Employment (Amendment) 1

LAWS OF MALAYSIA

Act A1651

EMPLOYMENT (AMENDMENT) ACT 2022

2 Laws of Malaysia Act A1651

Date of Royal Assent ... ... 26 April 2022

Date of publication in the ... ... 10 May 2022

Gazette

Publisher’s Copyright C
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 Employment (Amendment) 3

LAWS OF MALAYSIA

Act A1651

EMPLOYMENT (AMENDMENT) ACT 2022

An Act to amend the Employment Act 1955.

[ ]

ENACTED by the Parliament of Malaysia as follows:

Short title and commencement

1. (1) This Act may be cited as the Employment (Amendment)

Act 2022.

(2) This Act comes into operation on a date to be appointed by

the Minister by notification in the Gazette and the Minister may
appoint different dates for the coming into operation of different
provisions of this Act.

Amendment of section 2

2. The Employment Act 1955 [Act 265], which is referred to as

the “principal Act” in this Act, is amended in subsection 2(1)—

(a) by inserting after the definition of “agricultural undertaking”

the following definition:

  ‘ “apprentice” means any person who has entered

into an apprenticeship contract;’;
4 Laws of Malaysia Act A1651

(b) in the definition of “apprenticeship contract”, by substituting

for the words “shall not be less than two years”
the words “shall be for a minimum period of six months
and a maximum period of twenty four months”;

(c) in the definition of “domestic servant”, by substituting

for the words “domestic servant” the words “domestic
employee”; and

(d) in the definition of “foreign domestic servant”,

by substituting for the word “servant” wherever appearing
the word “employee”.

Amendment of section 4

3. Section 4 of the principal Act is amended—

(a) by substituting for the words “, 69b, 69c,” the word

“or”; and

(b) by substituting for the word “fourteen” the word

“twenty-one”.

New section 18a

4. The principal Act is amended by inserting after section 18

the following section:

“Calculation of wages for incomplete month’s work

18 a .  Notwithstanding section 60 i , an employee who is

employed on a monthly rate of pay and has not completed a
whole month of service—

(a) where he commenced employment after the first day

of the month;

(b) where his employment was terminated before

the end of the month;

(c) where he took leave of absence without pay for one

or more days of the month; or
 Employment (Amendment) 5

(d) where he took leave of absence by reason of

having been called up for national service under
the National Service Act 1952 [Act 425], to present
himself for national service training as required
under the National Service Training Act 2003 [Act 628]
or to comply with any other written law relating to
national service,

shall be paid wages due to him for that month calculated

according to the following formula:

Monthly wages Number of days

X eligible in the
Number of days of the particular
wage period wage period.”.

Amendment of section 22

5. Subsection 22(2) of the principal Act is amended by inserting

after the words “parents,” the words “spouse,”.

Amendment of section 25

6. Section 25 of the principal Act is amended—

(a) in the shoulder note, by substituting for the word “bank”

the words “financial institution”;

(b) in subsection (1), by substituting for the words “at a bank,

finance company, financial institution or other
institutions licensed or established under the Banking
and Financial Institutions Act 1989 [Act 372] or any other
written law, in any part of Malaysia” the words
“opened by a financial institution,”; and

(c) by inserting after subsection (2) the following subsections:

  “(3) For the purposes of this Part, “financial

institution” includes—

(a) a licensed bank and an approved issuer

of a designated payment instrument under
the Financial Services Act 2013 [Act 758];
6 Laws of Malaysia Act A1651

(b) a licensed Islamic bank and an approved

issuer of a designated Islamic payment
instrument under the Islamic Financial
Services Act 2013 [Act 759]; and

(c) a p r e s c r i b e d i n s t i t u t i o n u n d e r
the Development Financial Institutions
Act 2002 [Act 618].

  (4) The Minister may, by order, specify any

approved issuer of a designated payment instrument
or any approved issuer of a designated Islamic
payment instrument under paragraphs 3(a) and (b)
to be a recognized approved issuer of a designated
payment instrument or approved issuer of a designated
Islamic payment instrument for the purpose of payment
of wages under this Part.”.

Amendment of section 25a

7. Section 25a of the principal Act is amended—

(a) in the shoulder note, by substituting for the word “bank”

the words “financial institution”;

(b) in subsection (1), by substituting for the words “, other

than a domestic servant” the words “and subject to
subsection (2)”;

(c) by substituting for subsection (2) the following subsection:

  “(2)  The employer shall, upon the written request

of his employee under subsection (1), obtain approval
from the Director General for the payment of wages
to be paid in legal tender or by cheque.”;

(d) by inserting after subsection (2) the following subsection:

 “(2 a ) The Director General may impose any

condition as he may deem fit on the approval granted
under subsection (2).”;
 Employment (Amendment) 7

(e) in subsections (3), (5) and (6), by substituting for

the words “subsections (1) and (2)” wherever appearing
the words “subsection (1)”; and

(f) in subsection (5), by inserting after the word “employer”

the words “upon obtaining the approval under
subsection (2)”.

Amendment of Part VII

8. Part VII of the principal Act is amended in the heading

by substituting for the words “CONTRACTORS, PRINCIPALS
AND CONTRACTORS FOR LABOUR” the words “PRINCIPALS,
CONTRACTORS, SUB-CONTRACTORS AND CONTRACTORS
FOR LABOUR”.

Amendment of section 33a

9. Section 33a of the principal Act is amended—

(a) by inserting after subsection (1) the following subsection:

  “ ( 1 a )  A c o n t r a c t o r f o r l a b o u r r e f e r r e d t o
in subsection (1) who supplies any employee
to a principal, contractor or sub-contractor shall
enter into a contract in writing and shall make such contract
or any other document relating to such contract
available for inspection.”; and

(b) in subsection (3)—

(i) by deleting the word “or” at the end of paragraph (a);

(ii) by inserting after paragraph (a) the following

paragraph:

“(aa) fails to make such contract or any other

document relating to such contract
available for inspection as required
under subsection (1a); or”; and

(iii) by substituting for the word “ten” the word “fifty”.

8 Laws of Malaysia Act A1651

Deletion of Part VIII

10. The principal Act is amended by deleting Part VIII.

Amendment of Part IX

11. Part IX of the principal Act is amended in the heading

by substituting for the words “MATERNITY PROTECTION”
the words “PREGNANCY AND MATERNITY”.

Amendment of section 37

12. Subsection 37(1) of the principal Act is amended—

(a) by substituting for paragraph (aa) the following paragraph:

 “(aa)  Where a female employee is entitled to maternity

leave under subparagraph (a)(i), whether or not
she is entitled to receive maternity allowance from
her employer for the eligible period under paragraph (c),
or whether or not she has fulfilled the conditions
set out in paragraph (2)(a), she may, with the consent of
her employer, commence work at any time during
the eligible period if she has been certified fit to resume
work by a registered medical practitioner.”; and

(b) in subparagraph (d)(ii), by substituting for the word

“sixty” the word “ninety-eight”.

New section 41a

13. The principal Act is amended by inserting after section 41

the following section:

“Restriction on termination of pregnant female employee

41a.  (1)  Where a female employee is pregnant or is suffering

from an illness arising out of her pregnancy, it shall be
 Employment (Amendment) 9

an offence for her employer to terminate her services or

give her notice of termination of service, except on the grounds of—

(a) wilful breach of a condition of the contract

of service under subsection 13(2);

(b) misconduct under subsection 14(1); or

(c) closure of the employer’s business.

  (2) Where the service of a female employee under

subsection (1) is terminated, the burden of proving that such
termination is not on the ground of her pregnancy or on
the ground of illness arising out of her pregnancy, shall rest on
the employer.”.

Amendment of section 42

14. Section 42 of the principal Act is amended in the shoulder note

by substituting for the word “dismissal” the word “termination”.

Deletion of section 44a

15. The principal Act is amended by deleting section 44a.

Amendment of Part XI

16. Part XI of the principal Act is amended in the heading

by substituting for the word “SERVANTS” the word “EMPLOYEES”.

Amendment of section 57

17. Section 57 of the principal Act is amended by substituting

for the word “servant” wherever appearing the word “employee”.
10 Laws of Malaysia Act A1651

Amendment of section 57a

18. Section 57a of the principal Act is amended—

(a) in the shoulder note and subsection (1), by substituting

for the word “servant” the word “employee”; and

(b) in subsection (2), by substituting for the words

“ten thousand ringgit” the words “fifty thousand ringgit”.

Amendment of section 57b

19. Section 57b of the principal Act is amended—

(a) in the shoulder note and subsections (1) and (2),

by substituting for the word “servant” wherever appearing
the word “employee”; and

(b) in subsection (3), by substituting for the words

“ten thousand ringgit” the words “fifty thousand ringgit”.

Amendment of section 60a

20. Section 60a of the principal Act is amended—

in the shoulder note, by inserting after the word “work”

(a)
the words “and working at night”;

(b) in subsection (1), by substituting for the word

“forty-eight” wherever appearing the word
“forty-five”; and

(c) in subsection (6), by inserting after the word “rates”

the words “and prescribing matters relating to working
at night”.

Amendment of section 60c

21. Section 60c of the principal Act is amended—

(a) in subsection (1), by substituting for the word

“forty-eight” wherever appearing the word “forty-five”; and
 Employment (Amendment) 11

(b) by inserting after subsection (2) the following subsection:

 “(2a)  The Minister may make regulations relating

to the entitlement of allowance during shift work.”.

Amendment of section 60f

22. Subsection 60f(1) of the principal Act is amended—

(a) by deleting the first proviso; and

(b) in the further proviso, by substituting for the words

“And provided further” the word “Provided”.

New section 60fa

23. The principal Act is amended by inserting after section 60f

the following section:

“Paternity leave

60 fa . (1)  Subject to subsection (3), a married male

employee shall be entitled to a paid paternity leave
at his ordinary rate of pay for a period of seven consecutive
days in respect of each confinement.

  (2) The paternity leave under subsection (1) shall be

restricted to five confinements irrespective of the number
of spouses.

  (3)  A married male employee shall be entitled to paternity

leave from his employer if—

(a) he has been employed by the same employer

at least twelve months immediately before
the commencement of such paternity leave; and

(b) he has notified his employer of the pregnancy

of his spouse at least thirty days from the expected
confinement or as early as possible after the birth.”.
12 Laws of Malaysia Act A1651

Substitution of section 60k

24. The principal Act is amended by substituting for section 60k

the following section:

“Employment of foreign employee

60 k .  (1) No employer shall employ a foreign employee

unless prior approval has been obtained from
the Director General.

  (2) An application for the approval under subsection (1)

shall be made in the form and manner as may be determined
by the Director General.

  (3) Upon approval of the Director General under

this section, an employer shall, within fourteen days from
the date of the employment of a foreign employee, furnish
the Director General with the particulars relating to
the foreign employee in such manner as the Director General
may direct.

  (4)  The Director General may, subject to any written law,

approve an application under this section if the employer
complies with the following conditions:

(a) the employer satisfies the Director General that

on the date on which he makes the application—

(i) he has no outstanding matter relating to any

decision, order or directive issued under
this Act; or

(ii) he has no outstanding matter or case

relating to any conviction for any offence
under this Act, the Employees’ Social
Security Act 1969 [Act 4], the Employees’
Minimum Standards of Housing,
Accommodations and Amenities Act 1990
[Act 446] or the National Wages Consultative
Council Act 2011 [Act 732]; or

(b) the employer has not been convicted of any offence

under any written law in relation to anti-trafficking
in persons and forced labour.
 Employment (Amendment) 13

  (5) An employer who contravenes subsection (1)

commits an offence and shall, on conviction, be liable
to a fine not exceeding one hundred thousand ringgit
or to imprisonment for a term not exceeding five years
or to both.”.

New section 60ka

25. The principal Act is amended by inserting after section 60k

the following section:

“Termination of employment of foreign employee, etc.

60ka.  (1)  If the service of a foreign employee is terminated—

(a) by his employer;

(b) by reason of the expiry of the employment pass

issued by the Immigration Department of Malaysia
to the foreign employee; or

(c) by reason of the repatriation or deportation

of the foreign employee,

the employer shall, within thirty days of the termination

of service, inform the Director General of the termination in
the manner as may be determined by the Director General.

  (2) If a foreign employee terminates his service

or absconds from his place of employment, the employer
shall, within fourteen days of the termination of service
o r a f t e r t h e f o r e i g n e m p l o y e e ’s a b s e n c e , i n f o r m
the Director General in the manner as may be determined
by the Director General.”.

Deletion of section 60l

26. The principal Act is amended by deleting section 60l.

14 Laws of Malaysia Act A1651

New Part XIIc

27. The principal Act is amended by inserting after Part XIIb

the following part:

“Part XIIc
FLEXIBLE WORKING ARRANGEMENT

Flexible working arrangement

60 p . (1) Subject to Part XII or anything contained in

the contract of service, an employee may apply to an employer
for a flexible working arrangement to vary the hours of work,
days of work or place of work in relation to his employment.

  (2)  Where there is a collective agreement, any application

made by the employee under subsection (1) shall be consistent
with the terms and conditions in the collective agreement.

Application for flexible working arrangement

60 q . (1) The employee shall make an application for

flexible working arrangement under section 60p in writing
and in the form and manner as may be determined
by the Director General.

  (2) Upon the application made under subsection (1),

an employer shall, within sixty days from the date
such application is received, approve or refuse the application.

  (3)  The employer shall inform the employee in writing of

the employer’s approval or refusal of the application under
subsection (1) and in the case of a refusal, the employer
shall state the ground of such refusal.”.

Amendment of section 69

28. Section 69 of the principal Act is amended—

(a) in paragraph (2)(ii), by inserting after the words

“against a” the words “principal,”;
 Employment (Amendment) 15

(b) in subsection (4)—

(i) by substituting for the words “ten thousand ringgit”

the words “fifty thousand ringgit”; and

(ii) by substituting for the words “one hundred ringgit”

the words “one thousand ringgit”.

Deletion of sections 69b, 69c, 69d and 69e

29. The principal Act is amended by deleting sections 69b, 69c,

69d and 69e.

New section 69f

30. The principal Act is amended by inserting after section 69e

the following section:

“Discrimination in employment

69f.  (1)  The Director General may inquire into and decide
any dispute between an employee and his employer in respect
of any matter relating to discrimination in employment,
and the Director General may, pursuant to such decision,
make an order.

  (2) An employer who fails to comply with any order

of the Director General issued under subsection (1)
commits an offence and shall, on conviction, be liable to
a fine not exceeding fifty thousand ringgit; and shall also,
in the case of a continuing offence, be liable to a daily fine
not exceeding one thousand ringgit for each day
the offence continues after conviction.”.

Amendment of section 70

31. Section 70 of the principal Act is amended by substituting

for the words “, 69b and 69c” the words “and 69f”.
16 Laws of Malaysia Act A1651

Amendment of section 73

32. Subsection 73(1) of the principal Act is amended

by substituting for the words “, 69b or 69c” the words “or 69f”.

Amendment of section 77

33. Subsection 77(1) of the principal Act is amended by

substituting for the words “69b, 69c, 73” the words “69f or 73,”.

Amendment of section 81f

34. Section 81f of the principal Act is amended by substituting for

the words “ten thousand ringgit” the words “fifty thousand ringgit”.

Deletion of section 81g

35. The principal Act is amended by deleting section 81g.

New section 81h

36. The principal Act is amended by inserting after section 81g

the following section:

“Notice on sexual harassment

81h.  An employer shall, at all times, exhibit conspicuously

at the place of employment, a notice to raise awareness on
sexual harassment.”.

Amendment of section 82

37. Section 82 of the principal Act is amended—

(a) in the shoulder note, by deleting the words “issued

under Part XV”; and
 Employment (Amendment) 17

(b) in subsection (1)—

(i) by deleting the words “under Part XV”; and

(ii) in paragraph (b) of the proviso, by substituting

for the word “servant” the word “employee”.

Amendment of section 84

38. Section 84 of the principal Act is amended—

(a) by renumbering the existing section as subsection (1);

and

(b) by inserting after subsection (1) as renumbered

the following subsection:

  “(2)  Notwithstanding the provisions of any written law

to the contrary, the court of a First Class Magistrate
shall have jurisdiction to try any offence under
this Act and to award the full punishment
for any such offence.”.

Amendment of section 86

39. Section 86 of the principal Act is amended by substituting

for the words “, 69b, 69c” the words “or 69f,”.

New section 87a

40. The principal Act is amended by inserting after section 87

the following section:

“Court order for payments due to employee

87 a .  (1) Where an employer has been convicted of

an offence relating to the payment of wages or any other
payments payable to an employee under this Act, the court
before which he is convicted may order the employer
to pay any payment due to the employee in relation to
that offence.
18 Laws of Malaysia Act A1651

  (2) Where an employer fails to comply with an order

made under subsection (1), the court shall, on the application
of the employee, issue a warrant to levy the employer’s
property for any payments due under that subsection
in the following manner:

(a) by way of distress and sale of employer’s property

in accordance with the same procedure of execution
under the Rules of Court 2012 [P.U. (A) 205/2012]
and this execution shall apply mutatis mutandis
notwithstanding the amount in the order; or

(b) in the same manner as a fine as provided

under section 283 of the Criminal Procedure
Code [Act 593].”.

New section 90b

41. The principal Act is amended in Part XVII by inserting

before section 91 the following section:

“Forced labour

90 b .  Any employer who threatens, deceives or forces

an employee to do any activity, service or work and prevents
that employee from proceeding beyond the place or area where
such activity, service or work is done, commits an offence
and shall, on conviction, be liable to a fine not exceeding
one hundred thousand ringgit or to imprisonment for a term
not exceeding two years or to both.”.

Deletion of section 93

42. The principal Act is amended by deleting section 93.

Amendment of section 99a

43. S e c t i o n 9 9 a o f t h e p r i n c i p a l A c t i s a m e n d e d b y
substituting for the words “ten thousand ringgit” the words
“fifty thousand ringgit”.
 Employment (Amendment) 19

New section 101c

44. The principal Act is amended by inserting after section 101b

the following section:

“Presumption as to who is an employee and employer

101c.  (1)  In any proceeding for an offence under this Act,

in the absence of a written contract of service relating to
any category of employee under the First Schedule, it shall
be presumed until the contrary is proved that a person is
an employee—

(a) where his manner of work is subject to the control

or direction of another person;

(b) where his hours of work are subject to the control

or direction of another person;

(c) where he is provided with tools, materials

or equipments by another person to execute work;

(d) where his work constitutes an integral part of

another person’s business;

(e) where his work is performed solely for the benefit of

another person; or

(f) where payment is made to him in return for work

done by him at regular intervals and such payment
constitutes the majority of his income.

  (2)  For the purpose of subsection (1), it shall be presumed

until the contrary is proved that a person is an employer—

(a) where he controls or directs the manner of work

of another person;

(b) where he controls or directs the hours of work

of another person;

(c) where he provides tools, materials or equipments

to another person to execute work;
20 Laws of Malaysia Act A1651

(d) where the work of another person constitutes

an integral part of his business;

(e) where another person performs work solely for his

benefit; or

(f) whether or not payment is made by him in return

for work done for him by another person.

  (3) The first-mentioned person in subsection (2)

includes the agent, manager or factor of such first-mentioned
person.”.

Amendment of section 102

45. Subsection 102(2) of the principal Act is amended—

(a) by deleting paragraph (b);

(b) by inserting after paragraph (f) the following paragraphs:

“(fa) prescribing matters relating to rest day;

(fb) prescribing matters relating to flexible working

arrangement;”;

(c) in paragraph (i), by substituting for the words

“under section 69, 69b or 69c” the words “, and proceedings
under section 69 and 69f,”;

(d) by deleting paragraph (k); and

(e) in paragraph (m), by substituting for the word “servant”

the word “employee”.

Saving and transitional

46. (1) Any complaint, investigation, inquiry, trial, prosecution,

proceedings or appeal done, taken or commenced under the principal Act
immediately before the date of coming into operation
of this Act, shall be dealt with, continued and concluded under
and in accordance with the provisions of the principal Act as if
the principal Act had not been amended by this Act.
 Employment (Amendment) 21

(2) Any application for approval made under subsection 25a(2)

of the principal Act which is pending before the date of coming into
operation of this Act shall, on the date of coming into operation
of this Act, be dealt with in accordance with the provision of
the principal Act as amended by this Act.

(3) Any employer who, before the date of coming into operation
of this Act, has employed any foreign employee but who has not
fulfilled any of the requirements under section 60k of the principal
Act shall, on the date of coming into operation of this Act,
be dealt with in accordance with the provision of the principal
Act as if the principal Act had not been amended by this Act.