Image credit: HRM Asia
KUALA LUMPUR: Malaysian Employers Federation (MEF) reiterated its call for the government to delay enforcement of the Employment Act 1955 amendments slated for Jan 1.
MEF president Datuk Dr Syed Hussain Syed Husman said there were too many changes taking place affecting business during the challenging times such as the floods and Covid-19 pandemic.
"MEF appeals to the government to give more time to businesses to transition themselves to the new requirements.
"There is a real need to slow down a bit to allow businesses some space to breathe. MEF supports some of the changes, but it is about the timing. Now is not the right time to implement changes that will increase the cost of doing business.
"Businesses are still trying to recover from the aftermath of Covid-19, floods, uncertainties in the world economy and the Russian-Ukraine conflict and have appropriately raised the concerns of the retail trade by calling for further deferment of the costly amendments to the act which will be implemented on Jan 1."
Syed Hussain said employers should be given more time to reconsolidate and recover their businesses which were severely impacted due to the movement control order implemented in 2020 and 2021 to contain the spread of Covid-19 and effects of natural disasters such as floods.
"Implementing the amendments on Jan 1 will be a big burden to employers especially when the threshold entitlement to overtime is raised to RM4,000 from the current RM2,000.
"With effect from May 1, employers have to shoulder estimated additional wages of RM14 billion annually when the monthly minimum wage rates were reviewed from RM1,100 or RM1,200 per month to RM 1,500.
"Major changes via the Employment Act amendments will burden private sector employers with additional costs to the tune of about RM111 billion per year.
"Some employers are still struggling to fully implement the new minimum wage and some were reported to be not able to comply with the new minimum wage."
Syed Hussain also listed other provisions that would be challenging for the employers to implement such as flexible work arrangements (FWA) as there is no guideline issued by the authorities.
"Employees will also be entitled to full 60 days hospitalisation leave per year in addition to the non-hospitalisation sick leave.
"New procedures on application for foreign workers where prior approval must be obtained from the DG of Labour before submitting application for foreign workers.
"Other than the amendments, employers are also being faced with the possible amendments to Trade Unions Act that will introduce multiplicity of Unions at the workplace as compared to single unions currently."
The proposed new procedures on recognition of Unions and the formula to be used for recognition under the Industrial Relations Act will also be challenging to employers.
Syed Hussain said the new government should relook at some of the amendments specifically on the 1st Schedule to Employment Act which extends the coverage to every employee irrespective of their work position.
"Under the amendments to the act, those with wages of RM4,000 and above are now entitled to rest days; public holidays and specified hours of work but there is no mention of whether they can be required to perform work on rest days, public holidays and extra hours.
"It must be clarified as many multinationals invest in Malaysia and they operate in many countries with different time zones and require employees in Malaysia to work odd hours," he said.
Source: https://www.nst.com.my/news/nation/2022/12/863501/mef-reiterates-call-govt-delay-enforcement-employment-act-1955-amendments