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THE amended Sabah Labour Ordinance and Sarawak Labour Ordinance officially came into force on May 1, 2025, with the exception of Section IVA concerning minimum standards for workers' housing, accommodation, and facilities, the Ministry of Human Resources (KESUMA) confirmed.
Human Resources Minister Steven Sim Chee Keong announced the enforcement date, which was gazetted on April 28, calling the amendments a landmark step in aligning labour laws nationwide.
“These amendments are significant as, for the first time since the formation of Malaysia, labour laws have been successfully standardised across Peninsular Malaysia, Sabah, and Sarawak,” the ministry said in a statement.
The standardisation involves three principal laws: the Employment Act 1955 \[Act 265], the Minimum Standards of Housing, Accommodation, and Facilities for Workers Act 1990 \[Act 446], and the Children and Young Persons (Employment) Act 1966 \[Act 350].
KESUMA said the amendments underscore the government's commitment to ensuring equitable labour rights and protections throughout the country.
“The amendments to both ordinances are aimed at fulfilling Malaysia’s obligations towards the compliance of the country's labour laws with international labour standards.
“It is specifically, the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work 1998, to improve Malaysia's image, thereby attracting more investors, especially from abroad,” the statement read.
Among the key changes are the expansion of protection to cover all employees, regardless of salary or occupation, lifting the previous RM2,500 monthly wage threshold.
Other major improvements include an increase in maternity leave from 60 days to 98 days, the introduction of seven days of paternity leave, and a reduction in the maximum workweek from 48 hours to 45 hours.
The revised ordinances also incorporate new protections on flexible working arrangements, workplace discrimination, forced labour, sexual harassment, and workers’ housing, drawing from the provisions of Act 446.
In conjunction with the legislative changes, KESUMA also announced the coming into force of additional legal instruments. These include two orders under the Sabah Labour Ordinance (Amendment) Act 2025—the Employment Order (Exemption) (Revocation) Order 2025 and the Employment Order (Amendment of First Schedule) Order 2025—as well as the Employment Order (Exemption) (Revocation) Order 2025 under the Sarawak Labour Ordinance (Amendment) Act 2025.
“KESUMA is confident that the amendments to both ordinances will have a significant positive impact on the welfare and rights of workers in Sabah and Sarawak, and will further enhance Malaysia’s international reputation,” the statement added. - May 2, 2025