Amendments to the Employment Act

FFM Group of Companies

Disclaimer:
The contents of this presentation include materials which may be capable of being interpreted as forward-looking statements. Such statements
are merely estimates and targets, based on circumstances and reasonable assumptions which apply only at the date of such statements.
Accordingly, no reliance should be placed on any forward-looking statements, express or implied, contained in this presentation.
 Table of Contents
1. AMENDMENTS TO THE FIRST SCHEDULE

2. CALCULATION OF WAGES

3. EMPLOYMENT OF WOMEN / MATERNITY

4. EMPLOYMENT OF FOREIGN WORKERS / TERMINATION OF EMPLOYMENT OF FOREIGN WORKERS

5. SICK LEAVE

6. PATERNITY LEAVE

7. FLEXIBLE WORKING ARRANGEMENT

8. SEXUAL HARASSMENT

9. DISCRIMINATION

10. HOURS OF WORK

11. FREQUENTLY ASKED QUESTIONS - FAQ

 AMENDMENTS TO THE FIRST SCHEDULE
EMPLOYMENT ACT PROVISION
FIRST SCHEDULE
CURRENT PROVISION
Any person, irrespective of his
occupation, who has entered
into a contract of service with
an employer under which such
person’s wages do not exceed
two thousand ringgit a month.
AMENDED PROVISION
1. Any person who has entered into a contract of
service.
1A. Notwithstanding paragraph 1, the person
whose wages exceeds four thousand ringgit a
month…
Provision of the Act not applicable
AMENDMENT EFFECT
The provisions of the Employment Act will be applicable to all
employees regardless of salary.
Employees earning RM4000 and below per month will now be
entitled to receive rest day pay, overtime, payment for work done
on rest days and public holidays, and termination, lay off and
retirement benefits as prescribed in the Act.

Provision Detail
60(3) Rest day pay
69A(3) Pay for work done beyond normal hours
of work (normal OT)

60C(2A) Regulations on entitlement of allowance

during shift work

60D(3) Pay for work done during Public Holidays

60D(4) Pay for work done during public holiday

falls on a half working day

60J Termination, lay off and retirement

benefits
 Calculation of Wages
CURRENT PROVISION AMENDED PROVISION AMENDMENT EFFECT
18A Calculation of wages for work done in an incomplete month. The formula to calculate wages for work done in an
Notwithstanding section 60i, an employee who is employed on a incomplete month is as follows:
monthly rate of pay and has not completed a whole month of service
— Monthly wages x No of days
(a) where he commenced employment after the first day of the
month; No of days for worked
(b) where his employment was terminated before the end of the wage period
month;
None (c) where he took leave of absence without pay for one or more days
of the month; or
(d) where he took leave of absence by reason of having been called
up for national service under the National Service Act 1952 [Act 425],
to present himself for national service training as required under the
National Service Training Act 2003 [Act 628] or to comply with any
other written law relating to national service, shall be paid wages due
to him for that month calculated according to the following formula:

Monthly wages x No of days

No of days for worked
wage period
EMPLOYMENT OF WOMEN / MATERNITY
EMPLOYMENT OF FOREIGN EMPLOYEES
TERMINATION OF FOREIGN EMPLOYEES
 SICK LEAVE
EMPLOYMENT ACT PROVISIONS
69F Sick Leave
CURRENT PROVISION AMENDED PROVISION AMENDMENT EFFECT
Provided that the total number of days of First proviso deleted “Sick Leave” entitlement taken will no
paid sick leave in a calendar year which an longer be deducted from “Hospitalization
employee is entitled to under this section Leave” aggregate entitlement.
shall be sixty days in the aggregate;
Example for the Group:
And provided further that if an employee is Provided that if an employee is certified by
certified by such registered medical such registered medical practitioner or Years of Sick Hosp Total
practitioner or medical officer to be ill medical officer to be ill enough to need to Service Leave Leave Entitlement
enough to need to be hospitalized but is not be hospitalized but is not hospitalized for
hospitalized for any reason whatsoever, the any reason whatsoever, the employee shall 1-2 14 90 104
employee shall be deemed to be be deemed to be hospitalized for the
hospitalized for the purposes of this section purposes of this section 3-5 18 90 108

6-10 22 90 112

11 > 26 90 116
 PATERNITY LEAVE
NEW PROVISION PROVISION EFFECT
60FA Paternity Leave

Subject to subsection (3), a married male employee shall be entitled to a

Paternity Leave benefit to be revised at Group level to be
paid paternity leave at his ordinary rate of pay for a period of seven increased to seven (7) consecutive days.
consecutive days in respect of each confinement.

The paternity leave under subsection (1) shall be restricted to five

Paternity Leave benefit to be extended to all male
confinements irrespective of the number of spouses. employee with legal child.
A married male employee shall be entitled to paternity leave from his
employer if—

(a) he has been employed by the same employer at least twelve months
immediately before the commencement of such paternity leave; and

(b) he has notified his employer of the pregnancy of his spouse at least
thirty days from the expected confinement or as early as possible after the
birth.
 FLEXIBLE WORKING ARRANGEMENT
NEW PROVISION PROVISION EFFECT
60P FLEXIBLE WORKING ARRANGEMENT

Subject to Part XII or anything contained in the contract of service, an employee may
Companies will be guided by the Group’s flexible work
apply to an employer for a flexible working arrangement to vary the hours of work, days hours guideline.
of work or place of work in relation to his employment.

Where there is a collective agreement, any application made by the employee under
subsection (1) shall be consistent with the terms and conditions in the collective
agreement.

60Q APPLICATION FOR FLEXIBLE WORKING ARRANGEMENT

The employee shall make an application for flexible working arrangement under section
60P in writing and in the form and manner as may be determined by the Director
General

Upon the application made under subsection 1 an employer shall, within sixty days
from the date such application is received, approve or refuse the application

The employer shall inform the employee in writing of the employer’s approval or
refusal of the application under subsection 1 and in the case of a refusal, the employer
shall state the ground of such refusal.
SEXUAL HARASSMENT
 DISCRIMINATION IN EMPLOYMENT
NEW PROVISION PROVISION EFFECT
69F Discrimination in Employment

1. The Director General may inquire into and decide any dispute
Complaints relating to discrimination will now be legally
between an employee and his employer in respect of any matter actionable.
relating to discrimination in employment, and the Director General
may, pursuant to such decision, make an order. Provisions only applies to individuals already employed by
2. An employer who fails to comply with any order of the Director the Company, not potential candidates.
General issued under subsection (1) commits an offence and shall, on
conviction, be liable to a fine not exceeding fifty thousand ringgit;
and shall also, in the case of a continuing offence, be liable to a daily
fine not exceeding one thousand ringgit for each day the offence
continues after conviction.
 HOURS OF WORK
EMPLOYMENT ACT PROVISION
60A HOURS OF WORK

1. Except as hereinafter provided, an employee shall not be required under his contract of service to work—

(a) more than five consecutive hours without a period of leisure of not less than thirty minutes duration;
(b) more than eight hours in one day;
(c) in excess of a spread over period of ten hours in one day;
(d) more than forty-five hours in one week.

60C SHIFT WORK

2. Notwithstanding paragraphs 60A(1)(b), (c) and (d), but subject to paragraph (1)(a) thereof, an employee who is engaged
under his contract of service in shift work may be required by his employer to work more than eight hours in any one day
or more than forty-five hours in any one week but the average number of hours worked over any period of three weeks,
or over any period exceeding three weeks as may be approved by the Director General, shall not exceed forty-five per
week.

NOTE: No changes in overtime calculations, ordinary rate of pay calculations and other work hours provisions apart from
change from 48 hours per week to 45 hours per week exclusive of lunch hour.
 HOURS OF WORK
EMPLOYMENT ACT PROVISION
EXAMPLE FOR SHIFT EMPLOYEES

Work schedules for shift work employees will have to be revised so work done in a 3 week period is to an
average of 45 hours. Example will be as follows:

WEEK 1 WEEK 2 WEEK 3

The table indicates a work
MONDAY 12 12 12 schedule compliant to the
TUESDAY 12 12 3 amendments, being:
WEDNESDAY 12 12 -
i. Total work hours for 3
THURSDAY 12 12 - weeks = 60 hours + 60
FRIDAY 12 12 - hours + 15 hours = 135
hours
SATURDAY - - -
ii. Average working hours
SUNDAY - - - per week = 135 hours / 3
TOTAL HOURS 60 60 15 weeks = 45 hours
 HOURS OF WORK
PROPOSAL (1/7)

NON SHIFT EMPLOYEES, 5 DAY WORK WEEK

No change as total hours of work (40 hours) already complies with the amendments.

NON SHIFT EMPLOYEES, 6 DAY WORK WEEK

Work schedules for employees working an 8-hour, 6-day week must be revised to 7.5 hours
per day work to comply with 45 hours per week. This can be attained by:

1. Extending break hours by 0.5 hours; or

2. Reducing work hours
 HOURS OF WORK
PROPOSAL (2/7)

FFM BERHAD
COMPANY EMPLOYEE TYPE CURRENT PROPOSED

Kart Food Industries Sdn Bhd / Shift Employees under EA 6 day work week; 6 day work week;
FFM Further Processing Sdn Bhd 8 hours work; 7.5 hours work;
Total 48 hours per week total 45 hours per week.

FFM Berhad Shift Employees under EA 6 day work week; 6 day work week;
8 hours shift work; 7.5 hours work;
average 48 hours work week total average 45 hours per week.
 HOURS OF WORK
PROPOSAL (3/7)

FFM BERHAD
COMPANY EMPLOYEE TYPE CURRENT PROPOSED
The Italian Baker Sdn Bhd Non-Shift Employees under EA 6 day work week; 6 day work week;
8 hours work; 7.5 hours work;
total 48 hours per week. total 45 hours per week

Shift Employees under EA 6 day work week; 6 day work week;

8 hours shift; 7.5 hours shift;
total average 48 hours per week average 45 hours per week

FFM Farms Non-Shift Employees under EA 6 day work week; 6 day work week;
8 hours work; 7.5 hours work;
total 48 hours per week total 45 hours per week.

PROPOSAL (4/7)
FFM BERHAD
COMPANY
Friendship Trading Sdn Bhd
FFM Pulau Indah Sdn Bhd
Johor Bahru Flour Mill Sdn Bhd
HOURS OF WORK
EMPLOYEE TYPE
Non-Shift Employees under EA
Shift Employees under EA
Shift Employees under EA
Non-Shift Employees under EA
CURRENT PROPOSED
6 day work week; 6 day work week;
8 hours work; 7.5 hours work;
total 48 hours per week total 45 hours per week
6 day work week; 6 day work week;
8 hours shift work; total 7.5 hours shift work;
average 48 hours work week average 45 hours work week
6 day work week; 6 day work week;
total 8 hours shift work; total 7.5 hours shift work; average 45
average 48 hours work week hours work week
6 day work week; 5.5 day work week;
8 hours work; 8 hours work (5 days), 5 hour work
total 48 hours per week. (0.5 day);
total 45 hours per week.
 HOURS OF WORK
PROPOSAL (5/7)

FFM BERHAD
COMPANY EMPLOYEE TYPE CURRENT PROPOSED
FFM Grains & Mills Sdn Bhd Shift Employees under EA 6 day work week; 6 day work week;
8 hours shift work; 7.5 hours work;
Total average 48 hours per week total average 45 hours per week.

5.5 day work week; 5.5 day work week;

8 hours work;
Total average 48 hours per week
6 day work week;
8 hours shift work;
average 48 hours work week
8 hours work (5 days), 5 hour
work (0.5 day);
total 45 hours per week.
6 day work week;
7.5 hours work;
average 45 hours per week.
 HOURS OF WORK
PROPOSAL (6/7)

FFM BERHAD
COMPANY EMPLOYEE TYPE CURRENT PROPOSED
FFM Feedmills (Sarawak) Sdn Shift Employees under EA 6 day work week; 6 day work week;
Bhd 8 hours shift work; 7.5 hours work;
Total average 48 hours per week total average 45 hours per week.

5.5 day work week; 5.5 day work week;

8 hours shift work; 8 hours shift work (5 days), 5
Total average 48 hours per week hour work (0.5 day);
total average 45 hours per week.

6 day work week; 6 day work week;

8 hours shift work; 7.5 hours work;
average 48 hours work week total average 45 hours per week.
 HOURS OF WORK
PROPOSAL (7/7)
FFM BERHAD

COMPANY EMPLOYEE TYPE CURRENT PROPOSED

FFM (Sabah) Sdn Bhd Shift Employees under EA 6 day work week; 6 day work week;
8 hours shift work; 7.5 hours work;
average 48 hours work week average 45 hours per week.

FFM Flour Mills (Sabah) Sdn Bhd Shift Employees under EA 6 day work week; 6 day work week;
8 hours shift work; 7.5 hours work;
average 48 hours work week total average 45 hours per week.
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