NST: FMM mulling asking for 12-month deferral of amended Employment Act implementation

KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) is considering requesting for another deferral of the implementation of the amended Employment Act 1955.

Its president, Tan Sri Soh Thian Lai, said many small- and medium-scale enterprises (SMEs) were not ready for the amendments based on survey findings.

“Previously, we had proposed for the ministry to defer the implementation for a year. However, the minister (Datuk Seri M. Saravanan) announced that the deferment was only until December, for only four months.

“We are taking into account SMEs that are not prepare and we might request the ministry to further postpone it for another 12 months.

“It means that (the government should consider implementing the amended Employment Act) by January 2024,” he said at a press briefing of the FMM-Malaysian Institute of Economic Research Business Conditions Survey for the first half of 2022 today.

Soh said this in response to a question on whether the industry would request for another postponement to the amended law.

On Aug 26, Saravanan announced the deferment of the implementation of the amended Employment Act 1955 from Sept 1, 2022, to Jan 1, 2023.

He said the decision was made following discussions with industry players and stakeholders, including chambers of commerce.

Among key amendments include the extension of maternity leave allocations from 60 days to 98 days, reduced weekly working hours from 48 hours to 45, and a seven-day paternity leave for married male employees.