Littler Global Guide - Malaysia - Q2 2020

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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Employees Provident Fund (Amendment) Rules 2020

New Legislation Enacted

Author: Tan Su Ning, Senior Associate – Skrine

The Employees Provident Fund (Amendment) Rules 2020 is made to allow its members to make withdrawal from Account 2 for the purpose of sustainable living on the condition that the notice is given between April 1, 2020 to March 31, 2021, the withdraw is not exceeding RM500 per month, and the number of withdrawals does not exceed 12 times from the date of notice.

Order 2020 for Fees for Employment, Visit and Work Passes

New Order or Decree

Author: Tan Su Ning, Senior Associate – Skrine

A 25% remission is granted on the application fees (excluding processing fees) for the applications for temporary work passes under the two categories set out in paragraph 2 of the Order. The Order: (1) applies in respect of such passes that expire between April 1, 2020 and December 31, 2020; (2) does not apply to applications for new employment passes during that period; and (3) does not apply to applications for temporary employment passes for domestic maids.

Standard Operating Procedures

Precedential Decision by Judiciary or Regulatory Agency

Author: Tan Su Ning, Senior Associate – Skrine

All businesses open for operations must comply with the Standard Operating Procedures issued by the National Security Council (NSC), and also the sector-specific SOPs where applicable. Employers are required to ensure the Standard Operating Procedures are complied with.

Additional Subsidy Under PENJANA

Important Action by Regulatory Agency

Author: Tan Su Ning, Senior Associate – Skrine

The Wage Subsidy Program (WSP) will be extended by another three months and an additional RM5 billion has been allocated to the program. Under the scheme, eligible employers may receive a subsidy of RM600 per month per employee. Employers who are unable to operate during the Conditional Movement Control Order period are allowed to apply for the program. Under the Hiring Incentive Scheme, companies that employ Malaysians aged below 40 will receive an incentive of RM800 per month per staff for six months, while those that employ staff aged above 40 or employees with special needs will receive RM1,000 per month for six months. To encourage the hiring of youth, an incentive of RM600 per month will be given to employers who provide job opportunities and apprenticeships to fresh graduates.

Recovery Movement Control Order

Important Action by Regulatory Agency

Author: Tan Su Ning, Senior Associate – Skrine

On June 7, 2020, the Prime Minister of Malaysia announced that the Conditional Movement Control Order, which expires on June 9, 2020, will be replaced by the Recovery Movement Control Order (RMCO) from June 10, 2020 to August 31, 2020 (RMCO Period). In conjunction with the implementation of the RMCO, the Prevention and Control of Infectious Diseases (Measures within Infected Local Areas) (No. 7) Regulations 2020 (RMCO Regulations) were also published on June 9, 2020 and will have effect during the RMCO Period.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.