Occupational Safety and Health (Amendment) Act 2022 (OSH Amendment)
- The OSH Amendment Act came into effect on 1.6.2024.
- The scope of the OSH Amendment Act has been widened to apply to all places of work including the public service and statutory authorities with the exception of the armed forces, domestic servants and work on board ships.
- An employee now has the statutory right to remove himself from imminent danger at work and is protected from undue consequences and discrimination by his employer for doing so.
- Further, employers are now required to:
- develop and implement policies and procedures for dealing with emergencies at work;
- ensure the safety & health of contractors and sub-contractors at work;
- conduct and implement a risk assessment in relation to safety & health risks at work;
- appoint a safety & health officer who is in charge of ensuring compliance with the provisions of OSHA at work; and
- ensure that a specific class of employees attend an occupational safety & health training course as prescribed by the Minister of Human Resources.
- Employers who fail to comply with certain safety & health requirements as prescribed by the OSHA are now liable to a penalty of up to RM500,000.00.
Minimum Wages Order 2024 (MWO)
- The MWO 2024, which prescribes minimum monthly wages of RM 1,700.00, will come into force in two stages this year.
- From 1.2.2025 onwards, minimum monthly wages of RM 1,700.00 will apply to:
- employers who have five employees or more; or
- employers who conduct professional activities pursuant to the Malaysia Standard Classification of Occupations 2020, regardless of the number of employees.
- From 1.8.2025 onwards, minimum monthly wages of RM 1,700.00 will apply to all employers across the board in Malaysia, regardless of the number of employees.
Employment Insurance System (Amendment) Act 2022 (EIS Amendment Act) & Employees’ Social Security (Amendment) Act 2024 (SOCSO Amendment Act)
- The Employment Insurance System Act 2017 and the Employees’ Social Security Act 1969 have been amended to increase the maximum limit of the insurability amount of wages for an employee from RM 5,000.00 to RM 6,000.00. Consequently, the mandatory contribution rates payable by employees and employers in respect of EIS and SOCSO contributions have also increased.
- Employers must comply with the revised contribution rates by 1.4.2025. Failure to comply will result in severe penalties, including imprisonment of up to two years, fines not exceeding RM10,000.00 or both.
- Employers are advised to take note of the new insurability rates and the increased contribution rates to ensure their payroll systems are updated to reflect these changes.
- SOCSO contributions and benefits apply to both local and foreign workers. However, EIS contributions and benefits only apply to local workers.
Anti-Sexual Harassment Act 2022 (ASHA)
- The ASHA came into effect on 8.3.2024 and has broadened the scope of sexual harassment complaints beyond the workplace. The ASHA has established a Tribunal for Anti-Sexual Harassment complaints (“the Tribunal”), which provides any individual (male or female) with a platform to file a sexual harassment complaint against another individual.
- Under the ASHA, sexual harassment is defined as any “any unwanted conduct of a sexual nature, in any form, whether verbal, non-verbal, visual, gestural or physical, directed at a person which is reasonably offensive or humiliating or is a threat to his well-being.”
- The Tribunal will however only hear complaints of incidents occurring on or after 8.3.2024 and may make any one or more of the following orders in its Award:
- an apology (including public apology);
- compensation of up to RM 250,000.00; and/or
- participation in corrective programmes.
- Awards of the tribunal must be complied with within 30 days and non-compliance of such an Award is an offence punishable by a fine, imprisonment or both.
- The Tribunal delivered its first award in July 2024 involving a sexual harassment complaint between a male employer and a female employee (the complainant). The Tribunal ruled in favor of the complainant and ordered the employer to issue a formal apology as requested by the complainant.
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