Employment
The Employment Act extended to all employees in 2023
The Employment Act 1955 historically applied only below a wage ceiling. Amendments in force from January 2023 extended it to all employees regardless of wage, reduced weekly hours to 45, expanded maternity leave to 98 days and introduced seven days of paternity leave. This substantially widened the statutory floor for professional employees.
Governing law
- Employment Act 1955 — As amended by the Employment (Amendment) Act 2022, in force 2023.
- Industrial Relations Act 1967 — Unfair dismissal and trade union relations.
In practice
The Employment Act now covers all employees, with some provisions limited by a wage threshold. Maximum normal working hours are 45 per week. Maternity leave is 98 days; paternity leave is seven days. Dismissal must be for just cause or excuse, testable at the Industrial Court under section 20 of the IRA. Malaysia has no at-will employment — 'just cause or excuse' is a genuine substantive standard and reinstatement is a real remedy. Sabah and Sarawak apply their own Labour Ordinances rather than the Employment Act.