Amendments to the Employment Act 1955: An Analysis of the Key Changes with Reference to International Labour Standards – A Positive Improvement for Malaysia’s Employment Regime?

Abstract

In Malaysia, employment issues are primarily governed by the Employment Act 1955 [Act 265] being the key piece of legislation on the matter. Hence, it is imperative to analyze whether the amendments brought by the Employment Amendment Act are positive improvements as compared to the current provisions of the Employment Act as well as adequate according to the international labour standards as stated by the International Labour Organization. In 2022, the Employment (Amendment) Act 2022 as well as the Employment (Amendment of First Schedule) Order 2022 were passed which will bring key changes to the employer-employee relationship in Malaysia. These amendments to the Employment Act 1955 are overdue, given that the last amendments made was more than a decade ago in April 2012. The research employs a qualitative methodology and incorporates a content analysis approach by examining the relevant legislation, the conventions, recommendations and publications of the International Labour Organization, as well as other publications from researchers. The main finding of the research is that although the amendments brought by the Employment (Amendment) Act 2022 were a positive improvement, there is still much room for improvement for the employment regime, as well as to expand the amendments to the concurrent legislation in Sabah and Sarawak. However, further research should be conducted to study whether the implementation and enforcement of the amendments to the Act is successful in improving the rights of employees in Malaysia and bring positive changes to the employer-employee relationship.