Managing HR Compliance in Malaysia: From Law to Workplace Practice 🔗

Introduction

Human resource compliance is increasingly important for Malaysian employers as employment practices are governed by a combination of legislation, subsidiary regulations, statutory contribution requirements and workplace policies. HR decisions involving recruitment, employment contracts, wages, working hours, leave, discipline, termination and employee welfare can expose an organisation to financial, operational and legal risks when they are not managed correctly. The Employment Act 1955 [Act 265] forms the fundamental legal framework for this programme. Following the Employment (Amendment) Act 2022, which took effect on 1 January 2023, the Act was expanded to cover private-sector employees irrespective of salary, although certain benefits such as overtime remain subject to specific eligibility rules. Major changes include the 45-hour work week, 98 days of maternity leave, seven days of paternity leave, flexible working arrangements, protection against discrimination, prohibition of forced labour and additional employer responsibilities relating to sexual harassment and foreign workers.