Employment & Industrial Relations
Key Amendments to the Sabah and Sarawak Labour Ordinances Now in Effect from 1 May 2025
The Sabah Labour Ordinance (Amendment) Act 2025 and the Sarawak Labour Ordinance (Amendment) Act 2025 came into force on 1 May 2025, with the exception of Section IVA, which specifically addresses the minimum standards for workers’ housing, accommodation, and facilities.
These latest amendments to the Labour Ordinances harmonise the rights and protections accorded to employees across Peninsular Malaysia, Sabah and Sarawak. The standardisation involves the Employment Act 1955, the Minimum Standards of Housing, Accommodation, and Facilities for Workers Act 1990, and the Children and Young Persons (Employment) Act 1966.
Some of the key amendments include:
1. Extension of protection to all employees, regardless of salary level or job category.
2. Increase in maternity leave entitlement from 60 days to 98 days and introduction of seven days of paternity leave.
3. Reduction of the weekly working hours from 48 hours to 45 hours.
4. Provision for employees to apply for flexible working arrangement.
5. Inclusion of anti-discrimination provisions to promote fair and equitable treatment in the workplace.
6. Requirement for employers to inquire into any sexual harassment complaint made by an employee against another employee/employer, and for the Director General of Labour to inquire into complaints made by an employee against a sole proprietor employer.
