KUALA LUMPUR – Malaysia’s Ministry of Human Resources continues to champion new work models by encouraging companies to explore flexible working arrangements (FWA) for their employees.

HR Minister Steven Sim sees hope in the wider adoption of FWA across the country. He cited an increase in the number of organisations participating in TalentCorp’s workshops for employers interested in flexible work options.

More employers in Malaysia considering flexible work

“Many companies actually come up to us and say they want to implement the policy but are unsure of how to go about it, and are worried they will be in breach of employment laws,” Sim told local media.

Nearly 3,000 businesses – each employing over 50,000 workers – have undergone TalentCorp’s programme for initiating FWAs. The companies span Penang, the Klang Valley, and Johor Bahru, Free Malaysia Today reported.

TalentCorp, the agency which aligns workforce development initiatives with the country’s economic agenda, will also evaluate the key takeaways of companies that will adopt FWAs in the next six months. The study will determine the challenges, opportunities, solutions and next steps towards greater work flexibility.

The HR Ministry has been doubling down on its support for flexible work, with Sim promoting FWAs as a way for employers to attract talent, boost productivity, cut back on costs, and foster a positive work culture. Other benefits he cited include a decongestion of city streets during rush hours and better work-life balance for workers.

The Ministry has also outlined the objectives, processes, procedures and scope of FWA programmes and is calling on employers to test the suitability of certain jobs or roles to flexible work opportunities.

Earlier this year, Sim highlighted options for flexibility in where, when and how Malaysians choose to work. This leeway is provided for in Sections 60P and 60Q of the country’s Employment Act (EA) 1955.

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Negotiating flexible work arrangements in Malaysia

Employers are required to respond to workers’ FWA requests within 60 days of receipt and provide reasons for rejecting such requests in case a flexible setup is not feasible.

“Most employers have begun to accept ad hoc written applications made by their employees in exercise of their duty under Section 60Q(2),” said Sara Lau, a partner at the Employment Law Practice of Skrine, one of the largest law firms in Malaysia.

“Prior to the amendments, FWAs were not regulated in Malaysia and were purely a matter of contract between the employer and employee,” Lau said.

Employees, however, shouldn’t expect their companies to approve their requests with leniency.

“The EA does not compel an employer to approve a FWA application, but only to consider such an application,” Lau said. “Hence, it appears that employers still retain full prerogative in deciding whether to allow FWA in their business notwithstanding the statutory right of application provided for under the EA.”

Still, the HR Ministry is urging employers to adopt flexible work options proactively.

“While there is no legal mandate requiring employers to allow flexible work requests, employers can negotiate flexible arrangements with employees,” advise Trent Sutton and Isha Malhotra of the employment law firm Littler.

“Navigating the legal landscape of flexible work arrangements requires careful consideration of various legal considerations, including employment laws, contractual agreements, data protection, health and safety regulations, intellectual property rights, compliance with working time regulations, tax and employment benefits, and dispute resolution mechanisms.”