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Under the Employment Act (1955), employees in Malaysia are entitled to request a negotiation around flexible working arrangements, including changing the hours, days, or location of their employment.
Beginning in 2020, there has been a marked increase in the number of Malaysian employees requesting hybrid or fully remote working arrangements. With remote work becoming an increasingly common feature within Malaysian employment agreements, employers need to be aware of their obligations under the law.
Employers should implement a comprehensive remote working policy that accounts for data privacy concerns and employee work environments.
Considering the coverage of the Social Security Organisation (SOCSO) was extended in 2021 to cover work from home situations, employers should take steps to ensure remote work environments are safe and healthy. Furthermore, the Occupational Safety and Health Act (1994) requires employers to ensure, so far as is practicable, the safety, health and welfare of their employees. It therefore makes good sense for employers to conduct checks on, or establish minimum standards for, their employees’ proposed work environments.
Remote working brings risks in terms of data privacy and cyber attack. To mitigate such risks, employers should consider imposing guidelines on cyber security such as forbidding employees from using personal devices for work.
Hire borderless talent with Horizons
Your business can easily hire employees in Malaysia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Malaysia can be considered a good country for remote work, primarily due to the legal protections around safe and healthy work environments.
Online freelancing platforms are used by freelancers in Malaysia, but do present certain risks to employers. To ensure compliance with Malaysia’s employment law, employers looking to hire remote workers in Malaysia are advised to utilize the services of Horizons’ Malaysia PEO.
