Flexible Work Arrangements Under Employment Act 1955: HR Compliance Guide
How to implement FWA policies in compliance with Malaysian labor law
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Under Section 60P of Employment Act 1955, all employees can formally request Flexible Working Arrangements (FWA) covering: working hours, working days, or work location. Employers must respond within 60 days with written reasons if rejecting. FWA is a right to request, not automatic entitlement.
This guide covers everything Malaysian employers need to know about implementing Flexible Working Arrangements under the Employment Act 1955 amendments.
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Frequently Asked Questions
What are Flexible Working Arrangements (FWA) under Employment Act 1955?
FWA under Section 60P of Employment Act 1955 allows employees to formally request changes to: working hours (flexitime), working days (compressed week), or place of work (remote/hybrid). This provides a legal framework for work flexibility discussions.
Who can request Flexible Working Arrangements?
Any employee covered under Employment Act 1955 can request FWA. Since amendments removed the salary cap, this now includes all employees in Peninsular Malaysia and Labuan. There is no minimum service period requirement to make a request.
How should employees submit FWA requests?
Employees must submit written FWA request to employer specifying: type of flexibility requested, proposed start date, reason for request, and expected impact on work. No prescribed form, but employers may provide standard template.
What is the employer response timeline for FWA?
Employers must respond to FWA requests within 60 days of receiving the written application. Response must be in writing. If rejecting, employer must state reasons for refusal. No response within 60 days may be treated as deemed approval.
Can employers reject FWA requests?
Yes, FWA is a right to request, not an automatic entitlement. Employers can reject based on: operational requirements, cost implications, inability to reorganize work, detrimental impact on performance, or insufficient work during proposed hours.
What reasons justify FWA rejection?
Valid rejection reasons: burden of additional costs, detrimental effect on ability to meet customer demand, inability to reorganize work among existing staff, detrimental impact on quality or performance, insufficiency of work during periods proposed.
Can employees appeal FWA rejection?
The Employment Act does not provide formal appeal process for FWA rejection. However, employees may: request reconsideration with modified proposal, seek mediation through Labour Department, or negotiate through collective bargaining if applicable.
What types of FWA can be requested?
Three categories: 1) Flexible hours - varying start/end times, compressed workweek, 2) Flexible days - different working days, part-time arrangements, 3) Flexible location - remote work, hybrid arrangements, work from satellite office.
How should employers implement FWA policy?
Best practices: 1) Create written FWA policy with clear criteria, 2) Design standard application form, 3) Establish review process with timeline, 4) Document all decisions with reasons, 5) Include trial period for approved arrangements, 6) Define performance expectations.
Does FWA affect employee entitlements?
Core entitlements (annual leave, sick leave, public holidays) remain unchanged for FWA employees. Pro-rata adjustments may apply for reduced hours. Overtime calculations based on actual arrangement. Benefits terms should be clarified in FWA agreement.