Business groups say flexible working arrangements aren’t practical for all. Here’s why

Under a new amendment to the Employment Act 1955, employees will soon be able to apply for Flexible Working Arrangements (FWA) at their workplace. The amendment will go into force on 1 September—but SME (Small and Medium Enterprises) Association of Malaysia president Ding Hong Sing says that FWA is not a practical move for everyone.

According to Ding, most SMEs rely on production output and that flexi-work arrangements may only be suitable for certain industries like IT and marketing. He continued by saying that Malaysia is currently facing a serious shortage of workers—especially involving foreign workers—and the implementation of work flexibility would further affect production capabilities.

Supporting Ding’s concerns, Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) council member Gan Boon Khim said the FWA policy should be on a need basis. He stated that employees “must provide reasons when applying for flexible working hours, and the company can then assess the application and its decision should be final”.

“With the recent increase in workers’ minimum wages, reduction of working hours from 48 to 45 hours, and the number of public holidays in the country, we need to ensure that the FWA will not add to the burden of the company and employers,” added Gan.

The FWA-related amendment was passed by both houses of Parliament back in March, and received royal accent in April. Those applying for the arrangement must make it in writing to the employer, covering things like changes in working hours, working days, and place of work. When the application is submitted, the employer has to either agree or reject it within 60 days in writing and if the application is rejected, they must state the reasons why. 

In September, the amendment will also reduce the maximum number of working hours per week from 48 hours to 45 hours, and increase the length of maternity leave from 60 days to 98 days. Additionally, it will also introduce seven days of paternity leave for married male employees. 

As for penalties if employers violate the act, fines currently capped at RM10,000 will be increased to RM50,000 while fines capped at RM50,000 for certain violations will be raised to RM100,000. Flexible working arrangements could help the terrible daily traffic jams, as it’s even reportedly worse than pre-pandemic times.

FWA can even help with mental health, reducing work-related stress and giving more job opportunities in economically disadvantaged areas. so, if your work arrangements allow you to work from home and have FWAs, you have the right to ask for it.

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