HR Ministry assures Employment Act amendments extend to all regardless of income

KUALA LUMPUR, March 23 — The Human Resources Ministry has moved to address recent concerns over amendments to Act 265 of the Employment Act 1955.

In a statement today, the ministry stated that a minister’s order would be issued to ensure the benefits and protections under Act 265 extend to all no matter their salary.

“Follow-up amendments need to be made to the First Schedule of Act 265 through an order in accordance with the powers of the human resources minister under sub-section 2(2) of Act 265 to enable all workers in the country to receive the minimum benefits and protections prescribed under Act 265,” it said.

The ministry also said a draft order to amend the First Schedule has been prepared and assured that the order will be enforced on the same date that the Employment (Amendment) Bill 2021 comes into effect.

Yesterday, an independent think tank questioned recent amendments to the Employment Act 1955, saying that complications could arise following the deletion, revision and addition of certain provisions within the Act.

Chief executive officer of the Galen Centre for Health and Social Policy Azrul Mohd Khalib gave an example that one of the definitions of an employee under the First Schedule is a person who has entered into a contract of service with an employer under which a person’s wages do not exceed RM2,000 a month.

Azrul said that it would potentially mean both women and men who earn more than RM2,000 would not be entitled to the newly agreed-upon maternity leave of 98 days and paternity leave of seven days as well as protection from pregnancy discrimination in the proposed Section 41A which prohibits the termination of a female employee on the grounds of pregnancy.

On Monday, amendments to the Employment Act 1955 (Act 265), which among others, proposed for paternity leave to be increased to seven days from three days currently, was approved in the Dewan Rakyat today with a majority voice vote.

Deputy Minister of Human Resources Datuk Awang Hashim, when tabling the Employment (Amendment) Bill 2021 for second reading, said the increase in paternity leave was to allow more space for men workers to manage family affairs after welcoming their child.

A total of 19 MPs from the government and Opposition blocs took part in debating the Bill with most of them touching on issues of paternity leave, maternity leave, minimum wage and forced labour.