For happy and productive workers

Happy at work: Keeping our workers mentally healthy is very important as mental health issues are plaguing our workforce more and more now. – 123rf.com

THE new year is here, and so are the eagerly awaited amendments to the Employment Act 1955 – dashing the hopes of employers who have been urging for their implementation to be deferred again.

Many employers in Malaysia expressed concerns when Human Resources Minister V. Sivakumar announced on Dec 21 that the government was going ahead and implementing amendments to the Employment Act 1955 starting from today, Jan 1.

Employers, however, argued that they would need more time to ensure they can properly comply with the law.

However, experts believe that the proposed amendments will greatly benefit employees and be an investment for the future generation.

The amendments, made in accordance with the standards of the International Labour Organisation (ILO), were passed in Dewan Rakyat in March last year and gazetted in May.

They include the extension of maternity leave from 60 days to 98 days, a seven-day paternity leave, and reduced weekly working hours from 48 to 45 hours. Another is the requirement that approval is needed from the Labour Department’s director-general prior to recruiting foreign labour.

As Universiti Utara Malaysia economics professor Dr K. Kuperan Viswanathan puts it, the government is doing the right thing by moving forward to implement the Employment (Amendment) Act 2022.

“These amendments are important for workers’ welfare and especially for women who are working and having children at the same time.

“The paternity leave also will enable fathers to play a bigger role in care provision in the early days of the child after delivery,” he says.

Prof Kuperan notes that the amendments provide greater benefits to workers especially for the care of children in the early days after delivery.

“This has to be seen as an investment in the future generations.

“This (amendment) will also bring the labour law provisions in line with those found in developed European countries,” he points out.

He adds that there is also increasing evidence coming from developed countries that reducing working hours from 48 hours to 45 hours does not reduce productivity but instead increases it.Companies will also have to bear the greater responsibility of providing a more humane and socially-responsible environment for women to work in and contribute to the economy, he adds.

“The argument that it will lead to high costs is too narrow and when compared with the developed countries of Europe, they are able to provide all these facilities for female and male employees while still being able to compete in the world market and sell their products and services.”

Prof Kuperan believes that providing more days of maternity leave will attract more women to remain in the labour market after marriage.

This, he says, benefits the labour market greatly.

“The amendments will benefit working mothers and will develop a greater sense of responsibility and contribution to the organisation for its social responsibility in looking after the female workforce in the labour market.

“It will lead to greater productivity and a sense of loyalty to the company or organisation.

“Longer paternity leave will also allow men to play a more supportive role in baby care and will contribute to greater household harmony and wellbeing,” he adds.

Prof Kuperan points out that recently, there have been increases in labour productivity due to new technologies and better education and much of the gains in productivity have accrued to employers’ higher profits, but not much has come back to workers in terms of higher wages.

“Improvements in other benefits such as increased days of maternity and paternity leave and shorter working hours are ways of giving some of the benefits back to the workers.

“The government should continue to stand its ground on implementing the amendments to the Employment Act and not defer it any further.

“The Malaysian economy is growing well now after the pandemic drag and now is the best time to implement the amendments to the Act,” he notes.

Fair labour

According to political science and law lecturer Assist Prof Dr Rajini Kumar Sreedharam, these amendments have to be welcomed as the perks will solve many unresolved issues between employers and employees.

As the amendments are based on ILO standards, they will provide a framework to better address labour issues, end unscrupulous workplace practices and improve workers’ welfare.

One of the examples he gives is that prior to the amendment, the Act applied only to employees earning up to RM2,000 a month, with some specified sections applying to all employees.

With the amendment, it now applies to all employees, irrespective of wages, even though there are some exemptions for employees earning more than RM4,000 a month.

Section 60P and 60Q of the Act also formalises flexible work, whereby employees can now apply in writing for flexible work arrangements from employers.

“Employers must respond with a decision within 60 days, and in cases of rejection, reasons must be given to employees.

“The flexible working arrangement is timely as the employers could attract and retain their employees.”

Malaysian Trades Union Congress (MTUC) president Effendy Abdul Ghani says the new benefits introduced under the amended Act will help Malaysia create a more attractive job market.

“Workers will definitely be affected in a more positive way as these amendments focus on achieving a good worklife balance. They are all about giving the workers what is long overdue.

“In the long run, these benefits will show in an increase of productivity,” he says.

Effendy says having the appropriate time for family, friends and hobbies will keep our workers happy and mentally healthy, which is very important seeing that mental health issues are plaguing our workforce more and more now.

“Long-term health of the workers is beneficial to the workers, employers and also the job market in general as we will be able to increase our productivity consistently and become a richer, stronger nation,” he says.

Ultimately, Effendy urges the government to ensure that the enforcement of the amendments is aggressive and effective.

“The issue that we commonly observe is that the laws are always there, but due to the lack of enforcement, many parties feel comfortable breaching the law, which in turn bleeds the worker of his/her rights and freedom and makes the law redundant.

“The faith of all parties on labour laws needs to be revived and renewed.

“What better time than now, when we have a new government for the rakyat,” he says.