February 20, 2026
Nurul Aisyah
Navigating Employment Law Changes in Malaysia
Malaysia has introduced several amendments to employment legislation in recent years. This guide breaks down the key changes every employer must know.
The amendments to the Employment Act 1955 represent the most significant overhaul of Malaysian labour law in decades. These changes expanded the Act's coverage to all employees regardless of salary threshold, introduced flexible working arrangement provisions, extended maternity leave to 98 days, and imposed stricter penalties for non-compliance.
One of the most impactful changes is the new right for employees to apply for flexible working arrangements. While employers are not obligated to approve every request, they must respond in writing within 60 days and provide reasons for any refusal.
We recommend conducting a comprehensive HR compliance audit at least annually, reviewing all employment contracts and policies against the latest legislative requirements.