Human resources minister Saravanan Murugan said the cabinet had unanimously agreed to defer the implementation of the amended Employment Act 1955 originally scheduled for September 1, to January next year.

Several new measures originally slated for September 1 this year, including the increase in the salary threshold for overtime pay entitlement from RM2,000 a month to RM4,000, reduction of weekly working hours from 48 to 45, longer maternity leave from 60 to 98 days plus seven days of paternity leave, and the Flexible Working Arrangements (FWA), have all been postponed to next year following the government’s decision to defer the implementation of the amended Employment Act.

There have been polarized reactions from the public. While the employers largely welcome the government’s decision, the employees beg to differ.

Malaysian Employers Federation (MEF) president Syed Hussain Syed Husman thanked the government for the deferment, saying it will give the employers ample time to revitalize their businesses after the pandemic.

The Electrical Industry Workers’ Union (EIWU), meanwhile, regretted that the minister had not consulted trade union representatives, including MTUC, before announcing the deferment.

The attitudes of employers and employees towards the Employment (Amendment) Act have remained highly polarized since the very start, with the employers strongly resisting it and employees welcoming. Employers feel that the amended Act will further increase their burden while the employees insist it protects their rights.

While striving to advance the rights of employees, it is imperative for the government to also take into account the country’s overall economic conditions as well as local business operations, to ensure the economy’s healthy development so that both the employers and employees can benefit from it.

There is no denying that the amended Act is more favorable to the employees than their employers, as it provides more protection and perks.

To be very honest, employees have chronically been disadvantaged and they do need the amended law to safeguard their rights.

As a matter of fact, the employers should jump out of the box and look at this matter from a more farsighted and macroscopic perspective.

It is not always a bad thing to provide the employees with better welfare and protection. It is a manifestation of civility for the working class to be entitled to better protection and reasonable rights. A fair and just society is not one that blindly pursues profitability at the expense of the rights of any party.

Indeed, the workers’ rights need to be protected. The question now is: is it the right time now?

Malaysia’s economy has for the past two to three years been badly impacted by the pandemic, complicated further by the war in eastern Europe. Even though there are feeble signs of improvement of late, future prospects remain shaky.

The pandemic has indeed slowed in recent months while most countries have reopened their borders, but no one can assure us that we won’t have a new variant soon, or that the virus will not stage a rebound.

In the meantime, there is no sign the war between Russia and Ukraine will end any time soon, with both warring sides stubbornly uncompromising.

Given such uncertainties, taxing the employers to improve the employees’ welfare is bound to meet with some resistance from the former.

Their concerns are not wholly unfounded. As MEF’s Syed Hussain has said, the amended Act will exacerbate the employers’ financial burden. For instance, reducing the number of working hours per week from 48 to 45 will cost the industry RM26.88 billion more a year, and another RM2.97 billion for expanded maternity leave from 60 to 98 days.

In other words, employers must be prepared to tackle such drastic increase in their operating expenses.

Additionally, some employers have also mentioned the difficulty in implementing the flexible working arrangement policy.

While striving to advance the rights of employees, it is imperative for the government to also take into account the country’s overall economic conditions as well as local business operations, to ensure the economy’s healthy development so that both the employers and employees get to benefit from it.

Most importantly, we must improve the country’s productivity and put ourselves in the league of developed nations for everybody to share the fruit of prosperity.