A NON-GOVERNMENTAL organisation (NGO) has suggested that the Dewan Negara send back the recent amendments to the Employment Act 1955 to the Dewan Rakyat for review and changes.
“The Employment Act 1955 has been long overdue for amendments and updated which would bring Malaysia’s employment legislation to the standards expected of a modern and progressive country,” commented Galen Centre for Health and Social Policy chief executive officer Azrul Mohd Khalib.
Citing the definitions of an employee under the First Schedule as an example, Azrul said that an employee is a person who has entered into a contract of service with an employer under which a person’s wages do not exceed RM2,000 a month.
“A wage cap should not be a pre-condition for a person to be considered an employee under the law. How about those who earn more than that amount?” he asked.
“However, the relevant paragraph on employee definitions in the First Schedule were not amended. Legally, it would mean that the entitlements, benefits and protections described under the Employment Act would only be applicable to those defined as employees in the legislation.”
Azrul pointed out that this could also mean that both women and men who earn more than RM2,000 would not be entitled to the newly agreed-upon maternity leave of 98 days and paternity leave of seven days.
“The same exclusion would occur to protection from pregnancy discrimination in the proposed Section 41A which prohibits the termination of a female employee on the grounds of pregnancy,” he argued.
“Meanwhile, Section 44A which deliberately and explicitly extended maternity leave and allowance entitlement to all female employees irrespective of how much she earns, notwithstanding the First Schedule paragraph, was strangely removed without a suitable replacement under this amendment.”
Azrul noted that this was extremely worrying as legally this would deprive new mothers who earn more than RM2,000 of these entitlements when previously they were provided with 60 days’ maternity leave.
“A Minister’s Order to be issued after the Bill has been successfully passed into law and gazetted is supposed to address these gaps. However, it is odd that these changes were not simply included in the proposed amendments Bill as they are known beforehand and necessary,” he commented.
“What is likely to happen is that companies will retain the 60 days maternity leave, and just not give the additional 38 days and paternity leave.
“After all, there is no legal obligation until there is a Minister’s Order. What is the rationale behind this approach? Why is there a need for a separate Minister’s Order when you can just incorporate the changes into this round of amendments to the Employment Act?” – March 22, 2022
