Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.
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Minimum Wage Increases
New Order or Decree
Author: Tan Su Ning, Senior Associate – Skrine
On January 2, 2020, the minimum wage increased to RM1,200 per month (with corresponding increase in daily and hourly wages) in the 56 localities listed in Minimum Wages Order 2020 Schedule. It states that the minimum wage rate payable to an employee who works within the 16 city councils and 40 municipal councils will be RM5.77 an hour or RM1,200 monthly. The rates payable for a four, five, and six-workday week will be RM69.23, RM55.38 and RM46.15, respectively. The minimum wage rates payable for those outside the listed areas will be RM5.29 an hour or RM1,100 per month, with the rates payable for a four, five, and six-workday week being RM63.46, RM50.77 and RM42.31, respectively.
COVID-19: Malaysian Government Imposes Movement Control Order and Caring
New Order or Decree
Author: Tan Su Ning, Senior Associate – Skrine
On March 27, 2020, the government announced the “Pakej Rangsangan Ekonomi Prihatin Rakyat” (Caring Package), a relief and economic stimulus package to assist individuals and businesses to weather the economic challenges brought about by the COVID-19 outbreak. Among other measures, the Caring Package includes: a wage subsidy program, to subsidize the salary of RM600 per month for every employee for three months; deferment/restructuring of Employees Provident Fund contributions; and exemptions of payments of the Human Resources Development Fund and deferment of income tax installment payments for three months commencing April 1, 2020. Additionally, under the Movement Control Order (in effect from March 18, 2020 to April 14, 2020), government and private offices remain closed, except those involved in essential services. Employers in nonessential services cannot require their employees to attend at the place or premises of work, but can implement work-from-home measures, to the extent possible.
COVID-19: Employees’ Provident Fund Withdrawal
New Regulation or Official Guidance
Author: Tan Su Ning, Senior Associate – Skrine
Based on the Prime Minister’s announcement on March 23, 2020, all employees below the age of 55 may withdraw the maximum amount of RM 500 per month for 12 months from their respective EPF account, beginning April 1, 2020.
Employee Retention Program for Employees on Unpaid Leave
New Regulation or Official Guidance
Author: Tan Su Ning, Senior Associate – Skrine
Where cost-cutting measures include a period of at least one month where employees will not be paid, as of March 16, 2020, employees may be able to claim RM600 per month for a maximum period of six months under a stimulus package provided by the Government.
Personal Data Protection Laws
Proposed Bill or Initiative
Author: Tan Su Ning, Senior Associate – Skrine
On February 14, 2020, The Ministry of Communications and Multimedia issued the Public Consultation Paper No. 01/2020 – Review of Personal Data Protection Act 2010 (PC01/2020) to seek the views and comments of the public on 22 issues set out in PC01/2020. Briefly, the issues for which feedback is sought are amongst others, extension of obligations to data processors, data portability, reporting of data breach, clarity in the data subject's consent, transfer of personal data outside Malaysia and right-of-data subject to know third party to whom personal data is disclosed.