Littler Global Guide - Malaysia - Q4 2019

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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Additional Categories under the Self-Employment Social Security Fund

New Order or Decree

Author: Tan Su Ning, Senior Associate - Skrine

The First Schedule to the Self-Employment Social Security Act 2017 will be amended effective January 1, 2020, to include another 18 categories of self-employed persons who are required to make mandatory contributions to the Self-Employment Social Security Fund. The 18 categories include at least 27 sub-categories. The new categories include self-employed lawyers, accountants, architects, engineers, hawkers, dentists, tuition teachers, doctors, veterinarians, inventors, and household services.

Important Proposals to Amend Employment Law

Proposed Bill or Initiative

Author: Tan Su Ning, Senior Associate - Skrine

Budget 2020, published in October 2019 under the theme of “Driving Growth and Equitable Outcomes toward Shared Prosperity,” introduces various proposals, including: (1) an increase to the minimum wage to RM 1,200.00 per month in 2020 for “major cities;” (2) extend the eligibility of employees who are entitled to overtime to those whose monthly wages do not exceed RM 4,000.00; (3) increase maternity leave from 60 days to 90 days (effective 2021); (3) through the new Malaysians@Work initiative, increase employment opportunities by providing wage incentives to workers and incentives for employers to hire certain groups of individuals; (4) expand the coverage of the Employees Provident Fund (EPF) and the Self-Employment Social Security Scheme to self-employed individuals in various sectors; (5) improve the protection and procedures for handling sexual harassment complaints; and (6) amend the Employment Act 1955 to prohibit employment discrimination based on religion, ethnicity, gender, among other characteristics.

Key Amendments to Industrial Relations Law

Proposed Bill or Initiative

Author: Tan Su Ning, Senior Associate - Skrine

On December 19, 2019, the Senate passed the Industrial Relations (Amendment) Bill 2019 (Amendment Bill) to expedite the dispute resolution process when it comes to unfair dismissal claims. An effective date is to be determined. Under existing provisions, the Minister has a discretion to filter out frivolous unfair dismissal complaints and only refer claims which are deemed fit for the Industrial Court's adjudication. Pursuant to the Amendment Bill, the Minister's discretion has been removed. Moreover, parties now have an additional option as it relates to representation during conciliation meetings at the Industrial Relations Department. Aside from being represented by a member of a trade union of employers or workmen or an official of an organization of employers or workmen, both employers and employees now have the option to appoint also any person other than the categories of individuals aforementioned, to represent them. The Amendment Bill also has inserted new provisions in relation to sole bargaining rights. An additional provision has been included in the Amendment Bill to enable the Minister to stop a strike or lock-out in the event the strike or lock-out lasts beyond a certain time or extends beyond a certain scope, thus endangering the life, personal safety or health of the whole or part of the population. Any person dissatisfied with an award of the Industrial Court can appeal to the High Court within 14 days from the date of receipt of the award.

Amendments to Employees Provident Fund

Proposed Bill or Initiative

Author: Tan Su Ning, Senior Associate - Skrine

On December 19, 2019, the Senate passed the Employees Provident Fund (Amendment) Bill 2019. If approved, the amendment would allow the voluntary transfer of a husband’s EPF contributions into the account of his wife or wives. The bill, inter alia, provides for the deduction of two per cent EPF contributions to the wife or wives and updates provisions to prevent employers who did not pay contributions from leaving the country, without a court order.

Review of Personal Data Protection Laws

Important Action by Regulatory Agency

Author: Tan Su Ning, Senior Associate - Skrine

The Ministry of Communications and Multimedia is currently reviewing the Personal Data Protection Act 2010 to ensure it also applies to those receiving leaked information along with data leakers. The review also seeks to ensure that actions be taken against cross-border hackers activities. The government aims to table the revised law by June 2020.

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.