The Employment Act of 1955 will cover all employees beginning September 1, 2022.
In light of the previous update, we’ve compiled a list of frequently asked questions concerning the subject:
The EA Applies to all Workers
Question: What is the effect of the EA on all employees?
Answer: It implies that ALL of the provisions in the EA apply (as a minimum standard) to all employees, regardless of rank or compensation.
Working Hours (Maximum 45 hours)
Question: Are break times considered working hours?
Answer: If the employee is provided freedom during the break, break hours can be removed from the computation of working hours. A 30-minute break is also required.
Question: Can I omit my 15-minute tea break from the calculation?
Answer: If the employee is provided freedom during the break, break hours can be removed from the computation of working hours. A 30-minute break is also required.
Question: Can I still ask my workers to work more than 45 hours weekly?
Answer: Yes, the restriction of 45 hours a week refers to regular working hours. Work completed for more than 45 hours will be regarded over time.
Question: What is the maximum amount of overtime allowed?
Answer: The answer is 104 hours each month.
Maternity (98 days)
Question: When is this going to take effect?
Answer: The new regulations apply only to confinements beginning after September 1.
Question: A female employee is now on a 60-day maternity leave. Is she eligible for the extension?
Answer: No, it does not.
Paternity (7 days)
Question: Is the employee eligible for paternity leave if he has not served for 12 months?
Answer: No, it does not. To be eligible for paternity leave, the employee must have been with the company for at least 12 months.
Question: Will the male employee be eligible for paternity leave if his wife miscarries after 22 weeks of pregnancy?
Answer: Yes, his wife has been pregnant for at least 22 weeks, comparable to maternity leave (confinement).
Question: When will paid maternity leave begins, and may it be postponed?
Answer: According to the language “confinement,” paternity leave begins at the birth of the kid.
Question: Are the seven consecutive days made up of rest days or national holidays?
Answer: Because the entitlement is for seven consecutive days, it makes no difference if it happens on a rest day/public holiday, etc. The entitlement will run seven straight days after the child’s birth.
Specialty Groups
Employees making RM4000 or less per month will be eligible for the following:
- Overtime
- Payment for labor completed on a day off or a day of rest
- Work done on national holidays is compensated.
- Allowance for shift work
- Benefits of termination
Question: How can I know if my employee makes RM4,000 or less (First Schedule)?
Answer: i. It is based upon the definition of wages in section 2 of the Employment Act of 1955, which states that “wages” include:
Basic wage and all remuneration for tasks done in accordance with his employment contract, but excluding:
- Subsidy for lodging, food, fuel, lighting, water, or medical care
- Retirement/retrenchment/termination benefits, pension/provident fund
- Allowance for travel
- Reimbursement Bonus
- Annual bonus
- Commission, subsistence allowance, and overtime are exempt from the RM4000 level under the First Schedule.
Question: What is the overtime calculation for employees earning less than RM4000?
Answer: The exact computation must be used.
Question: Is it necessary to compute overtime based on the employee’s earnings of RM3000?
Answer: Yes, the regular rate of pay would be determined using RM3000.
Executive Position
Question: The prior executive level’s salary was more than RM2000, and there was no OT. But now that the wage has been upped to RM4000 by legislation do they still get OT even if they are at the executive level? Can these individuals still work flexibly?
Answer: Yes, as long as the monthly income is less than RM4000, the employer must provide OT regardless of position.
All employees are eligible to apply for flexible work. However, some restrictions must be met, and not all occupations are suited for flexible employment.
Overtime (OT)
Question: Can employees earning less than RM4000 make up their OT through annual leave?
Answer: The answer is no.
EA versus Offer Letter
Question: Is the former regulation that workers under RM2000 must follow EA, and those over RM2001 can follow the offer letter still in effect? Or has it been updated to RM4001 or higher?
Answer: The price has been raised to RM4000 and beyond, although some restrictions still apply.
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