‘Employment Act still lacking despite positive changes’

PETALING JAYA: While amendments to the Employment Act 1955 (Act 265) can be seen as progress, gaps remain, said Women’s Aid Organisation deputy executive director Yu Ren Chung.

He said while the Employment (Amendment) Bill 2021 includes significant reforms that will positively impact millions of workers and families, many issues still need to be addressed.

He added that the Minister’s Order amending the First Schedule, which defines an employee, and the scope of the Act, is of particular urgency and must be made public without delay.

The Bill initially increased maternity leave from 60 to 90 days and paternity leave from three to seven days.

During the debate on the Bill, the Dewan Rakyat further increased maternity leave to 98 days, in line with international labour standards. “Creation of paternity leave is a milestone policy development, and seven days is a good first step.

“Paternity leave will help fathers play their part during the first days following childbirth, and help change norms towards men playing more equal roles at home,” he told theSun.

Yu said that Sections 44A and 81G, which extend maternity benefits and sexual harassment protections to all workers regardless of income, have been deleted.

“The explanatory statement of the Bill notes that this is because the blanket wage cap is being lifted. On March 23, Deputy Minister of Human Resources Datuk Awang Hashim said the wage cap will be removed through a Minister’s Order.

“If the order is not made, the Act would not apply to workers earning above RM2,000. Thus, the ministry must produce the order for scrutiny and enactment without delay.”

In addition, the Bill prohibits employers from terminating the employment of a pregnant employee, except under specific circumstances.

“The Bill empowers the Labour Department director-general to investigate employer-employee disputes on discrimination. However, it does not prohibit discrimination per se.

“Employers can be penalised for failing to comply with the director-general’s order following an investigation. But the employer will not be penalised for the discrimination itself, and this should be spelt out.

“Additionally, it should also include protection against discrimination for job-seekers.”

Yu said the new amended Section 37aa permits any woman (including those entitled to maternity leave pay) to return to work during her maternity leave.

While this gives women a choice on paper, he urged the government to take steps to ensure women are not coerced to return to work early.

He added that the sexual harassment provisions in the Employment Act remain weak and limited in scope. “To better address sexual harassment, the Anti-Sexual Harassment Bill 2021 must be improved and passed.”

Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said the extension of maternity leave would cost employers higher expenditure of about RM1.52 billion to about RM2.48 billion annually.

“The MEF believes the government should assist employers to bear the costs of increased maternity leave through the Social Security Fund, similar to the practice in other parts of Asean countries,” he said.

Paternity leave will help fathers play their part during the first days following childbirth, and help change norms towards men playing more equal roles at home (pic for illustration only). – MASRY CHE ANI/THESUN

Clickable Image
Clickable Image
Clickable Image