PUTRAJAYA: The implementation of flexible working arrangements is in line with the needs of an increasingly dynamic labour market that requires more adaptive, responsive and productivity-driven work models, says the Human Resources Ministry.
The ministry, in a statement on Saturday (April 25), said flexible working arrangements – which include hybrid work models, flexible working hours and arrangements – can enhance organisational efficiency while improving employee well-being.
"The implementation of these arrangements by the private sector must be carried out in a structured, phased manner and based on clear guidelines, in line with the provisions of the Employment Act 1955 (Sections 60P and 60Q) as well as equivalent provisions under the Sabah and Sarawak Labour Ordinances.
"It also, among others, gives employees the right to apply for flexible working arrangements and requires employers to provide a written response within a stipulated period,” the ministry said.
It also welcomed the call made by Prime Minister Datuk Seri Anwar Ibrahim for the private sector to consider flexible working arrangements as a strategic measure to address current economic challenges, including the impact of global supply chain disruptions.
It added that recent findings by TalentCorp Malaysia show that more than 5,340 organisations have implemented flexible working arrangements, benefiting over 1.6 million employees.
A total of 62 per cent of employers reported increased productivity when such arrangements were implemented in a structured manner, while 70 per cent of employees recorded higher job satisfaction due to flexibility in time and location.
"More than 90 per cent of organisations reported improved employee engagement as well as a reduction in employee turnover by between 15 and 20 per cent.
"These findings prove that the implementation of flexible working arrangements not only supports the continuity of organisational operations but also enhances productivity, strengthens work-life balance and contributes to talent retention in the national labour market,” the ministry said.
It also stressed that the implementation of flexible working arrangements must not be used as a reason for any reduction in employees’ salaries or benefits, unless there is a new agreement involving changes to overall working hours.
This assurance is important to ensure that workers’ rights and welfare continue to be protected and to give the workforce confidence to adapt to more flexible working arrangements, it added.
The ministry also encouraged employers, particularly in the private sector, to strengthen employees’ digital readiness to support the effective implementation of flexible working environments in line with their respective operational needs. – Bernama
