SIGNIFICANT AMENDMENTS TO THE SARAWAK LABOUR ORDINANCE

Effective 1 May 2025, the Sarawak Labour Ordinance (Amendment) Act 2025 introduces sweeping reforms aimed at aligning Sarawak’s labour framework with the Employment Act 1955 applicable in Peninsular Malaysia. These changes represent a critical shift towards national uniformity in employment standards and bolster protections for the Sarawakian workforce.

Area	Amendment Summary
Employee Coverage	Removes previous salary cap; protections now apply to all employees, regardless of income level or job type.
Pregnancy	Restriction on termination of pregnant female employees except on the grounds of willful breach of a condition of the contract of service, misconduct or closure of the employer’s business. Confinement has been reduced from 28 weeks to 22 weeks.
Maternity Leave	Increased from 60 days to 98 days.
Paternity Leave	Introduces 7 days paid leave for eligible working fathers.
Sick Leave and Hospitalization Leave	Employees are now entitled to 14 to 22 days of paid sick leave (depending on the length of service) if hospitalization is not necessary and an additional and separate 60 days of sick leave in a year if hospitalization is necessary.
Working Hours	Weekly maximum reduced from 48 hours to 45 hours.
Flexible Work Arrangement	Employees may formally request flexible work arrangements; employers must respond appropriately.
Protection against Workplace Discrimination	Allows employees to file complaints related to workplace discrimination and promotes equitable treatment.
Minimum Standards for Housing	Introduces minimum standards for housing, accommodation, and facilities (not yet in force).
Public Holidays	Adds Malaysia Day (16 Sept) and Sarawak Independence Day (22 July) as gazetted public holidays.
Complaint Mechanism	Establishes process for sexual harassment complaints and claims involving sole proprietors.

The 2025 amendments mark a pivotal transformation in Sarawak’s employment landscape, promoting fairness, inclusivity, and modern work practices. Employers must act proactively to comply with these legal changes and support a compliant, equitable work environment.

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