OBS amendments to make Malaysia Day a mandatory holiday for Sabahans among other changes


KUALA LUMPUR: Come next year, Sabahans can look forward to Malaysia Day being a gazetted public holiday.

Following the Dewan Rakyat's approval of the Sabah Labour Ordinance (Amendment) Bill 2024 (OBS Bill), Human Resources Minister Steven Sim highlighted that this amendment comes nearly two decades after the last update in 2005.

“Today, the government successfully tabled the OBS Bill for its second and third readings in the Dewan Rakyat,” Sim said during a press conference on Monday (Oct 14).

Initially tabled on July 17, the OBS Bill includes crucial amendments to enhance worker protections and align labour standards with modern practices.

A notable change is the addition of Malaysia Day as a mandatory holiday, alongside National Day, Labour Day, the King’s Birthday, and the Sabah Governor's Birthday.

One of the key aspects of the amendment is that overtime and public holiday pay will now be restricted to employees earning under RM4,000 per month.

The revised legislation also allows all employees to reduce their weekly working hours from 48 to 45 to promote better work-life balance.

Maternity leave will be extended from 60 to 98 days, and sick leave will be separated from hospitalisation leave, totalling 74 days combined.

Employers must now provide multiple salary payment options, including bank transfers. Additionally, penalties for violations will significantly increase, and fathers will receive 7 days of paternity leave.

New clauses have been introduced to combat discrimination, forced labour, and workplace sexual harassment. The amendments also support flexible work arrangements and improved facilities for employees.

The minimum working age is 13 years, with specific restrictions on hazardous jobs for younger individuals. These reforms represent a considerable step forward in protecting workers' rights and improving working conditions in Sabah.

Sim emphasised that these amendments are essential for ensuring equal rights and welfare for the 2.06 million workers in Sabah and Peninsular Malaysia, enhancing their status to meet international labour standards.

The Bill is slated for presentation in the Dewan Negara in early December 2024 for further deliberation and approval.

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