Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q4 2023 Global Guide Quarterly

New Requirements for Trade Unions

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner and Head of Employment, and Teng Wei Hun, Senior Associate – Skrine

New amendments to the Trade Unions Act 1959 were enacted in October 2023. These amendments aimed at easing the restrictions for union formation include:

• Allowing trade unions to be established across trade, occupation or industry;
• Empowering the Director General of Trade Unions (DG) to require information or documents regarding registered trade unions for purposes of maintaining a trade union register;
• Allowing the formation of multiple trade unions within the same establishment, trade, occupation or industry;
• Requiring the DG to inform a trade union in writing of any refusal to register the trade union, including the grounds for refusal;
• Limiting the grounds on which the DG may cancel or withdraw the registration certificate of a trade union;
• Removing the power of the DG to suspend a branch of a trade union;
• Lowering the number of trade union member votes required in a secret ballot for a proposed strike or lock-out; and
• Prohibiting restriction of membership in a trade union to those of a particular race, religion or nationality.

The effective date of the amendments have yet to be announced.

Employment Related Implications of 2024 Budget

New Legislation Enacted

Authors: Selvamalar Alagaratnam, Partner and Head of Employment, and Teng Wei Hun, Senior Associate – Skrine

The newly enacted 2024 Budget, known as the “Supply Bill,” includes key employment-related provisions, including:

• Extending to Financial Year 2028 the income tax exemption on employment income for women returning to work after a career break;
• A special income tax rate of 15% for three consecutive years will be granted to a maximum of three non-citizen individuals in key or C-suite positions who earn a monthly salary of at least RM 35,000, in a new company approved for the Global Services Hub tax incentive;
• An increase in the monthly wage ceiling for Social Security Organization (SOCSO) contributions from RM 5,000 to RM 6,000;
• A monthly incentive of up to RM 1,500, for up to six months to be given by SOCSO to employers who hire individuals from vulnerable groups, such as disabled people, ex-convicts and senior citizens;
• Various measures aimed at upskilling and training, including an allocation of RM 6.8 billion for technical and vocational education and training.