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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Exemption of Levy

New Legislation Enacted

Authors: Sara Lau Der Yin, Partner and Sareeka Balakrishnan, Associate – Skrine

Under the Pembangunan Sumber Manusia Berhad (Exemption of Levy) (No. 2) Order 2021 (Order), any employer in the industries and carrying out activities listed in the Schedule of the Order to whom the Pembangunan Sumber Manusia Act 2001 applies, is exempt from paying a levy to the Human Resources Development Fund. The exemption is in force from June 1, 2021, to December 31, 2021, and applies to employers who have registered with the Pembangunan Sumber Manusia Berhad from March 1, 2021, to June 30, 2021.

COVID-19: Extension of Phase 1 Restrictions

New Legislation Enacted

Authors: Sara Lau Der Yin, Partner and Sareeka Balakrishnan, Associate – Skrine

Presently under the nationwide lockdown, Full Movement Control Order (FMCO), no economic sectors can operate, except essential economic and service sectors subject to the approval from the Ministry of International Trade and Industry (MITI). Work from home is allowed. The current Phase 1 FMCO that was implemented on June 1, 2021, was extended on June 29, 2021. The government will consider moving to Phase 2 when it meets specific metrics on daily COVID-19 cases and vaccination rates.

There are now 24 sectors listed as essential services. Based on FMCO SOPs, attendance at premise is only allowed for essential services at not more than 60% capacity at one time for both management and operational staff. Interdistrict and interstate travels are also prohibited, with certain exceptions. Business hours are limited to 8pm with certain exceptions. All businesses open for operations must comply with the SOPs issued by the National Security Council (NSC), and the sector-specific SOPs, where applicable. Employers are required to comply with any updated SOPs.

COVID-19 Restrictions and Mitigation Measures

Proposed Bill or Initiative

Authors: Sara Lau Der Yin, Partner and Sareeka Balakrishnan, Associate – Skrine

On June 15, 2021, the Prime Minister of Malaysia announced a National Recovery Plan (NRP) to transition out of the COVID-19 crisis. Under the four-phases of the NRP, the country will transition from one phase to another, based on metrics of daily COVID-19 cases and rate of vaccination. Phase 1 is for movement control, where only essential services can be provided, selected sectors can operate at limited capacity, and interstate travel will be restricted.

During Phase 2, economic activities will resume in stages, only listed selected sectors will operate, and social activities and interstate travel will still be prohibited. In Phase 3, all economic activities will be allowed to operate subject to strict SOPs and capacity limits, except activities that are at high risk for infections. In Phase 4, all economic sectors will be opened, with more social activities allowed including interstate travel and domestic tourism.

New COVID-19 Financial Aid Relief

Important Action by Regulatory Agency

Authors: Sara Lau Der Yin, Partner and Sareeka Balakrishnan, Associate – Skrine

On May 31, 2021, the government launched the Strategik Memperkasa Rakyat Dan Ekonomi Tambahan (Pemerkasa +), an additional COVID-19 financial relief package. Under Pemerkasa +, the application for Wage Subsidy Program is extended until July 31, 2021, for employers to receive cash subsidy for each applicable employee. Pemerkasa + also has various incentives, such as cash aid for lower income groups, relief for loan repayments, postponement of tax penalties, among other benefits.

COVID-19: The Pemulih Financial Aid Package

Important Action by Regulatory Agency

Authors: Sara Lau Der Yin, Partner and Sareeka Balakrishnan, Associate – Skrine

On June 28, 2021, the government launched a program known as “Pemulih,” which provides financial support for businesses and employers, individuals and households and additional vaccination support. Pemulih extends the Wage Subsidy Program to support up to 500 workers per employer with assistance of RM600 per worker for four months. There will be a payment for two months for all sectors in the Phase 2 of the National Recovery Plan (NRP), and a further payment for two months for the sectors categorized under the negative list in the Phase 3 of the NRP.

Unlike the previous wage subsidy programs, there are no salary limit conditions for the Wage Subsidy Program under Pemulih. Hence, employers may apply even if their employees earn more than RM4,000 a month. Additionally, this program will grant automatic exemption from paying a levy to the Human Resources Development Fund for qualifying employers.