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THE Ministry of Human Resources (KESUMA) has called on private sector employers nationwide to actively consider implementing Flexible Working Arrangements (FWA) in line with their operational requirements, as a strategic response to the ongoing global energy crisis and current economic volatility.
The ministry highlighted that FWAs, introduced under amendments to the Employment Act 1955 [Act 265] and effective from 1 January 2023, provide comprehensive benefits for both employers and employees.
These include optimising resource utilisation while promoting staff welfare through improved work-life balance.
“Private sector employers are encouraged to assess the suitability of FWA within their organisations, using approaches such as working from home, flexible hours, shift rotations, or hybrid models,” the ministry said on Friday.
Under Sections 60P and 60Q of Act 265, employees are entitled to request flexible work arrangements, strengthening modern workplace practices that respond to contemporary operational demands.
“These provisions allow employees to apply for flexibility in working hours, working days, or workplace location, including working from home,” the ministry added.
The ministry emphasised that the implementation of FWAs should not lead to a reduction in statutory benefits, including overtime pay, rest day pay, holiday pay, annual leave, public holidays, or sick leave entitlements.
To support employers, the Ministry of Human Resources, through the Department of Labour Peninsular Malaysia (JTKSM) and Talent Corporation Malaysia Berhad (TalentCorp), provides guidance on FWA policy development, training, and the sharing of best practices to ensure effective and structured implementation. Employers can also access the 2024 FWA Implementation Guidelines, published by JTKSM, available online.
KESUMA urged private sector organisations to adopt FWAs proactively as a core strategy to strengthen organisational resilience, mitigate the impact of the energy crisis, and safeguard Malaysia’s economic growth amid global uncertainties.
Prime Minister Datuk Seri Anwar Ibrahim recently noted that the government is also considering additional measures for public sector employees, including the gradual introduction of work-from-home arrangements to maintain continuity of public services while adapting to contemporary work requirements.
The initiative has been welcomed by the Malaysian branch of the International Trade Union Confederation, UNI-MLC.
Secretary-General Mohd Effendy Abdul Ghani said that flexible work arrangements, including work-from-home options, would benefit both employees and employers by reducing costs and enhancing work-life balance.
However, Effendy cautioned that clear and comprehensive guidelines must accompany the introduction of such arrangements.
“Key considerations include defining suitable job scopes, establishing clear working hours, and safeguarding employees’ rights to be free from work-related interruptions outside of their official hours,” he said.
He further stressed the importance of addressing potential mental health risks arising from excessive workloads, pressure to remain constantly responsive, and the blurring of boundaries between work and personal life, which can lead to emotional exhaustion.
Effendy urged employers to ensure reasonable and ethical management of work, in line with principles of employee wellbeing.
He also highlighted that the burden of home office utilities, security, and equipment should not be unfairly transferred to employees.
“Workers must be provided with appropriate tools and resources to perform work-from-home tasks effectively. Flexible work arrangements must consider ergonomics, home safety, workload management, and rising mental health risks,” he added. - March 27, 2026
