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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Recovery Movement Control Order (RMCO)

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

The Prevention and Control of Infectious Diseases (Declaration of Infected Local Areas) (Extension of Operation) (No.6) Order 2020 was published on August 29, 2020, and extends the RMCO in Malaysia from September 1, 2020 to December 31, 2020.

Law on Workers’ Minimum Standards of Housing and Amenities

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

Under the Workers’ Minimum Standards of Housing and Amenities (Amendment) Act 2019, which became effective on September 1, 2020, employers from all sectors who provide accommodation to their employees must comply with various requirements, including: (1) obtaining a Certificate for Accommodation from the Director General of Labor Department Peninsular Malaysia; (2) ensuring that every accommodation provided for employees complies with minimum standards and that decent and adequate amenities are provided; and (3) collecting rental charges from an employee for the accommodation provided by the employer or any centralized accommodation provider. Additionally, various regulations to complement this law also are effective as of the same date.

RMCO Standard Operating Procedures

Precedential Decision by Judiciary or Regulatory Agency

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

All businesses open for operations must comply with the SOPs for the Recovery Movement Control Order (RMCO), issued by the National Security Council, and also the sector-specific SOPs where applicable.

Bill to Implement Temporary Measures to Reduce Impact of COVID-19

Proposed Bill or Initiative

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

Both the Dewan Rakyat (House of Representatives) and the Dewan Negara (Senate) approved the COVID-19 Bill. If it receives the royal assent, the Bill will remain in place for two years and modify various provisions impacting employment and industrial relations, to reduce the impact of the COVID-19 pandemic in Malaysia.

Kita Prihatin Initiative

Important Action by Regulatory Agency

Authors: Selvamalar Alagaratnam, Partner and Sareeka Balakrishnan, Associate – Skrine

Prime Minister Tan Sri Muhyiddin Yassin announced that the government will implement several initiatives and additional assistance under the RM10 billion Prihatin Supplementary Initiative Package (Kita Prihatin) in line with its efforts to boost economic recovery. Families and single Malaysians in the B40 group will receive RM1,000 and RM500 respectively, while those in the M40 group will receive RM600 and RM300, respectively. Based on the Department of Statistics of Malaysia in 2020, the B40 group consists of households earning below RM4,360. The M40 group refers to households earning between RM4,360 - RM9,619; and the T20 group refers to those earning more than RM9,619.

Under Wage Subsidy Programme 2.0, RM2.4 billion will be allocated to help companies that are still affected by the pandemic. This initiative will be implemented from October 1 to December 31, 2020 at a rate of RM600 per month for each employee up to a maximum of 200 employees. The government has agreed to reopen applications for PRIHATIN Special Grant commencing October 1 through October 31, to assist micro-entrepreneurs.