarawak Department of Labour for monitoring purposes, to determine whether the employees will be re-employed, offered Voluntary Separation Scheme (VSS), or permanently retrenched in the future; and
2.9. Implementing a salary reduction (pay-cut) fairly across all levels, which may be considered as a last resort after all other cost-saving measures have been exhausted.
⚠️ Note: Measures stated in items 2.7, 2.8, and 2.9 must be implemented with the written consent of the affected employees or their respective trade union representatives.
If retrenchment is still necessary despite the measures outlined in paragraph 2, the employer must take the following steps to minimise the adverse effects on the affected employees:
3.1 Notify and consult with the employees or their trade union representatives as early as possible regarding the planned retrenchment;
3.2 Offer a voluntary separation or retirement scheme with the best possible compensation package;
3.3 Pay termination benefits or compensation to eligible employees;
3.4 Retire employees who have reached or exceeded the normal retirement age;
3.5 Provide notice of termination of service in accordance with the contract of service. If the contract does not stipulate the notice period, the employer shall provide notice in accordance with the Sarawak Labour Ordinance (Chapter 76) as follows:
(a) 4 weeks’ notice for employees who have worked for less than 2 years;
(b) 6 weeks’ notice for employees who have worked for 2 years but less than 5 years;
(c) 8 weeks’ notice for employees who have worked for 5 years or more;
3.6 Assist employees in seeking alternative employment with the cooperation of the Sarawak Department of Labour, under the Ministry of Human Resources;
3.7 Implement retrenchment in phases over an extended period;
3.8 Apply the FWFO principle (Foreign Worker – First Out) for the same job category, i.e. foreign workers shall be retrenched before local workers; and
3.9 Apply the LIFO principle (Last In – First Out) where retrenchment involves local employees in the same job category. However, the employer may also carry out retrenchment based on other agreed objective criteria, provided such criteria are discussed and agreed upon with the employees or their trade union representatives.
4.1. Employers are required to report to the nearest Sarawak Department of Labour office at least 30 days before implementing any of the following actions by using the Retrenchment Notification Form (JTKSWK19), according to the type of retrenchment to be carried out:
4.1.1. Retrenchment of employees;
4.1.2. Voluntary separation of employees;
4.1.3. Temporary lay-off of employees; or
4.1.4. Reduction of employee wages (Pay-Cut).
4.2. The Retrenchment Notification Form may be obtained free of charge from any Sarawak Labour Office, or downloaded from the JTKSWK19 Forms section.
4.3. This form has been gazetted as P.U.(B)205 dated 26 June 2009. Any employer who fails to comply with this requirement commits an offence under Section 2(2) of the Notification of Retrenchment 2009, and upon conviction, may be fined up to RM50,000 for each offence.
Employees who are dismissed are entitled to the minimum termination benefits if they are protected under the Labour Ordinance (Sarawak Chapter 76) or a Collective Agreement.
5.1 Labor Ordinance (Sarawak Chapter 76)
Generally, employees who are protected under the Labor Ordinance (Sarawak Chapter 76) and involved in layoffs are eligible to claim the following statutory benefits:
5.1.1 Wages in lieu of notice
Employees who are dismissed without being given a sufficient notice period of termination of service, can claim payment of notice compensation wages (Indemnity). Notice severance pay must be paid no later than the last day the service contract is terminated.
5.1.2 Termination benefits
The payment of severance benefits shall be in accordance with the service contract, but shall not be less than the rate set under the Labor (Sarawak) (Termination and Temporary Termination Benefits) Rules 2008 which are:-
a) 10 days’ salary for each year of service if the employee has served less than 2 years;
b) 15 days salary for each year of service if the employee has served for 2 years but less than 5 years; or
c) 20 days’ salary for each year of service if the employee has served 5 years or more and is calculated pro-rata over the odd period of a year, according to the nearest even month.
The formula prescribed under the Employment (Termination and Temporary Employment Benefits) Regulations 1980, namely:
Gaji 12 bulan | x | Tempoh Perkhidmatan | x | (Bilangan tempoh berkhidmat) |
Kelayakan 365 hari | (10/15/20 hari setahun) |
5.1.3 Employees are entitled to written details of the amount of the total termination benefits and how the calculation is made. Termination benefits must be paid no later than 7 days from the date the employee is terminated.
5.1.4 Payment in lieu of remaining annual leave, if any.
5.1.5 Salary Balance.
5.1.6 Employees involved in layoffs can refer to the nearest Labor Department for more information.
5.2 Industrial Relations Act 1967
5.2.1 If the employee involved in the layoff is a member of a trade union and signed a Collective Agreement, the employee is entitled to those things;
i) Compensation as specified in the Collective Agreement; or
ii) Restoration of Work under section 20 of the Industrial Relations Act 1967, if the employee is not satisfied with the dismissal action taken by his employer
5.2.2 For workers who are not protected under the Labor Ordinance (Sarawak Chapter 76) or Agreement.
Together, they are subject to the terms and conditions under the service contract or the employer’s discretion regarding the amount of compensation to be received.
5.2.3 Employees can seek further advice from the Industrial Relations Department that is close to the workplace.
The steps to be taken by the dismissed employee are:
i. Report the proposal or Termination action that will be or has been taken by their employer to the nearest Manpower Office.
i. Register either at the nearest SOCSO office or online at the MyFutureJobs portal.
iii. Ensure that severance pay or benefits have been received (if eligible).
The Labour Ordinance (Sarawak Chapter 76) protects workers under the following categories:-
Any person who enters into a contract of service.
Employees earning up to and exceeding RM4,000 per month.
Manual employees (with no wage limit) or employees as defined under the First Schedule (subsection 2 of section 2) of the Sarawak Labour Ordinance (Chapter 76).
Not later than the seventh (7) days after the end of the wage period
No later than the day the contract is terminated or the following day that is not a public holiday.
Wages are paid to employees who attend court cases with justification given by the court that the employee’s presence is of interest to help uphold public justice.
Wages can be deducted to the extent of overpayments made within three (3) months prior to the employer’s mistake.
Cannot be done unless written permission is obtained from the Director of the Department of Labor (JTK)
Wages shall be paid through a financial institution, and if wages are to be paid by cheque, a written request from the employee must first be obtained.
Monthly Wage Rate / 26 |
Weekly Wage Rate / 6 |
For an estimated, click on the calculator
Employers need to report to the nearest Department of Labour (JTK) by filling out Form JTKSWK19 at least 30 days before terminating an employee.
Voluntary Separation is a scheme where employees are allowed to terminate their employment contracts voluntarily with compensation offered by the employer.
Employers need to prepare a list containing specific information such as personal details, terms and conditions, as well as salary and allowances received for each pay period.
Employers need to prepare a service contract and provide a copy to the employee when the contract exceeds 1 month and has a specific duration.
The terms of service can be altered with the consent of both the employer and the employee, provided that it does not violate any provisions under the Labour Ordinance (Sarawak Chapter 76) and other laws.
Any terms of service that are less beneficial to the employee are void and unenforceable if they do not comply with the terms or conditions set out in the Labour Ordinance (Sarawak Chapter 76).
An employer can terminate the service under the following circumstances:
The employer can demote the employee or impose reasonable disciplinary actions, including a suspension without pay not exceeding a period of two (2) weeks’ salary, upon conducting an internal investigation.
Working between the hours of ten o’clock at night and five o’clock in the morning is not allowed, except with the permission of the Director of Labour Sarawak.
Sector of industry, forestry, and agriculture.
60 days in a continuous manner.
Eligibility to receive maternity pay / allowance is up to a maximum of five living children.
The amount of maternity allowance that a female employee is entitled to receive from the employer is based on the regular salary rate.
Maternity leave can be taken thirty (30) days earlier before childbirth or on the day immediately following childbirth. However, the employee may be required to commence maternity leave at any time within a period of fourteen (14) days before childbirth if certified by a medical officer or registered medical practitioner appointed by the employer that the employee is unable to perform her duties due to her pregnancy condition.
To qualify for maternity leave and allowance, the employee must meet the following conditions:
The limit for overtime work cannot exceed 104 hours in a month.
The allowed working hours per day are:
Employers are required to make payment for work on a weekly rest day as follows:
Monthly wage: If working less than half of the usual working hours, payment equivalent to half a day’s salary at the regular rate. If working more than half but not exceeding the usual working hours, payment equivalent to one day’s salary at the regular rate.
Daily / hourly wage: If working less than half of the usual working hours, payment equivalent to one day’s salary at the regular rate. If working more than half but not exceeding the usual working hours, payment equivalent to two days’ salary at the regular rate.
Monthly wage | : | Wage ÷ 26 x 1.5 x Total Overtime Hours |
Daily wage | : | Wage ÷ 8 x 1.5 x Total Overtime Hours |
Monthly wage | : | wage ÷ 26 x 2.0 x Total Overtime Hours |
Daily wage | : | Wage ÷ 8 x 2.0 x Total Overtime Hours |
Monthly wage | : | Wage ÷ 26 x 3.0 x Total Overtime Hours |
Daily wage | : | Wage ÷ 8 x 3.0 x Total Overtime Hours |
Employees are entitled to at least one day of weekly rest leave in one week, but if there are more than one day of rest, then the last day is considered the weekly rest day.
At least 18 days of public holidays are mandated in a year, including:
For employees with monthly, weekly, daily, and hourly wages, the wage rate paid is 2 days’ pay at the regular rate. For employees paid based on piece rate, the wage rate is paid at twice the regular rate for one rate.
Employees must work for a continuous period of 12 months with the same employer. However, if an employee is absent from work without the employer’s permission and without reasonable cause for more than 10% of the working days in 12 months, the employee has forfeited the right to annual leave.
A medical certificate issued by a dental doctor can be accepted as sick leave.
Employees must inform the employer within 48 hours from the start of the sick leave.
Employees are not eligible for paid sick leave during the period when they are entitled to maternity allowance.
Employees are not eligible for paid sick leave during the period when they are entitled to disability compensation under the Workmen’s Compensation Act 1952 or temporary disability benefits under the Employees’ Social Security Act 1969.
Annual leave is considered unused.
The employment contract is terminated by the employer under a continuous contract of not less than 12 months.
Termination benefits must be paid when the employer terminates the employment contract for any reason except:
The total payment for termination benefits cannot be less than the following:
For an estimated, click on the calculator
Termination benefits must be paid no later than seven (7) days after the termination date.
The employer is required to provide a statement containing details related to the calculation of termination benefits.
It occurs when the employer is unable to provide the employee with work in which wages are paid based on the work specified in the employment contract for a minimum of 12 days during any consecutive four-week period.
The total payment for temporary cessation cannot be less than the following:
Employers who pay wages late are committing an offense under Section 130J(c) of Chapter XIVA and may be subject to a fine not exceeding ten thousand ringgit.
Employers who make deductions from wages contrary to Section 114 are committing an offense under Section 130J(e) and may be subject to a fine not exceeding ten thousand ringgit.
Employers who fail to pay sick leave wages are committing an offense under Section 130K(5), and upon conviction, the court may order the employer to pay the amount of sick leave wages as if it were a penalty imposed under the same section.
An employer who fails to comply with an order or decision of the Labour Court commits an offence under Section 130C(a) and, upon conviction, may be fined not more than RM50,000.00. If the offence continues, the employer may be further fined not more than RM1,000.00 for each day the offence continues.
For employers who fail to comply with an order or directive of the Labour Court related to discrimination in employment, it constitutes an offence under Section 19A and, upon conviction, the same penalties as above apply.
The Labour Court refers to inquiry proceedings in which the Director or an authorised officer may hear and decide on complaints related to wages and other payments under a contract of service, statutory payments provided under the Labour Ordinance (Sarawak Chapter 76), and the National Wages Consultative Council Act 2011. In addition, the Labour Court may also hear and decide on any complaints related to discrimination in employment as provided under Section 19A.
The objective is to resolve disputes in a simple, affordable, and timely manner.
In general, the target set for case resolution is not more than three (3) months, depending on the complexity of the legal issues involved.
Employees who fall under the definition of “employee” in the First Schedule of the Labour Ordinance (Sarawak Chapter 76) may file a complaint with the Labour Court.
The Labour Court does not have a limit on the claim amount.
Filing a complaint is free of charge. Any costs involved, such as transportation and others, are borne by the respective parties.
Representation is not provided for under the Labour Ordinance (Sarawak Chapter 76). However, the officer handling the case may exercise discretionary power to allow any party in the case to be represented. Any party in the case wishing to be represented must submit a power of attorney form before the case begins.
If the order issued is not complied with by the party concerned, the order may be endorsed and enforced in the relevant Sessions Court or Magistrates’ Court as if it were an order made by that court. Additionally, failure to comply with the order is also an offence under Section 19A or Section 130C(a), whichever is applicable.
An appeal against a decision or order may be made to the High Court within fourteen (14) days from the date the decision or order is issued.
The appeal process is initiated by filing a notice of appeal and a deposit of RM1,000.00 in the form of a money order or bank draft. All the mentioned documents must be submitted to the Labour Office where the order or decision was made within fourteen (14) days from the date the decision or order was issued.
Complaints can be made by personally visiting the Department of Labour Sarawak Headquarters at Level 13, Bangunan Sultan Iskandar, Jalan Simpang Tiga, 93000 Kuching.
or the nearest Labour Department office.
Based on the Department’s customer charter, complaints should be investigated and communicated within 30 days from the date of the complaint. However, there may be cases that cannot be resolved within that timeframe due to various factors, such as complex issues involving legal and technical matters.
Yes, it is an offence for any person to employ a non-resident employee without first obtaining an employment permit (Section 119 of the Labour Ordinance (Sarawak Chapter 76)).
Failure by any party to obtain a permit from the Director to employ a non-resident employee constitutes an offence under Section 130L of the Labour Ordinance (Sarawak Chapter 76), and upon conviction, is liable to a fine not exceeding RM50,000, or imprisonment for a term not exceeding one year, or both.
Yes, any party that commits forgery, alteration, or any form of tampering with a Non-Resident Employee Work Permit that has been issued is committing an offense and can be punished with a fine not exceeding RM50,000 or imprisonment for a period of 6 months, or both.
A ‘Non-Resident Employee‘ refers to any individual working in Sarawak who does not have permanent resident status in Sarawak as defined by Section 71 of the Immigration Act 1959 / 1963. There are three types of non-resident employees in Sarawak: non-Malaysian citizens, employees originating from Sabah, and employees originating from Peninsular Malaysia.
An employer intending to employ a non-resident employee is required to apply for an employment permit from the Sarawak Department of Labour. Applications will only be accepted and processed for approval if submitted by employers who intend to employ a “worker” as defined under Section 2 of the Labour Ordinance (Sarawak Chapter 76).
Regardless of the Type of Work
“Any person, regardless of the nature of employment, who is bound by a contract of service.”
Here is a list of sectors allowed to apply for a Policy Approval Letter (AP) and subsequently issue permits to hire non-resident employees in Sarawak:
Firstly, the employer needs to apply for a Policy Approval Letter (AP) and subsequently can apply for a New License Under AP through the Monitoring System of Employment of Non-Sarawakian (MSEN).
Please refer to the following link: Application to Employ Non-Resident Employee for Standard Operating Procedures, guidelines, documents, and application checklists.
Firstly, employers need to contact the nearest PERKESO office in Sarawak for the draft advertisement review, register in MyFutureJobs, set interview dates for candidates interested in applying for vacant positions, or conduct open interviews.
Some of the things that employers need to pay attention to are as follows:
The validity period of a permit is typically allowed for two (2) years, except for the Construction and Reflexology sectors, which are permitted for only one (1) year. A non-resident employee is allowed to work in Sarawak for a maximum duration of up to six (6) years, except for the Oil Palm Plantation sector, which is allowed for a maximum duration of up to ten (10) years.
The maximum age limit for the position of General Worker is 45 years for new license applications under AP.
Yes, it is an obligation for employers to provide accommodation facilities for non-resident employees hired at their workplace.
Yes, employers need to submit the ‘Memo Periksa Keluar‘ document as proof of sending the respective employee back to their home country to enable the issuance of an AP for recruiting new employees.
Yes, employers who hire non-resident employees are required to submit Form 119A to the nearest Labour Office within fourteen (14) days of employing a non-resident employee through the MSEN system in the ‘Update Workers‘ module.
Yes, such failure constitutes an offense under Section 130L of the Sarawak Labour Ordinance (Chapter 76) and can be punishable with a fine not exceeding RM10,000 or imprisonment for 6 months, or both, if found guilty.
Employers are required to complete Form 119A and submit it to the nearest Labour Office or update it in the MSEN system in the ‘Update Workers‘ module as long as they are employing non-resident employees.
The definition of minimum wage under Section 2 of the National Wages Consultative Council Act 2011 [Act 732] is the basic salary only, excluding any allowances or other payments.
On 1 February 2025:
a) Employers who hire five or more workers; and
b) Employers who engage in a professional activity regardless of the number of workers employed, classified under the Malaysian Standard Classification of Occupations (MASCO) as officially published by the Ministry of Human Resources.
c) On 1 August 2025:
Applicable to all workers currently employed by the employer.
The Minimum Wage Rate | |||||
Montly | Daily | Per hour | Pay based on work, weight, task, travel, or commission | ||
RM1,700.00 | Number of working days per week | RM8.72 | Not less than RM1,700.00 | ||
6 | 5 | 4 | |||
RM65.38 | RM78.46 | RM98.08 |
The minimum wage applies to all employees, including non-citizen workers in the private sector, except for domestic workers and apprenticeship contract workers.
The government has determined that the Minimum Wage Order covers all workers, including foreign/non-citizen workers, based on the following reasons:
i. The minimum wage policy should not discriminate against any worker on the grounds of nationality, in line with ILO Convention No. 100: Equal Remuneration, which Malaysia ratified in 1997;
ii. It would contravene Section 69F of the Employment Act 1955 [Act 265], Section 118B of the Sabah Labour Ordinance [Chapter 67], or Section 119B of the Sarawak Labour Ordinance [Chapter 76], which prohibit any form of discrimination between local and foreign workers;
The legal implications when the PGM 2024 is gazetted are:
i). The PGM 2022 is revoked. However, any legal proceedings, prosecutions, or investigations initiated under the PGM 2022 will continue until completion; and
ii) All service contracts and collective agreements must take into account all provisions under the PGM 2024.
No, this is contrary to the law.
Employers found guilty of not paying the minimum wage to employees can be subject to penalties as follows:
Offense | Penalty |
First Offense | A fine not exceeding RM10,000 per employee. The court may order the employer to pay the difference between the minimum wage rate and the basic salary to each employee. |
General Penalty | A fine not exceeding RM10,000 for each offense if no specific penalty is provided. |
Penalty for Continuous Offense | A daily fine not exceeding RM1,000 for continuous offenses after conviction. |
Penalty for Repeated Offense | A fine not exceeding RM20,000 or imprisonment not exceeding 5 years. |
No. The implementation of the Minimum Wage Order does not conflict with the practice of employers implementing the Productivity-Linked Wage System (PLWS), provided that employees do not receive a rate lower than the minimum wage rate.
A. Issues on policy
Secretariat, National Wage Consultative Council
Kementerian Sumber Manusia
Aras 7, Blok D3, Kompleks D
Pusat Pentadbiran Kerajaan Persekutuan
62530 PUTRAJAYA
Tel: 03-8886 5156
Faks: 03-8881 0668
E-mel: minimumwages[at]mohr[dot]gov[dot]my
Laman sesawang: www.mohr.gov.my
B. Implementation/Enforcement Issues
Jabatan Tenaga Kerja Semenanjung Malaysia
Kementerian Sumber Manusia
Aras 5, Blok D3, Kompleks D,
Pusat Pentadbiran Kerajaan Persekutuan
62530 PUTRAJAYA
Tel : 03-88865192
Faks: 03-8889 2368
Emel : jtksm[at]mohr[dot]gov[dot]my
Laman sesawang: jtksm.mohr.gov.my
Jabatan Tenaga Kerja Sabah
Kementerian Sumber Manusia
Tingkat 1, Blok C & D,
Bangunan KWSP P/S 14557
88852, Kota Kinabalu, SABAH
Tel : 088-238755/233820
Faks : 088-242445
Emel : jtknsabah[at]mohr[dot]gov[dot]my
Laman sesawang: jtksbh.mohr.gov.my
Jabatan Tenaga Kerja Sarawak
Kementerian Sumber Manusia
Tingkat 13, Bangunan Sultan Iskandar,
Jalan Simpang Tiga,
93532, Kuching, SARAWAK
Tel : 082-242261/414062
Faks : 082-244909
Emel : jtknsarawak[at]mohr[dot]gov[dot]my
Laman sesawang: jtkswk.gov.my
Jabatan Perhubungan Perusahaan Malaysia
Kementerian Sumber Manusia
Aras 9, Blok D4, Kompleks D,
Pusat Pentadbiran Kerajaan Persekutuan
62530 PUTRAJAYA
Tel : 03-88865460
Faks : 03-88862355
Emel : jppm[at]mohr[dot]gov[dot]my
Laman sesawang: jpp.mohr.gov.my
1. What are the key highlights of the amendments to the Sarawak Labour Ordinance (Chapter 76)?
The key highlights of the amendments to the Sarawak Labour Ordinance (Chapter 76) are as follows:
i. Extension of the Ordinance’s coverage to all employees regardless of wage limits;
ii. Increase in maternity leave from 60 days to 98 days;
iii. Introduction of 7 days’ paternity leave;
iv. Reduction of weekly working hours to 45 hours;
v. Separation of hospitalisation sick leave;
vi. Provision for flexible working arrangements;
vii. Entitlement to public holidays;
viii. Prohibition of discrimination in employment;
ix. Prohibition of forced labour;
x. Repatriation of employees;
xi. Prohibition of termination of pregnant female employees;
xii. Mandatory payment of wages through financial institutions;
xiii. Investigation of sexual harassment complaints and requirement to display a notice on sexual harassment prevention;
xiv. Obligation for contractors for labour to provide written contracts and submit notifications;
xv. Establishment of salary calculation formula for incomplete months of work;
xvi. Increase in the general penalty to RM50,000.00;
xvii. Minimum standards for employee housing, accommodation, and amenities;
xviii. Regulation on the employment of children and young persons;
xix. Repeal of restrictions on the employment of women;
xx. Definition of apprenticeship;
xxi. Definition of part-time employee; and
xxii. Other minor consequential amendments.
2. When will the amendments to the Sarawak Labour Ordinance (Chapter 76) come into force?
The amendments shall come into effect on 1 May 2025.
3. Do the amendments mean that all private sector employees, regardless of wage levels, are now protected and entitled to benefits under the Ordinance?
Yes. Pursuant to the First Schedule, which shall be implemented concurrently with the effective date of the Ordinance’s amendments, all private sector employees, irrespective of wage level, shall be entitled to the benefits and protections under this Ordinance.
4. Does this mean that highly paid employees are also entitled to overtime pay?
Under the First Schedule, employees earning more than RM4,000.00 per month are excluded from entitlement to overtime pay, rest day pay, public holiday pay, and termination benefits.
5. May a non-manual employee earning more than RM4,000.00 per month file a claim against the employer under Section 8A for overtime wages due under the terms of the contract of service?
Yes. Section 8A(1)(a) confers the Director with authority to investigate and determine disputes between an employee and the employer in relation to wages or any other cash payments due to the employee under any term of the contract of service.
1. What amendments are introduced concerning apprenticeship?
The amendments to the Ordinance introduce a formal definition of apprentice as any person who enters into a contract of apprenticeship. The definition of contract of apprenticeship has been revised from a minimum period of not less than two (2) years to a minimum of six (6) months and a maximum of twenty-four (24) months.
2. What is the difference between a trainee and an apprentice?
A trainee is an individual who attends a place of employment for the purpose of undergoing training as part of a course or educational programme. The company that accepts the trainee is under no obligation to offer employment after the training period ends.
In contrast, an apprentice is an individual employed under a contract of apprenticeship as defined under Section 2 of the Ordinance. Through the contract of apprenticeship, the employer undertakes to employ and systematically train the apprentice in a specific trade for a minimum period of six (6) months and up to a maximum of twenty-four (24) months.
1. What is the new definition of a part-time employee under the amended Ordinance?
A part-time employee is defined as a person listed in the First Schedule whose average weekly working hours, as agreed between the employee and the employer, do not exceed seventy per cent (70%) of the normal weekly working hours of a full-time employee engaged in similar duties within the same undertaking.
2. How is the average working time for a part-time employee calculated in comparison to a full-time employee?
The working hours for a part-time employee are determined based on an average that does not exceed seventy per cent (70%) of the standard weekly working hours of a comparable full-time employee. The full-time employee must be employed by the same employer and in a similar occupational capacity.
1. What is the effect of the amendments relating to sexual harassment in the workplace?
Following the amendment, Part IIIA provides that a complaint may be lodged with the Department concerning acts of sexual harassment occurring between:
(a). An employee and another employee;
(b). An employee and an employer; or
(c). An employer and an employee.
Provisions related to the investigation of sexual harassment complaints are also set out under this Part.
2. If the Director determines under Section 9D that sexual harassment has occurred, may the employee terminate the contract of service without notice and claim compensation in lieu of notice and termination benefits from the employer?
Yes. Section 9E provides that an employee who terminates his or her contract of service without notice shall be entitled to wages in lieu of notice, termination benefits, and any prescribed indemnity.
3. What are the employer’s additional obligations in addressing sexual harassment at the workplace under the amended Ordinance?
The amended Ordinance imposes an obligation on employers to display a notice intended to raise awareness on sexual harassment in the workplace. The notice must be displayed in a location that is clearly visible to employees and must be posted as soon as the amendments to the Ordinance come into effect.
4. By when must employers comply with the requirement to display the sexual harassment notice?
The sexual harassment notice must be displayed starting from 1 May 2025.
5. What content may be included in the notice?
The employer may include any statement that raises awareness about sexual harassment, such as: “Addressing Sexual Harassment in the Workplace”; “Sexual Harassment Awareness”; “Sexual Harassment is a Crime, Not a Joke”; “Say No to Sexual Harassment”. The notice may also include information or explanations related to the nature of sexual harassment.
1. Why was a new provision on discrimination introduced through the amendment of the Ordinance?
The new provision on discrimination introduced through the amendment aligns with the International Labour Organization’s Discrimination (Employment and Occupation) Convention, 1958 (No. 111).
The amendment empowers the Director to investigate and adjudicate any dispute between an employee and an employer concerning discrimination in employment.
2. What types of discrimination can be reported to the Sarawak Department of Labour?
Any form of discrimination by an employer against an employee in employment may be reported.
Examples include discrimination in terms and conditions of employment based on race, religion, gender, or political belief.
3. Provide examples of discrimination in employment that do not involve salary or wages.
Examples include the setting of working hours, workdays, place of work, rest periods, holiday entitlements, leave entitlements, accommodation facilities, and similar employment conditions.
4. After the enforcement of this amendment, can an employee lodge a complaint concerning acts of discrimination that occurred before the amendment came into effect?
No. Employees may only raise issues of discrimination that occur after the effective date of the amendment.
However, if the act of discrimination commenced before and continued after the effective date, any monetary claims must exclude the period prior to the amendment’s enforcement.
5. If an employer is dissatisfied with a decision made by the Director regarding discrimination under Section 19A, can the employer appeal to the High Court?
Yes. Section 8M provides that any person whose financial interests are affected and who is dissatisfied with the Director’s decision under Sections 8A, 8I, 9D, or 19A may appeal to the High Court.
6. Following the repeal of Section 119B, may a non-resident employee lodge a complaint to the Director concerning differential treatment compared to a local employee?
Yes. Section 19A empowers the Director to investigate and adjudicate any complaint concerning discrimination in employment, including discrimination involving non-resident employees compared to local employees.
7. Does the protection against discrimination in employment apply to all employees regardless of wage limits?
Yes. The protection against discrimination applies to any employee who enters into a contract of service with an employer, regardless of the employee’s wage level.
1. What is the purpose of introducing a new provision on forced labour through the amendment of the Ordinance?
The new provision concerning forced labour has been introduced to prevent the practice of forced labour within the workplace.
2. How is forced labour defined under the amendment?
Forced labour is defined as an act whereby an employer threatens, deceives, or coerces an employee to perform any activity, service, or work, and prevents the employee from leaving the place or area where such activity, service, or work is performed.
3. What elements must be proven to establish that forced labour has occurred?
To establish the existence of forced labour, it must be proven that: There was threat, deception, or coercion against the employee to perform work; and There was an act of restraining the employee from leaving the place of work.
4. Can a claim of forced labour be raised if an employee had given verbal or written consent to perform the work?
Yes. The issue of forced labour may still be raised even if the employee had given verbal or written consent.
This is because consent alone does not necessarily indicate voluntariness. If consent was obtained through threat, coercion, deception, or false promises that were not honoured, causing the employee to be compelled to work due to restrictions on movement, the circumstances may amount to forced labour.
1. What changes have been made to this Part following the amendment of the Ordinance?
The Ordinance has been amended to include: The Second Schedule, listing the types of employment prohibited for children and young persons; and The Third Schedule, listing hazardous occupations.
2. Are there any exceptions allowing children and young persons to engage in hazardous work under the new Third Schedule?
No. Children and young persons are prohibited from engaging in any hazardous work or any employment other than those permitted under this section, except under a contract of apprenticeship or while undergoing vocational training under personal supervision.
3. What is meant by “light work” under Section 71A?
“Light work” refers to any work undertaken by a child or young person that: Is not likely to endanger their health or physical or mental development; and Does not affect their attendance at school, participation in religious education, or attendance in vocational orientation or training programmes approved by the relevant authorities.
4. Following the amendment, are young persons allowed to work as domestic workers or in bars or clubs?
No. The amended Section 73 expressly prohibits young persons from being employed as domestic workers or in any employment at bars or clubs.
1. Under the amendments, is it still necessary for employers to obtain the Director’s approval if they wish to require female employees in industrial or agricultural undertakings to work between 10.00 p.m. and 5.00 a.m.?
No. Following the repeal of Part XIA concerning the employment of women, employers are no longer required to seek the Director’s approval to require female employees engaged in industrial or agricultural undertakings to work between 10.00 p.m. and 5.00 a.m.
2. Will the Director’s prior approval under Section 76 for exemptions from night work restrictions be revoked due to the repeal of Part XIA? Does the employer still have an obligation to provide transport facilities as previously required?
Following the amendment, employers are permitted to employ female employees for night work without restrictions.
Nevertheless, employers remain responsible for ensuring the safety of their female employees.
The provision of transport facilities may still be stipulated under the contract of service.
Additionally, the Minister may issue regulations under Section 105(10) in relation to matters concerning night work.
1. What amendments have been made to the definition of “confinement”?
The definition of “confinement” has been amended to mean the birth of a child occurring after at least twenty-two (22) weeks of pregnancy, resulting in the delivery of one or more children, whether born alive or deceased.
2. After the amendments come into force, is a female employee who already has five living children still entitled to 98 days of maternity leave for each subsequent confinement?
Yes. A female employee is entitled to 98 days of maternity leave for every confinement occurring after twenty-two (22) weeks of pregnancy, regardless of the number of living children.
3. May an employer require a female employee to return to work before the end of her maternity leave?
No. An employee may only return to work earlier upon her own volition, with the employer’s consent, and provided she is certified medically fit to resume work by a registered medical practitioner.
4. If a female employee resumes work early, is the employer obliged to provide additional payment besides the maternity allowance?
No. The Ordinance does not require employers to provide any payment beyond the maternity allowance.
However, employers may offer additional payments under the contract of service, if any.
5. If a female employee gives birth on or after the effective date of the amendment, is she entitled to 98 days of maternity leave?
Yes. A female employee who delivers on or after the effective date of the amendment is entitled to 98 days of maternity leave, provided that she meets the eligibility requirements.
6. Is a female employee who is already on maternity leave when the amendment comes into force entitled to 98 days of maternity leave?
No. She remains entitled to maternity leave under the previous provision, which was 60 days.
7. If a female employee who is entitled to a maternity allowance agrees to return to work before completing her maternity leave, is the employer obliged to provide any additional payment besides the maternity allowance?
No. There is no requirement for the employer to provide additional payments beyond the maternity allowance should the female employee voluntarily agree to return to work earlier.
However, employers are encouraged to provide additional payments if deemed appropriate.
8. Can an employer terminate the services of a pregnant female employee?
Under the amendments, an employer is prohibited from terminating the employment of a pregnant female employee or one who is suffering from an illness arising out of her pregnancy, except in the following circumstances:
(i). Termination due to a wilful breach of the contract of service (Section 13(2));
(ii). Termination due to misconduct (Section 14(1)); or
(iii). Termination due to the closure of the employer’s business.
1. Can a contract of service between an employer and a domestic worker be terminated, and what are the applicable notice periods?
Yes. A contract of service may be terminated by either the employer or the domestic worker:
In ordinary circumstances — by giving fourteen (14) days’ notice or payment of fourteen (14) days’ wages in lieu of notice; or
In cases of breach of the terms and conditions of the contract — without notice and without payment of wages in lieu of notice.
2. Are domestic workers entitled to termination benefits or wages in lieu of notice?
No. Domestic workers are not entitled to termination benefits or wages in lieu of notice as they are exempted under the First Schedule of the Ordinance.
3. Under the amendments, is a domestic worker entitled to a weekly rest day as prescribed under the Ordinance?
Yes. The amended First Schedule no longer excludes the application of the provision relating to rest days for domestic workers.
Thus, domestic workers are now entitled to a weekly rest day.
1. Under what circumstances may an employee request a salary advance from the employer?
Following the amendment, Section 103 provides that salary advances exceeding one month’s wages may only be granted to an employee for the following purposes:
(a) To enable the employee to purchase, build, or repair a house;
(b) To enable the employee to purchase land;
(c) To enable the employee to purchase livestock;
(d) To enable the employee to purchase a motorcar, motorcycle, or bicycle;
(e) To enable the employee to purchase shares in the employer’s business offered for sale by the employer;
(ea) To enable the employee to purchase a computer;
(eb) To enable the employee to pay for medical expenses for themselves or their immediate family members;
(ec) To enable the employee to cover daily expenses while awaiting payment of periodic benefits for temporary disability under the Employees’ Social Security Act 1969; or
(ed) To enable the employee to pay for educational expenses for themselves or their immediate family members.
1. Under the amendments, are employees earning more than RM4,000.00 per month entitled to public holiday pay under Section 104(1)?
Yes. Employees earning more than RM4,000.00 per month are entitled to public holidays under Section 104(1) of the Ordinance.
2. What is the entitlement to public holidays for employees after the enforcement of the amended Ordinance?
Following the amendments, employees are entitled to eighteen (18) days of public holidays per year, as follows:
(a). Of the eighteen (18) gazetted public holidays under the Public Holidays Ordinance (Sarawak) [Cap. 8] (1958 Edition), six (6) mandatory holidays are:
i. National Day;
ii. The Birthday of the Yang di-Pertuan Agong;
iii. The Birthday of the Yang di-Pertua Negeri of Sarawak;
iv. Labour Day;
v. Malaysia Day; and
vi. Sarawak Independence Day;
The remaining twelve (12) holidays shall be determined based on the religion and culture of the employee; and
(b). Any additional holidays declared by the Sarawak Government as additional public holidays.
1. Why has the weekly working hours been reduced from 48 hours to 45 hours under the amendments to the Ordinance?
The weekly working hours have been reduced in order to align with the International Labour Organization’s Reduction of Hours of Work Recommendation, 1962 (No. 116), which recommends that countries practising a 48-hour work week take steps to reduce working hours.
2. May an employer reduce an employee’s salary following the implementation of the 45-hour weekly work limit?
No. The employee’s salary is a condition agreed upon in the contract of service and therefore may not be reduced on this basis.
3. What are the employer’s responsibilities upon the enforcement of the reduction in weekly working hours?
Employers are required to amend the working hours stated in the contract of service so that they are consistent with the amendment to the Ordinance, and to provide a copy of the amended contract to the employee concerned.
4. Does the 45-hour work week include rest breaks?
No. Rest breaks are not included in working hours, provided the employee is free to use the time and move about as they wish during the break.
5. To implement the reduction of working hours from 48 hours to 45 hours per week, may the employer reduce the number of working days from six to five days per week and increase daily working hours from 8 hours to 9 hours?
Yes. The proviso under Section 105(1) allows daily working hours to be extended up to 9 hours by mutual agreement, provided that working hours on one or more other days in the week are reduced to less than 8 hours.
6. If an employer practising a six-day work week reduces daily working hours from 8 hours to 7.5 hours following the enforcement of the amendment, should the calculation of the hourly rate of pay be based on 7.5 hours?
Yes. The hourly rate of pay should be calculated based on 7.5 hours because the normal working hours have changed.
The term “hourly rate of pay” refers to the ordinary rate of pay divided by the normal daily working hours.
7. For employees who are paid on an hourly basis, may an employer pay RM8.17 per hour on the grounds that the Ordinance amendments have not yet come into force?
No. The wages paid by employers to employees are governed by the Minimum Wages Order 2024, which stipulates that the minimum hourly wage for employees paid on an hourly basis is RM8.72 per hour.
8. How may an employer implement the reduction in weekly working hours from 48 hours to 45 hours?
The reduction in weekly working hours from 48 to 45 hours may be implemented through the following methods:
Example 1:
By reducing daily working hours throughout the week, for instance by scheduling an earlier end time to the working day.
Before the Amendment | After the Amendment | |||||
Day | Waktu Kerja | Number of Hours | Hari | Waktu Kerja | Bilangan Jam | |
Isnin | 8.00 pagi – 5.00 petang | 8 | Isnin | 8.00 pagi – 4.30 petang | 7.5 | |
Selasa | 8.00 pagi – 5.00 petang | 8 | Selasa | 8.00 pagi – 4.30 petang | 7.5 | |
Rabu | 8.00 pagi – 5.00 petang | 8 | Rabu | 8.00 pagi – 4.30 petang | 7.5 | |
Khamis | 8.00 pagi – 5.00 petang | 8 | Khamis | 8.00 pagi – 4.30 petang | 7.5 | |
Jumaat | 8.00 pagi – 5.00 petang | 8 | Jumaat | 8.00 pagi – 4.30 petang | 7.5 | |
Sabtu | 8.00 pagi – 5.00 petang | 8 | Sabtu | 8.00 pagi – 4.30 petang | 7.5 | |
Ahad | Hari Rehat | – | Ahad | Hari Rehat | – | |
Jumlah Jam Seminggu | 48 | Jumlah Jam Seminggu | 45 | |||
Waktu Rehat 12.00 tengah hari – 1.00 petang | Waktu Rehat 12.00 tengah hari – 1.00 petang | |||||
Example 2: | ||||||
Before the Amendment | After the Amendment | |||||
Day | Working Hours | Number of Hours | Day | Working Hours | Number of Hours | |
Isnin | 8.00 pagi – 5.00 petang | 8 | Isnin | 8.30 pagi – 5.00 petang | 7.5 | |
Selasa | 8.00 pagi – 5.00 petang | 8 | Selasa | 8.30 pagi – 5.00 petang | 7.5 | |
Rabu | 8.00 pagi – 5.00 petang | 8 | Rabu | 8.30 pagi – 5.00 petang | 7.5 | |
Khamis | 8.00 pagi – 5.00 petang | 8 | Khamis | 8.30 pagi – 5.00 petang | 7.5 | |
Jumaat | 8.00 pagi – 5.00 petang | 8 | Jumaat | 8.30 pagi – 5.00 petang | 7.5 | |
Sabtu | 8.00 pagi – 5.00 petang | 8 | Sabtu | 8.30 pagi – 5.00 petang | 7.5 | |
Ahad | Hari Rehat | – | Ahad | Hari Rehat | – | |
Jumlah Jam Seminggu | 48 | Jumlah Jam Seminggu | 45 | |||
Waktu Rehat 12.00 tengah hari – 1.00 petang | Waktu Rehat 12.00 tengah hari – 1.00 petang | |||||
Example 3: | ||||||
Before the Amendment | After the Amendment | |||||
Day | Working Hours | Number of Hours | Day | Working Hours | Number of Hours | |
Isnin | 8.00 pagi – 5.00 petang | 8 | Isnin | 8.00 pagi – 5.00 petang | 8 | |
Selasa | 8.00 pagi – 5.00 petang | 8 | Selasa | 8.00 pagi – 5.00 petang | 8 | |
Rabu | 8.00 pagi – 5.00 petang | 8 | Rabu | 8.00 pagi – 5.00 petang | 8 | |
Khamis | 8.00 pagi – 5.00 petang | 8 | Khamis | 8.00 pagi – 5.00 petang | 8 | |
Jumaat | 8.00 pagi – 5.00 petang | 8 | Jumaat | 8.00 pagi – 5.00 petang | 8 | |
Sabtu | 8.00 pagi – 5.00 petang | 8 | Sabtu | 8.00 pagi – 1.00 petang | 5 | |
Ahad | Hari Rehat | – | Ahad | Hari Rehat | – | |
Jumlah Jam Seminggu | 48 | Jumlah Jam Seminggu | 45 | |||
Waktu Rehat 12.00 tengah hari – 1.00 petang | Waktu Rehat 12.00 tengah hari – 1.00 petang kecuali Hari Sabtu | |||||
9. If an employer practising a six-day work week reduces daily working hours from 8 hours to 7.5 hours to comply with the 45-hour weekly work requirement, how should the Ordinary Rate of Pay (ORP) and the Hourly Rate of Pay (HRP) be calculated for the purpose of overtime payment?
10. If an employer practising a six-day work week maintains daily working hours of 8 hours from Monday to Friday and reduces Saturday’s working hours to 5 hours to comply with the 45-hour weekly work requirement, how should the Ordinary Rate of Pay (ORP) and the Hourly Rate of Pay (HRP) be calculated for the purpose of overtime payment?
1. Why have the entitlements for sick leave and hospitalization sick leave been separated through this amendment to the Act?
The amendment to this Ordinance has separated the entitlements for sick leave and hospitalization sick leave, where employees will receive higher paid sick leave entitlement, ranging from 74 to 82 days per year (depending on the length of service), as opposed to the previous entitlement of 60 days per year. The purpose of this amendment is to allow employees sufficient time for treatment and recovery.
2. What is the new entitlement for sick leave and hospitalisation leave effective from 1 May 2025?
Effective from 1 May 2025, the new entitlement for sick leave and hospitalisation leave is as follows:
Employee’s Length of Service | Sick Leave Entitlement | Hospitalisation Leave Entitlement | Total Entitlement (After Amendment) |
---|---|---|---|
Less than 2 years | 14 days | 60 days | 74 days |
2 to 5 years | 18 days | 60 days | 78 days |
More than 5 years | 22 days | 60 days | 82 days |
1. What is the entitlement for paternity leave given to male employees under the amendment to this ordinance?
The entitlement for paternity leave is 7 consecutive days, including rest days and public holidays, with the starting date of the entitlement beginning from the date the employee’s wife gives birth.
2. When does paternity leave begin and can it be taken on a split basis?
No, paternity leave must be taken continuously for 7 days.
3. What are the requirements for a male employee to receive 7 days of paid paternity leave?
The requirements for receiving 7 days of paid paternity leave are:
(i) The male employee must be married to his spouse;
(ii) The male employee must have worked for at least 12 months with the same employer before commencing leave;
(iii) The employee must notify the employer at least 30 days before the spouse’s expected delivery date or as soon as possible after the birth;
(iv) The entitlement to paid paternity leave is limited to 5 births, regardless of the number of spouses.
4. If the wife experiences a miscarriage after 22 weeks of pregnancy, is the male employee entitled to paternity leave if all other conditions are met?
Yes. This is because the definition of “confinement” under Section 2 refers to the birth of a child that occurs after 22 weeks of pregnancy, regardless of whether the child is stillborn or alive.
5. If an employee has been granted paternity leave 5 times by his employer before the amendment comes into force, is the employee still entitled to the paternity leave stipulated under Section 105EA?
The employee is still entitled to paternity leave because the paternity leave granted prior to the amendment’s commencement date is not counted towards the maximum limit of 5 births.
6. Mr. Shamsul has been employed by Sama Jaya Company for 12 months before the commencement of the amendment. When his wife gives birth after the commencement date, is Mr. Shamsul entitled to paternity leave if all other conditions set out in the amendment are met?
Yes. Mr. Shamsul is entitled to paternity leave because Section 105EA(3) of the amendment states that a male employee who is married and has been employed by the same employer for at least 12 months immediately before commencing leave is entitled to paternity leave.
7. Are rest days and public holidays included in the calculation of the 7 days of paternity leave?
Yes, because paternity leave is calculated continuously from the date of the spouse’s delivery, including rest days and public holidays.
8. If a female employee experiences a miscarriage after 22 weeks of pregnancy, is her husband entitled to 7 days of paid paternity leave if all other conditions are met?
Yes, because the definition of “confinement” under Section 2 of the ordinance refers to giving birth after at least 22 weeks of pregnancy, regardless of whether the child is stillborn or alive.
1. What is the formula for calculating salary for an incomplete work month established through the amendment of this ordinance for employees paid on a monthly salary basis?
The formula for calculating incomplete salary for employees paid on a monthly salary basis is as follows:
Monthly salary x Number of eligible days within the salary period
Number of days in the salary period
2.With reference to the above formula, in which situations can this salary calculation for an incomplete work month be used?
The formula for calculating salary for an incomplete work month is applicable in the following situations:
a) The employee starts work after the first day of the month in question;
b) The employee’s employment is terminated before the end of the month in question;
c) The employee takes unpaid leave for one day or more during the month in question; or
d) The employee is absent due to attending national service under the National Service Act 1952 [Act 425] or attending National Service Training under the National Service Training Act 2003 [Act 628], or complying with any written law related to national service.
1. What amendment was made to the method of salary payment under sections 111 and 111A?
Through this amendment, payment of salary by cheque or cash is only allowed upon the written request of the employee to the employer. In addition, the amendment grants the Minister the authority to permit other recognized salary payment instruments.
2. With this amendment, does payment of salary by lawful money or cheque require approval from the Director?
No, Section 111A does not require payment of salary by lawful money or cheque to obtain approval from the Director. Payments can be made upon written request to the employer.
3. After the enactment of this amendment, can an employer pay salary for work done on rest days, public holidays, and overtime not later than the last day of the next salary period?
Yes, Section 109(2) provides that salary for work done on rest days, public holidays, and overtime can be paid not later than the last day of the next salary period.
1. What is the latest definition of a contractor for labour under this amendment?
The definition of a Labour Contractor has been amended to the new definition, which is someone who contracts with a principal, contractor, or subcontractor to supply labour required to perform all or any part of the work that the contractor or subcontractor has contracted to carry out for the principal or contractor.
2. What are the new responsibilities of a Labour Contractor who intends to supply workers?
A Labour Contractor intending to supply workers must:
(a) Report to the Director using the prescribed form within 14 days before supplying the workers;
(b) Enter into a written contract with the party to whom the workers are supplied; and
(c) Maintain and manage a register containing information on each supplied worker, which must be submitted to the Director for inspection.
3. Does the obligation to make a written contract apply to agreements made before the date the amendment comes into force?
No.
4. Is failing to ensure that the contract or related documents are available for inspection an offence under this Act?
Yes. A Labour Contractor can be fined up to RM50,000 if found guilty of any of the following offences:
(i) Supplying workers without being registered with the Director;
(ii) Failing to ensure that the contract or related documents are available for inspection;
(iii) Failing to maintain the workers’ register or ensuring the documents are available for inspection.
1. In what situations can the Director cancel the employment licence for non-resident workers issued under Section 119?
After the amendment, Section 119F lists the circumstances under which the Director can cancel a particular licence that has been issued. The steps that the employer needs to take in order to apply for the cancellation of the licence are also provided under the same section.
2. Under this amendment, does “non-resident employee” include an “expatriate” worker who has been issued a work permit by the Immigration Department of Malaysia?
Yes, the amended definition of “employee” includes any person who has entered into a service contract.
1. Under this amendment to the Ordinance, can an employee apply for flexible working from the employer?
Yes, employees can apply for flexible working from the employer.
2. What types of Flexible Work Arrangements can employees request from their employers?
Under the new provisions introduced by this amendment to the Ordinance, employees can apply for any of the following three (3) types of Flexible Work Arrangements:
(i) Change in working hours;
(ii) Change in working days;
(iii) Change in work location.
3. Can an employee apply for all three types of flexible work arrangements, i.e., change in working hours, working days, and work location from their employer?
Yes, Section 121A does not prevent an employee from applying for all three types of flexible work arrangements from the employer.
4. If an employee’s application for flexible work arrangements is approved, can the employer no longer provide rest days or annual leave thereafter?
No, the flexible work arrangement is subject to Chapter XIV, which stipulates the rights to rest days and annual leave entitlements for employees.
5. What are the employer’s responsibilities when receiving a flexible work arrangement application from their employee?
The employer is required to provide a response to either approve or reject the application within 60 days from the date the application is received. The response must be made in writing, and if the application is rejected, the employer must state the reasons for rejection.
6. Can the employer approve flexible work arrangements for a specific period? For example, approval can be given for only 6 months?
Yes, Chapter XIVB does not require the employer’s approval to be permanent or for a specific duration.
1. What is the purpose of the amendment to the Ordinance by including matters concerning the standard minimum housing, accommodation, and facilities for workers?
The amendment to the Ordinance incorporates provisions concerning the standard minimum housing, accommodation, and facilities for workers, with the aim of harmonising the rights and protection of workers in Sarawak with those of workers in Peninsular Malaysia. Furthermore, it seeks to ensure consistent protection for workers across the nation, including the employer’s obligation to provide housing and accommodation that is conducive and complies with the standards prescribed by the relevant authorities.
2. What is the distinction between housing and accommodation under Part IVA?
Housing refers to any building located on an estate, while accommodation pertains to housing for workers employed for purposes other than working on the estate.
3. What actions must an employer take if they intend to provide housing for workers on an estate?
An employer must submit the building and site plans, which have been approved by the relevant authority, to the Director for confirmation.
4. What additional facilities must an employer provide when offering housing to workers on an estate, as per Chapters XVB and XVC?
The employer is required to provide an adequate supply of water and electricity, a childcare centre, land for gardening and grazing, a community hall, sports and recreational facilities, and healthcare facilities.
5. What are examples of water supply sources that can be provided to workers on an estate?
Employers on an estate may supply water to workers from either public water sources or their own private sources, such as wells, rivers, underground water, ponds, etc. However, the use of private water sources requires prior approval from the Director.
6. What procedure must an employer on an estate follow if they wish to utilise their own water supply sources?
The employer must submit an application to obtain written approval from the Director, ensuring that the water source is suitable for drinking, and the water must be tested by a Health Medical Officer.
7. Can employers charge rent or fees in connection with housing, childcare centres, community halls, and sports or recreational facilities provided to workers on an estate?
No. According to section 122J, no rent or fees may be levied for any of the facilities provided.
8. Do the provisions concerning the standard minimum housing, accommodation, and facilities for workers apply to workers whose monthly salary exceeds RM4,000.00?
Yes, workers whose monthly salary exceeds RM4,000.00 are entitled to the standard minimum housing, accommodation, and facilities for workers as specified under Part IVA.
9. Who is required to apply for an accommodation certificate?
The employer and any provider of centralized accommodation are required to apply for the accommodation certificate.
10. Who is defined as a “centralized accommodation provider” under Chapter XVD?
Under Chapter XVD, a “centralized accommodation provider” refers to any person who provides and manages centralized accommodation for one or more employers, excluding employers who provide accommodation for their own workers.
11. Can an employer charge rent or fees for accommodation?
Under section 122AD, an employer may charge rent or fees for accommodation, provided such charges are subject to conditions set by the Minister.
12. Is failure by an employer or centralized accommodation provider to obtain an accommodation certificate an offence?
Yes, failure by either the employer or the centralized accommodation provider to obtain an accommodation certificate constitutes an offence. Such an offence may attract a fine not exceeding RM50,000 for the employer, or a fine not exceeding RM50,000, imprisonment for a term not exceeding one year, or both, for the centralized accommodation provider.
1. Why has the general penalty been increased from RM10,000.00 to RM50,000.00 under this amendment to the Ordinance?
The amendment to the Ordinance increases the fine for any person who commits an offence or violates any provision of this Ordinance or its regulations from a maximum fine of RM10,000.00 to a maximum fine of RM50,000.00. This increase aims to enhance compliance with the Ordinance.
2. Does the new penalty rate apply to ongoing cases in court?
No. The new penalty rate applies only to cases initiated after the effective date of the Ordinance.