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The amendments are said to mark a significant milestone for Malaysia with labour laws being standardised, in an aim to ensure equal rights and welfare for workers nationwide.
The Malaysia government has gazetted 1 May 2025 (Thursday) as the effective date for Sabah and Sarawak's respective Labour Ordinance Act (Amendment) 2025.
According to a media statement by KESUMA on 28 April 2025, Minister of Human Resources Steven Sim announced that both amendments will take effect on that date, with the exception of Part IVA, a special provision relating to minimum standards of housing, accommodation, and employee facilities.
The amendments are said to mark a significant milestone for the nation. For the first time since Malaysia’s establishment, labour laws have been successfully harmonised across Peninsular Malaysia, Sabah, and Sarawak, in an aim to ensure equal rights and welfare for workers in all three regions.
Overall, the amendments are also part of Malaysia's efforts to align national labour laws with international labour standards — specifically the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work 1998, in a bid to enhance the country’s global image and attracting more international investors.
This coordination will encompass three main acts, namely:
- The Employment Act 1955 [Act 275]
- The Minimum Standards of Housing, Accommodation and Employee Facilities Act 1990 [Act 446]
- The Children and Young Persons (Employment) Act 1966 [Act 350]
Key highlights of the amendments include:
- Expanding the ordinance’s coverage from employees earning RM2,500 and below to all employees, regardless of salary or employment type.
- Increasing maternity leave from 60 days to 98 days and introducing up to seven days of paternity leave.
- Reducing weekly working hours from 48 to 45.
- Introducing new provisions on flexible working arrangements, workplace discrimination, forced labour, sexual harassment, and housing and employee facilities in line with Act 446.
The gazette also includes two orders under the Sabah Labour Ordinance Act (Amendment) 2025 — namely, the Employment (Exemption) (Repeal) Order 2025 and the Employment Order (Amendment of the First Schedule) 2025 — as well as one order under the Sarawak Labour Ordinance (Amendment) Act 2025, which is the Employment (Exemption) (Repeal) Order 2025. All of these took effect on 1 May 2025.
KESUMA expressed confidence that these amendments will greatly benefit the welfare and rights of workers in Sabah and Sarawak, while further enhancing Malaysia’s reputation on the international stage.
READ MORE: Malaysia’s labour market shows steady growth: 16.73mn employed as of February 2025
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