Labor Law Malaysia Working Hours

Before 1 January 2023, the maximum weekly working hours for both non-shift and shift employees under the Malaysian Employment Act 1955 were capped at 48 hours. Starting from 1 January 2023, this limit has been reduced to 45 hours per week for all employees covered by the Act, regardless of whether they work fixed or rotational shifts. The Act's existing provisions governing working hours and shift work remain unchanged alongside this amendment.

Working Hours in Malaysia

According to the Malaysian Employment Act 1955, the standard working hours for full-time employees are regulated to promote a balanced work-life dynamic. The law permits, with mutual agreement between employers and employees, flexibility in scheduling when work hours on one or more days of the week fall below 8 hours (for example, shortened hours on Saturdays or no work on Saturdays at all). In such cases, the 8-hour daily limit can be extended on the remaining days of the week, provided no employee is required to exceed 9 hours in a single day or 45 hours in a single week.

The Malaysian Employers Federation has outlined four scenarios to illustrate common working hour arrangements, with three scenarios applicable to non-shift employees and one tailored to shift employees. These scenarios are indicative of typical practices observed in various industries and businesses.

Scenario 1: Non-Shift Employees Working On An 8 Hours Per Day (Excluding Break), 5 Days Per Week

• This arrangement complies with the requirements of the EA 1955, as it adheres to the maximum 8 hours per day and totals 40 hours per week, well within the limit of 45 hours per week.
• The overtime limit remains capped at a maximum of 4 hours per day on working days.

Scenario 2a: Non-Shift Employees Working On 8 Hours Per Day (Excluding Break), 6 Days Per Week

• Employees are required to adhere to an 8-hour limit for 5 days each week. Additionally, on the 6th day, up to 5 extra hours may be worked to ensure compliance with the maximum 45 working hours per week.
• Overtime is limited to a maximum of 4 hours per day on the 5 working days.

Scenario 2a: Non-Shift Employees Working On 8 Hours Per Day (Excluding Break), 6 Days Per Week

• Employees adhere to an 8-hour daily limit for 5 days each week. On the 6th day, up to 5 additional hours can be worked to ensure compliance with the maximum of 45 working hours per week.
• The overtime limit remains at a maximum of 4 hours per day for the 5 regular working days.

Scenario 3: Non-Shift Employees Working On A 9 Hours Per Day (Excluding Break), 5 Days Per Week

According to the employment contract, if the number of work hours on one or more days is less than 8 hours, the daily limit of 8 hours can be extended to a maximum of 9 hours on the remaining days, provided that the total does not exceed 45 hours per week.

Scenario 4: Shift Employees' Possible Shift Roster Adjustment

"‘Shift work’ is defined as work that, due to its continuous or ongoing nature, requires two or more shifts to be carried out continuously.

Employees engaged in shift work may work more than eight (8) hours per day, provided the weekly limit of 45 hours is not exceeded, averaged over a three (3)-week period.

Adjustments to working hours may be necessary to comply with recent amendments. This could involve extending the lunch break or 'period of leisure' as defined in the EA 1955, resulting in a standard workweek of 7.5 hours over six (6) working days. Companies are responsible for paying overtime if their employees exceed 45 hours of work per week.

• Over a period of 3 weeks, the total working hours are calculated as follows: 60 hours + 60 hours + 15 hours = 135 hours. The average weekly working hours are therefore 135 hours / 3 weeks = 45 hours.
• According to the table above and to further clarify, despite shift workers working 12-hour shifts, no overtime is payable.

What is the Maximum of Overtime Hours?

The Employment Act stipulates that employees should not work more than 104 hours of overtime in a month. This limit is crucial to prevent employee burnout and ensure a healthy work-life balance.

Employees are entitled to additional pay for overtime work, typically 1.5 times the hourly rate on weekdays and double the rate on rest days and public holidays.

You may also interested in know your employee rights for public holiday.

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