Summary
The Sabah and Sarawak Labour Ordinance (Amendment) Acts 2025 officially came into effect on 1 May 2025, marking a crucial step in standardising labour laws across Malaysia. With these revisions, the government aims to ensure equal rights and welfare for workers throughout the nation, finally harmonising laws among Peninsular Malaysia, Sabah, and Sarawak after many years. The amendments also align Malaysia’s labour laws with international standards, particularly those set by the International Labour Organisation.
Among the key changes are an extension of coverage to all employees, an increase in maternity leave from 60 to 98 days, and a reduction in the maximum weekly working hours from 48 to 45. Furthermore, important provisions on flexible working arrangements and workplace discrimination have been introduced as well.
Source: Human Resources Online
Key Points
- The amendments came into force on 1 May 2025, standardising labour laws across Sabah, Sarawak, and Peninsular Malaysia.
- Introduces key updates, including maternity leave increased to 98 days and paternity leave up to 7 days.
- Expands coverage to all workers, regardless of salary or employment type.
- Reduces maximum weekly working hours from 48 to 45.
- New provisions address flexible working arrangements, workplace discrimination, forced labour, and sexual harassment.
- Aims to enhance Malaysia’s global image and attract international investors.
Why should I read this?
If you’re in HR or managing a business in Malaysia, this article is a must-read! The recent amendments to the Labour Ordinance represent a significant moment for workers’ rights across the nation. Understanding these changes is critical for compliance and ensuring fair treatment of employees. Plus, staying informed helps you navigate the evolving landscape of labour laws, making it easier for you to adapt your business practices to these new regulations.