LETTER | Sabah Labour Ordinance amendments a long-awaited leap

LETTER | The Sabah Labour Ordinance (Amendment) Bill 2024 marks a monumental step forward for the Malaysian labour landscape, particularly in Sabah.

This historic amendment, only the second since 1965, is not just a bureaucratic update but a long-overdue overhaul aimed at aligning Sabah’s labour laws with international standards and the Employment Act 1955.

It signifies a commitment to enhancing worker protection and modernising labour regulations, which are crucial for both domestic welfare and international competitiveness.

For nearly two decades, workers and employers in Sabah have operated under a framework that lagged behind contemporary labour practices and international benchmarks.

The last amendment in 2005 was a step in the right direction, but the rapid evolution of the global labour market necessitated more comprehensive reforms.

The 2024 amendments are, therefore, a welcome advancement that addresses critical aspects of worker rights and employer responsibilities.

Recognising dignity, professionalism

One of the key features of the amendments is the modernisation of terminology, replacing outdated terms such as “worker” with “employee” and “domestic servants” with “domestic employees”.

This change reflects a broader shift towards recognising the dignity and professionalism of all workers.

Additionally, the introduction of expanded definitions for terms like “apprentice” and “construction contractor” and the modification of apprenticeship contract durations signify a more inclusive and flexible approach to employment.

The amendments also make significant strides in improving work-life balance and worker welfare. The reduction of maximum weekly working hours from 48 to 45, the increase in maternity leave from 60 to 98 days, and the introduction of seven days of paternity leave are major enhancements that align Sabah’s labour laws with international best practices.

These changes not only support the health and well-being of employees but also contribute to higher productivity and job satisfaction.

Protecting young workers is another crucial aspect of the amendments. The new regulations prohibit children and young persons from engaging in hazardous work, with exceptions for apprenticeships and vocational training.

This move ensures that young workers are given the opportunity to learn and grow in a safe environment, laying a strong foundation for their future careers. The changes in permissible working hours for young persons further emphasise the importance of balancing work and education.

In terms of wages and holidays, the amendments allow for the flexibility of weekly or monthly wage payments and add Malaysia Day as a public holiday.

These provisions not only make wage management more convenient for both employers and employees but also foster a sense of national unity and pride.

Harmony, consistency, fairness

The overarching goal of these amendments is to harmonise the rights and protections of workers in Sabah with those in Peninsular Malaysia, ensuring consistency and fairness across the nation.

By aligning with international labour standards, particularly those of the International Labour Organisation, Malaysia enhances its image as a country committed to upholding fundamental worker rights.

This alignment is not merely a legal formality but a strategic move to attract more foreign investors, who often prioritise robust and transparent labour laws when considering new markets.

While the 2024 amendments are a significant milestone, they should not be seen as the final destination. The labour market is dynamic, and laws must evolve to keep pace with changing realities.

Therefore, these amendments must be not only implemented swiftly but also reviewed regularly. A structured and frequent review process will ensure that the laws remain effective and relevant, addressing any emerging issues promptly.

The amendments should be evaluated periodically to assess their impact on worker welfare and business operations. This continuous evaluation will help identify areas for further improvement, ensuring that the laws are not only up-to-date but also effectively enforced.

Regular reviews will also demonstrate Malaysia’s commitment to maintaining high labour standards, further enhancing its international reputation.

Striding towards equality

As the amendments are tabled in Parliament, there is a hopeful anticipation that they will be enacted without delay. Their swift implementation will be a testament to Malaysia’s dedication to protecting its workforce and fostering a fair and competitive labour market.

The Sabah Labour Ordinance (Amendment) Act 2024 is a significant stride towards equality with the Employment Act 1955, promising positive changes that will resonate throughout the Malaysian labour landscape.

In conclusion, the 2024 amendments are a much-needed and long-awaited reform that addresses the evolving needs of the labour market. By committing to regular reviews and evaluations, Malaysia can ensure that its labour laws remain robust and effective, providing a safe and fair environment for all workers.

This proactive approach will not only protect workers' rights but also attract investment and drive economic growth, benefiting the nation as a whole.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.