‘Defer amendments to Employment Act’


PETALING JAYA: The Employment Act amendments scheduled to be introduced on Sept 1 should be put off until businesses are able to fully recover, says the Master Builders Association of Malaysia (MBAM).

Its president, Oliver Wee Hiang Chyn, stated that the construction industry will struggle to accommodate the additional costs incurred as a result of the Employment Act 1995 change, claiming that such costs were not budgeted for by contractors.

“The construction industry continues to deal with uncertain liabilities resulting from the Covid-19 pandemic and requires extensive time to fully recover their businesses.

“It is vital that the amendments be enforced at a later period to avoid any further additional costs of doing business,” he said in a statement.

Wee said the effects of the new minimum wage of RM1,500 would also be detrimental to the industry as employers would have to fork out more to keep their businesses running.

Despite operating at full force during the country’s transition to an endemic phase, manpower challenges have hampered the industry’s recovery process, he said, adding that this has resulted in project delays.

“The government should also look into a proper economic recovery plan for the industry,” he said.

Under labour amendments to take effect on Sept 1, there will be flexible working arrangements; an increase in overtime costs for employees with wages up to RM4,000 per month; a reduction of working hours from 48 hours to 45; 60 days of hospitalisation leave per year in addition to non-hospitalisation sick leave; an increase in maternity leave from 60 days to 98; and paternity leave of seven continuous days per birth.

Previously, several groups called on the government to delay the implementation of the changes, citing various reasons, including cost.

Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said the amendments would see employers absorb an estimated additional cost of RM110.99bil per year, which was very challenging due to the adverse effects of Covid-19.

SME Association of Malaysia president Ding Hong Sing called for the amendments to be implemented “step by step”.

He said companies were still reeling from the imposition of the new minimum wage of RM1,500 since May 1, which contributed to a 25% to 35% increase in monthly operating costs.

The Federation of Malaysian Business Association (FMBA) said the enforcement of the amendments will lead to increases in the price of goods and services as employers will have to allocate more resources to hiring and paying workers.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

construction industry , Employment Act ,

   

Next In Nation

Firefighters rescue boy after cone gets stuck on head
Court of Appeal acquits trader accused of molesting minor
Budget 2023: Cuepacs hoping for a month's bonus
RM90mil too paltry a sum to 'buy' PAS, says Hadi
Syed Saddiq did not inform EC of expenditure list for GE14 campaign, says MACC officer
Melaka schools to beef up security to prevent kidnapping attempts
Woman shared screenshots of her conversation with Ebit Lew containing lewd pictures, court told
Baby girl found abandoned at Bukit Jalil eatery
Banker confirms AmBank paid RM2.83bil to M’sian govt over 1MDB scandal
Lorry driver arrested for allegedly abusing twin sons

Others Also Read