Sarawak Labour Ordinance (Amendment) Bill 2024

The Sarawak Labour Ordinance (Amendment) Bill 2024, passed by the Dewan Rakyat on December 12, 2024, marks a significant overhaul of labour laws in Sarawak. This comprehensive reform aims to align Sarawak’s labour standards with those of Peninsular Malaysia and international conventions, enhancing protections for approximately 1.46 million workers in the state.

Key Amendments and Enhancements

Expanded Coverage and Benefits

• Broader Employee Inclusion: The ordinance now covers all employees, regardless of salary or job type, ensuring that more workers receive statutory protections.
• Overtime and Holiday Pay: Employees earning up to RM4,000 monthly are now entitled to overtime compensation, as well as pay for work on public holidays and rest days.

Enhanced Leave Provisions

• Maternity Leave: Increased from 60 to 98 days, aligning with the International Labour Organization’s Maternity Protection Convention No. 183.
• Paternity Leave: Introduction of seven days of paternity leave, supporting fathers in their familial responsibilities.

Improved Working Conditions

• Reduced Working Hours: The standard workweek has been reduced from 48 to 45 hours, promoting better work-life balance and productivity.
• Flexible Working Arrangements: Employees can now request flexible work schedules, accommodating diverse needs and promoting inclusivity.

Strengthened Worker Protections

• Anti-Discrimination Measures: New provisions allow employees to file complaints regarding workplace discrimination, including issues related to gender, race, and other biases.
• Housing and Amenities Standards: Employers are mandated to provide housing and facilities that meet minimum standards, ensuring the welfare of workers, especially those in remote areas.

Preservation of State Autonomy

• Consultation Requirement: The newly added Section 130P stipulates that the federal government must consult with the Sarawak state government before making future amendments to the ordinance, safeguarding the state’s autonomy in labour matters.

Before the amendment to the Sarawak Labour Ordinance, the coverage of many protections—such as overtime pay, rest day and public holiday entitlements—was limited to employees earning RM2,500 or less per month, or those engaged in manual labor, regardless of salary.

With the 2024 amendments, the ordinance has been revised to cover a broader scope:

• The new salary cap is RM4,000 per month for entitlements such as:
  • Overtime pay
  • Holiday pay
  • Rest day compensation

However, all employees are now covered under the Ordinance’s general protections, regardless of salary. This includes protections related to:

• Working hours
• Leave entitlements
• Workplace discrimination
• Minimum employment standards

In summary:

Implementation and Future Outlook

While the amendments represent a substantial step forward, effective implementation remains crucial. Challenges such as ensuring awareness among workers, especially in rural areas, and enforcing compliance among employers need to be addressed. Proposals include deploying mobile units and digital platforms to disseminate information and conducting regular workplace audits to monitor adherence to the new regulations.

Additionally, concerns have been raised regarding the minimum working age set at 13 years. Critics advocate for raising it to 15 years to align with international standards and protect children’s rights.

Conclusion

The Sarawak Labour Ordinance (Amendment) Bill 2024 signifies a transformative shift in the state’s approach to labour rights, bringing it in line with national and international standards. Its successful implementation will depend on concerted efforts from government bodies, employers, and civil society to ensure that the enhanced protections translate into tangible benefits for all workers in Sarawak.