(HR Update) The Latest Flexible Working Arrangements (FWA) in Malaysia

Effective January 1, 2023, Sections 60P and 60Q of the Act pave the way for more adaptable work conditions to meet modern demands. Here’s what every employer and employee should know.

In today’s fast-paced world, work-life balance isn’t just a buzzword; it’s a necessity. Recognizing this, the 2023 amendment to Malaysia’s Employment Act 1955 introduced Flexible Working Arrangements (FWA), giving employees the power to reshape their work lives.

What is FWA?

Flexible Working Arrangements allow employees to request changes in:

Hours of Work: Adjust starting and ending times.
Days of Work: Shift to a 4-day workweek, for example.
Place of Work: Opt for remote or hybrid setups.

This provision doesn’t just benefit employees; it empowers businesses to enhance productivity and attract top talent by embracing flexibility.

How to Apply for FWA

The process is straightforward:

Employees must submit a written application with justifications, such as health needs or caregiving responsibilities.
Employers are required to respond within 60 days. If rejected, employers must provide written reasons.

What Employers Should Consider

While FWA applications aren’t automatically approved, businesses must exercise fairness and diligence. Key considerations include:

Establishing performance evaluation systems for employees under FWA.
Maintaining effective communication with remote or hybrid teams.
Clearly defining the duration of the FWA in the approval process.
Ensuring compliance with safety regulations for remote work setups.

Employers can withdraw FWA if business or operational needs demand, but proper documentation and transparent communication are crucial.

Why FWA Matters

The amendments aim to foster better work-life balance, reduce stress, and improve overall employee satisfaction. With the reduction of the workweek to 45 hours, Malaysian labor law aligns more closely with international standards, ensuring both employee welfare and productivity.

By understanding and implementing FWA effectively, businesses can stay ahead in a competitive landscape while meeting the evolving expectations of a modern workforce.

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