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The ministry emphasised that "employers cannot take action such as salary cuts or reductions in benefits against employees who implement WFH, unless there is a new agreement involving changes to overall working hours."
The Ministry of Human Resources Malaysia (KESUMA) has emphasised that flexible working arrangements (FWA) by the private sector must be implemented in an "orderly, phased manner and based on clear guidelines", and in line with the provisions of the Employment Act 1955 [Amendment] 2022 under sections 60P and 60Q.
According to MalayMail, citing Bernama, KESUMA reiterated in a statement that the FWA is not only limited to working from home (WFH) but also includes other forms of flexibility such as hybrid work models (combining work in the office and at home), flexible working hours and flexible work arrangements (compressed work weeks, shifts, and output-based work).
As cited in the news report, the ministry said: "KESUMA would like to emphasise that employers cannot take action such as salary cuts or reductions in benefits against employees who implement WFH, unless there is a new agreement involving changes to overall working hours."
It added that this guarantee was important "to ensure that the rights and welfare of employees continue to be protected and to give the workforce confidence to adapt to more flexible working arrangements."
According to KESUMA, further cited by MalayMail, TalentCorp’s latest findings since the FWA guidelines were implemented show that more than 3,000 organisations have adopted such arrangements, benefiting over 1.2mn employees.
The ministry said 62% of employers reported increased productivity when FWA was implemented in a structured manner, while 70% of employees reported higher job satisfaction due to greater time and location flexibility.
"More than 90% of organisations reported increased employee engagement and a decrease in employee turnover of between 15% and 20%," KESUMA was quoted as saying.
These findings, it added, demonstrate that FWAs not only support the continuity of organisational operations in challenging situations, but are also able to increase productivity, strengthen work-life balance and contribute to the retention of talent in the national labour market.
At the same time, KESUMA said it takes the psychosocial wellbeing issues that may arise from FWA and WFH seriously, including the risk of stress, work-life imbalance and social isolation as well as communication challenges.
In this regard, the ministry urged employers to ensure that FWA implementation is supported by clear work management, empathetic communication, reasonable working hours, and access to mental wellbeing support, such as counselling.
About the FWA guidelines
On 5 December 2024, KESUMA launched the FWA guidelines to support employers and employees alike on flexible work arrangements in Malaysia.
These arrangements (also known as Aturan Kerja Fleksibel or AKF) are to be carried out in line with the amendments made to the Employment Act 1955 in 2022, under sections 60P and 60Q, which grant employees the right to request FWA, while looking to provide employers a clear framework to decide if such arrangements can be done reasonably.
More details on the guidelines can be found in our coverage here.
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