Settings to Check on Worksy to Ensure Its Compliance with The Revised Employment Act (1st Sept 2022)

Modified on Thu, 8 Sep, 2022 at 3:32 PM

Current Update :

The enforcement of the labor law amendments has been postponed to January 1, 2023.

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The bill for the amendment of the Employment Act 1955 has been passed by Dewan Rakyat after its second reading. However, the Bill is not in force yet as it still has to go through Senate approval and obtain royal assent.

Whatever the outcome may be, we will know for sure on 1st September 2022.

With that said, the current Worksy system settings allow you to enforce/ practice new amendments if it comes into force from September 1st onwards without any interruption.

Here are the settings in Worksy that may need to be updated to comply with the new legislation:

1) Work hours have been reduced from 48 hours to 45 hours per week.

You may maintain or change the working hours under the shift settings if you find that the current settings show that employees have more than 45 hours per week.

You will also need to make sure that the schedules you have assigned to employees do not exceed more than 45 hours per week.

But for the shift workers, the total 45 hours should not exceed the average total working hours of three (3) weeks.

Ex :

Total working hours over 3 weeks: 45 hours + 45 hours + 45 hours = 135 hours.
Average working hours per week: 135 hours/ 3 weeks = 45 hours.

Settings that you may need to check on:

Settings > Attendance > Shift > Full Day Working Hours
Settings > Attendance > Schedule > Work Schedule
Attendance > Individual / Daily Attendance

2) Paternity leave increased to seven (7) days

You may set up/ change the leave type for Paternity Leave to seven (7) days for married males/ men under the criterion settings. You may also set the 'minimum number of days required for leave type' to seven (7) to ensure that employees who apply for paternity leave is given seven (7) consecutive days and not lesser.

Settings that you may need to check on:

Settings > Leave > Leave Type > Paternity Leave > Entitlement Table
Settings > Leave > Leave Type > Paternity Leave > Minimum Days Required for a Leave Request
Settings > Leave > Leave Type > Entitled Employees

3) Maternity Leave increased from 60 to 98 days

You may set up/ change the leave type for Maternity Leave to be 98 days for married females/ women under the criterion settings. You may also set the 'minimum number of days required for leave type' to be 98 days to ensure that employees who apply for maternity leave is given 98 consecutive days and not lesser.

Settings that you may need to check on:

Settings > Leave > Leave Type > Maternity Leave > Entitlement Table
Settings > Leave > Leave Type > Maternity Leave > Minimum Days Required for a Leave Request
Settings > Leave > Leave Type > Entitled Employees

4) Calculation of wages for an incomplete month’s work

The formula that has been updated in the labor law amendment can be set under Worksy's payroll policy by selecting a calendar month as a base to calculate wages for an incomplete month of work.

Settings that you may need to check on:

Settings > Payroll > Payroll Policy > General Settings > Salary

5) Overtime pay regardless of salary (More than RM2,000 but less than RM4,000)

You may change the minimum wage that is entitled to overtime pay under Worksy's payroll policy settings.

Since the bill for labor amendments does not state the minimum wages for overtime, you may change the wages anytime in the payroll policy if it were to be confirmed on 1st Sept 2022.

Settings that you may need to check on:

Settings > Payroll > Payroll Policy > Overtime > Entitle Overtime if Salary is not more than