What challenges do employers face in complying with Act 446?

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Employers Face Significant Challenges in Complying with Act 446

Employers are encountering substantial difficulties in meeting the requirements of Act 446, primarily due to the financial strain of business recovery post-pandemic and the associated costs of providing compliant accommodation. This has resulted in a widespread failure to adhere to the Act's provisions.
Financial Strain Hinders Compliance Efforts

Many employers are currently focused on reviving their businesses after the economic impact of the Covid-19 pandemic. The additional financial burden required to meet the housing and amenities standards stipulated by Act 446 presents a significant obstacle, making it difficult for them to allocate the necessary funds for compliance.
Widespread Non-Compliance Among Employers

The challenges faced by employers have led to a substantial number of businesses failing to comply with Act 446 since its implementation. It is estimated that approximately 70 percent of employers have not yet met the Act's requirements, highlighting the pervasive nature of these compliance issues across the employer landscape.
Delayed Enforcement Provides Necessary Breathing Room

In response to these difficulties, the government has agreed to relax the enforcement of Act 446 until December 2021. This decision, welcomed by employer groups like the Malaysian Employers Federation (MEF), grants businesses more time to provide safe and suitable accommodation for their employees, both local and foreign, and to ensure their vaccination status.

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What challenges do employers face in complying with Act 446?

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