Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q4 2023 Global Guide Quarterly updates   Download full Q4 2023 Global Guide Quarterly

New Requirements for Trade Unions

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner and Head of Employment, and Teng Wei Hun, Senior Associate – Skrine

New amendments to the Trade Unions Act 1959 were enacted in October 2023. These amendments aimed at easing the restrictions for union formation include:

• Allowing trade unions to be established across trade, occupation or industry;
• Empowering the Director General of Trade Unions (DG) to require information or documents regarding registered trade unions for purposes of maintaining a trade union register;
• Allowing the formation of multiple trade unions within the same establishment, trade, occupation or industry;
• Requiring the DG to inform a trade union in writing of any refusal to register the trade union, including the grounds for refusal;
• Limiting the grounds on which the DG may cancel or withdraw the registration certificate of a trade union;
• Removing the power of the DG to suspend a branch of a trade union;
• Lowering the number of trade union member votes required in a secret ballot for a proposed strike or lock-out; and
• Prohibiting restriction of membership in a trade union to those of a particular race, religion or nationality.

The effective date of the amendments have yet to be announced.

Employment Related Implications of 2024 Budget

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner and Head of Employment, and Teng Wei Hun, Senior Associate – Skrine

The newly enacted 2024 Budget, known as the “Supply Bill,” includes key employment-related provisions, including:

• Extending to Financial Year 2028 the income tax exemption on employment income for women returning to work after a career break;
• A special income tax rate of 15% for three consecutive years will be granted to a maximum of three non-citizen individuals in key or C-suite positions who earn a monthly salary of at least RM 35,000, in a new company approved for the Global Services Hub tax incentive;
• An increase in the monthly wage ceiling for Social Security Organization (SOCSO) contributions from RM 5,000 to RM 6,000;
• A monthly incentive of up to RM 1,500, for up to six months to be given by SOCSO to employers who hire individuals from vulnerable groups, such as disabled people, ex-convicts and senior citizens;
• Various measures aimed at upskilling and training, including an allocation of RM 6.8 billion for technical and vocational education and training.