MEF expresses support towards postponing implementation of amended Employment Act 1995

It is particularly crucial for the implementation of the amendments to be done right as it would involve all employees in the private sector, estimated to be more than 10mn, its President said.

The Malaysian Employers Federation (MEF) has expressed its full support for Human Resources Minister Datuk Seri M. Saravanan's decision to defer the implementation of the amended Employment Act 1955 (EA 1955) to 1 January 2023.

MEF President Y.Bhg. Datuk Dr. Syed Hussain Syed Husman has said employers welcome the deferment as this would allow employers more time to ensure that the implementation of the amended EA 1955 is done smoothly and properly.

It is particularly crucial for the implementation of the amendments to be done right as it would involve all employees in the private sector, estimated to be more than 10mn, he highlighted.

Datuk Dr. Syed Hussain commented: “Proper planning of the implementation of amended EA 1955 will take time as the successful execution of any plan is in the details.

Setting the context, he further shared that industries are facing a shortage of about 1.2mn workers, and the arrival of about 47,000 new foreign workers thus far "is far below this".

“We appreciate the proactive measures taken by the Ministry of Human Resources to ensure that applications for foreign workers continue to be opened even though the system to process applications for new foreign workers is being revamped.”

Minister Saravanan announced the deferment on 26 August (Friday), citing that industry players needed more time for the amendments to come into force amidst shortage of foreign workers and recovery from the COVID-19 pandemic. 

However, the Minister assured that this would be the final postponement: "By hook or by crook, these amendments will be enforced on 1 January 2023." [Read the full update here]

ALSO READ: Amendments to Malaysia's Employment Act 1955: Legal experts' insights

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