How will salary thresholds affect worker protections under Act 265?

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Salary Thresholds Will Not Limit Worker Protections Under Act 265 Following Ministry Order

The Human Resources Ministry has announced that a ministerial order will be issued to ensure all workers, regardless of their salary, will receive the minimum benefits and protections stipulated under Act 265 of the Employment Act 1955. This measure is being implemented to amend the First Schedule of Act 265, which previously contained a salary threshold that could have excluded certain workers from these protections. A draft of this order has been prepared and is slated for enforcement concurrently with the commencement of the Employment (Amendment) Bill 2021.
Ministerial Order to Amend First Schedule

A ministerial order is being prepared to amend the First Schedule of Act 265. This amendment will ensure that the minimum benefits and protections outlined in the Act are extended to all workers across the country, effectively removing any salary-based limitations. This action stems from concerns that previous definitions within the First Schedule might have inadvertently excluded higher-earning employees from crucial entitlements.
Previous Salary Threshold and Its Implications

Previously, the definition of an employee under the First Schedule of Act 265 included a stipulation that an individual's wages must not exceed RM2,000 per month to be covered. This threshold raised concerns that workers earning above RM2,000 might not be eligible for newly enhanced provisions. Such provisions include an extended maternity leave of 98 days, paternity leave of seven days, and specific protections against pregnancy discrimination as outlined in Section 41A of the Act.
Enforcement Alongside Employment Act Amendments

The ministerial order to amend the First Schedule of Act 265 is being prepared for enforcement on the same date that the Employment (Amendment) Bill 2021 comes into effect. This coordinated timeline ensures that the expanded coverage and protections become effective simultaneously with the broader legislative changes to the Employment Act 1955. This approach aims to provide clarity and immediate applicability of the revised worker entitlements.

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How will salary thresholds affect worker protections under Act 265?

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