Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Industrial Relations (Amendment) Act 2020

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

Various provisions of the Industrial Relations (Amendment) Act 2020 (IRA 2020) became effective on January 1, 2021. Some of the key changes that became effective relate to when representations for dismissal without just cause can be referred to the Industrial Court; appointment to represent a party during conciliation; appeals of awards by the Industrial Court; procedures to follow when a workman who has lodged a representation under s.20 of IRA 1967 passes away; interest rate of payment of awards; penalties for violations of the IRA; authority to determine competency and/or recognition of a trade union; punishment for picketing, illegal strikes, and lockouts; among other changes.

Various important provisions are still scheduled to come into force, including those relating to claims for recognition, prohibition of industrial action pending recognition, collective bargaining, the Minister’s power to make regulations; and the First Schedule (list of essential services) of the Industrial Relations Act 1967 (IRA 1967). The insertion of new sections 12A and 12B on the sole bargaining rights has also not come into force.

Enactment of the COVID-19 Act

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

The Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19 Act) was gazetted on October 23, 2020, and will be in effect for two years. The COVID-19 Act, designed to mitigate the impact of the pandemic, introduced various temporary measures, including modifying relevant provisions in various Acts of Parliament, which include, amongst others, the Industrial Relations Act 1967 and the Private Employment Agencies Act 1981.

COVID-19 Orders and SOPs

Precedential Decision by Judiciary or Regulatory Agency

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

The government has extended the preventative measures that it has implemented in response to COVID-19. In December (the time of this writing), the Conditional Movement Control Order (CMCO) had been extended in Selangor, Kuala Lumpur and Sabah to January 14, 2021; the Recovery Conditional Movement Order (RMCO) was extended throughout the country to March 31, 2021. All businesses open for operations must comply with all relevant and sector-specific SOPs issued by the National Security Council (NSC) and other authorities, which are regularly updated. The CMCO, RMCO and SOPs are available on the NSC website.

New Requirement on Hiring of Expatriates

New Regulation or Official Guidance

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

On October 26, 2020, the Ministry of Human Resources announced that companies that intend to hire new expatriates are now required to advertise job vacancies via the MYFutureJobs Portal for a period of no less than 30 days. Only companies that are unable to find suitable local candidates after the 30-day period may proceed with their application to hire expatriates. If qualified local job seekers apply for the vacancy, the company must consider their applications.

If the company is unsuccessful in recruiting local candidates, MYFutureJobs will then issue a certificate with a recommendation by the Department of Labor on the hiring of an expatriate to fill the job vacancy. The company may proceed with the relevant projection or work pass application only after it receives the certificate from MYFutureJobs, and must upload the certificate, together with the relevant applications, on the Expatriate Services Division (ESD) portal.

Amendments to the Occupational Safety and Health Act 1994 (OSHA)

Proposed Bill or Initiative

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

The “OSHA Bill”, known as the Amendments to the Occupational Safety and Health Act 1994, seeks to widen the reach of the Act “to all places of work throughout Malaysia.” The bill defines “place of work” as any “premises where persons work”, and “premises” as “any land, building.”

If approved, employers/principals will be required to ensure the safety and health of virtually any person rendering services, as well as conduct and implement risk assessments at the place of work. The new law would also increase penalties for noncompliance and corporate officers may be held jointly or severally liable. Additionally, the employee would have the right to refuse to work if he/she reasonable believes that imminent danger exists under the circumstances.