The Employment Act 1955 (Act 265) is the foundation of labor law in Peninsular
Malaysia and Labuan. It sets the mandatory minimum benefits for employees,
ensuring they are protected regarding wages, working hours, and leave
entitlements.
Significant updates came into force on January 1, 2023, via Act A1651. These
amendments reduced the maximum weekly working hours from 48 to 45 hours and
increased maternity leave from 60 to 98 consecutive days. Additionally, a new
7-day paid paternity leave was introduced for married male employees, reflecting
a modern approach to work-life balance and family support.
The Act also provides a safety net for wage protection, mandating that wages
must be paid through financial institutions unless specific approval is
granted. It outlines strict notice periods for termination—ranging from four
to eight weeks depending on years of service—which apply automatically
unless a written contract provides more favorable terms.
