Ignore calls to delay enforcement of Employment Act changes, govt told

 

MTUC says the amendments to the Employment Act will benefit both workers and employers as well as the economy.

PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has urged the government to ignore calls by retailers to delay the enforcement of amendments to the Employment Act.

Its president, Effendy Abdul Ghani, said another postponement should not be allowed because employers had been given enough time to prepare for the changes.

The amendments were initially supposed to come into force in September, but this was deferred to Jan 1.

“The issue of another deferment does not arise,” Effendy told FMT, adding that the changes would benefit both workers and employers as well as the economy.

The amended Act provides for 98 days’ maternity leave, reduced working hours from 48 hours to 45 hours a week, and the extension of overtime payment entitlements to those earning up to RM4,000 a month.

Effendy said the increase in the salary ceiling of those entitled to overtime would lead to higher incomes which would translate to higher purchasing power.

On flexible working hours, he said it was based on a mutual agreement between employers and workers.

Yesterday, five associations representing retailers urged human resources minister V Sivakumar to further postpone the implementation of the amended Act pending a dialogue.

The associations said the retail industry was just beginning to recover from setbacks caused by the Covid-19 pandemic, and they feared adverse effects from the Act’s enforcement.

Malaysian Employers Federation president Syed Hussain Husman told FMT businesses needed more time to prepare for the changes.

“We support some of the changes, but timing is an issue,” he said. “Now is not the right time to implement changes that will increase the costs of doing business.”

He said there was a need to review some of the amendments, including the clause which states that the Act covers all employees regardless of position.

“Under the amendments, 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 work on rest days or public holidays or to put in extra hours,” he said.

“There is a need for clarity as many multinationals invest in Malaysia and they operate in many countries with different time zones. This requires Malaysian employees to work at odd hours.” - FMT