MTUC urges employers to implement workers’ new rights

SHAH ALAM - The Malaysian Trades Union Congress (MTUC) asks employers to implement the Employment Act 1955 (Amendment 2022), which will be enforced from Jan 1 transparently, especially regarding overtime pay (OT) and employee rest time.

Its president Mohd Effendy Abdul Ghani said employers could not manipulate the amendment implementation.

“We urge employers not to manipulate overtime pay and employee rest time when the reduction of weekly working hours from 48 to 45 hours will be implemented later.

“Employers need to be aware that transparency in enforcing the amendment to the act will also benefit them because it will increase the productivity of employees and subsequently increase the employer’s own income,” he told Sinar Harian on Monday.

On Aug 26, Human Resources Minister Datuk Seri M. Saravanan announced that the Employment Act 1955 amendment that was supposed to go into effect on Sept 1, 2022, would now go into effect on Jan 1, 2023.

The reduction in weekly working hours allows employees with a salary of RM4,000 and below to be eligible for overtime pay when working on rest days, working on public holidays, shift allowance and termination benefits.

The amendment also involved flexible working arrangements for employees, an increase in maternity leave from 60 days to 98 days and paternity leave for husbands increased from three days to seven days.

Effendy stressed that the amendment enforcement of the act would create a win-win situation between workers, employers and the country.

“It will improve the scope of welfare and protection for workers. The workers’ incomes, especially B40, will increase and help them face the current high cost of living.

“The reduction of working hours to 45 hours a week and flexible work arrangements will also have a direct impact on increasing employee productivity.

“When productivity increases, the employers’ income increases and thus can help strengthen the national economy,” he said.

He explained that the reduction in weekly working hours gave the country a new benchmark to change working hours according to the international standard of 40 hours a week.

“This reduction in working hours can also help employees reduce stress at work and improve their quality and lifestyle.

“All the amendments made will also attract more citizens to work in the private sector thus overcoming the problem of lack of manpower that many employers are currently experiencing,” he commented.

In this regard, Effendy hoped that the government would be able to monitor to prevent employers who are unscrupulous, manipulating or not enforcing the amendment to the Employment Act 1955.

He emphasised that any employee who found their employer did not enforce the amendment should also file a complaint with the government to take immediate action.