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Malaysia

Working Hours and Overtime Regulations

Understand the laws governing work hours and overtime in Malaysia

Standard working hours

In Malaysia, the Employment Act 1955 (Act 342) governs standard working hours. The key regulations are as follows:

  • Weekly Limit: The maximum working hours per week is 45 hours, applicable to all employees covered under the Act. This came into effect on September 1, 2023, reducing the previous limit of 48 hours.
  • Daily Limit: An employee cannot work for more than 8 hours in a single day.
  • Spreadover Period: The total work period within a day, including breaks, cannot exceed 10 hours.

There are exceptions to these limits. The Ministry of Human Resources may grant exemptions under special circumstances critical for business continuity, upon written application by the employer.

Overtime

Overtime work refers to any hours worked beyond the standard working hours as defined by the Employment Act 1955 (Act 342) in Malaysia.

As of January 1, 2023, with the amendments to the Employment Act, all employees earning a monthly salary of RM4,000 (approx. USD 930) or less are entitled to overtime pay. The Employment (Limitation of Overtime Work) Regulations 1980 restricts the maximum overtime work allowed to 104 hours per month.

The minimum overtime pay rate is set at 1.5 times the employee's hourly rate of pay. This applies to overtime work on weekdays exceeding normal working hours. The hourly rate is derived by dividing the employee's monthly salary by the agreed-upon number of working hours per month.

There are increased rates for specific situations. Overtime work on rest days qualifies for a higher minimum rate of 2 times the employee's hourly rate. Working on public holidays comes with additional compensation. For working within normal working hours, employees are entitled to one additional day's wages at the ordinary rate on top of their basic pay. Overtime work on public holidays attracts a minimum rate of 3 times the employee's hourly rate.

Rest periods and breaks

In Malaysia, the Employment Act 1955 (Act 342) stipulates the entitlements to rest periods and breaks for workers.

Employees who work for more than 5 consecutive hours are entitled to an unpaid rest period of at least 30 minutes. For those engaged in continuous work requiring their constant presence and exceeding 8 consecutive hours, they are entitled to not less than 45 minutes of rest period in total, for both meal and rest breaks.

Every employee is entitled to one full rest day per week on a day designated by the employer. This does not apply to employees on maternity leave, sick leave, or temporary disability leave. For employees working shifts, any continuous period of not less than 30 hours constitutes a rest day.

There are exceptions to these rules. The Director General of Labour can authorize alternative rest days upon written application by the employer, provided the nature of the work necessitates continuous operations.

Night shift and weekend regulations

In Malaysia, the general framework for working hours is established by the Malaysian Employment Act 1955 (Act 342). However, there are specific regulations regarding night shifts and weekend work.

Regarding night shift work, the Act doesn't provide a specific definition. However, it empowers the Ministry of Human Resources to define working hours through regulations. While the Act doesn't mandate night shift allowances, it allows employers and employees to freely negotiate them within their employment contracts. It's also important to note that night shift work can disrupt sleep patterns and impact health. Employers have a general duty to ensure a safe working environment under the Occupational Safety and Health Act 1969 (Act 514). This might involve measures to mitigate health risks associated with night shifts.

As for weekend work, employees are entitled to one full rest day per week on a day designated by the employer. This rest day can fall on a weekend, but it's not mandated by law. Weekend work exceeding the standard working hours qualifies for overtime pay. The minimum rate is 1.5 times the employee's hourly rate for weekdays and 2 times the hourly rate for rest days.

There are exceptions for continuous operations. With written approval from the Director General of Labour, employers in certain industries requiring continuous operations can implement alternative rest day arrangements.

In conclusion, night shift and weekend work are legal in Malaysia, but specific regulations address various aspects. Employers should consult the relevant legislation and industry practices to ensure fair treatment of employees working these schedules.

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