Companies Can Save Money Through Flexible Work Arrangement

Large companies will adapt the flexible work arrangement incentives to support the government’s initiative to sustain the new normal by allowing their employees to work from the comfort of their own homes.

Datuk Michael Kang Hua Keon, president of SME Association of Malaysia said these incentives would help businesses decrease their operational costs.

"It's good that employers can get tax exemption if they provide their staff with equipment, such as laptops, to help them work from home as some workers may not be able to afford such devices.

"Traditionally, office equipment and facilities are part of companies' expenses. Only now the equipment is given to the worker for them to work from home, and in return, companies get incentives," he added.

Kang said employers could save on rentals when employees work from home. "Companies now need smaller space to run their businesses. For example, tech companies can share offices because fewer workers come to the office, by doing that, they can further save on operational cost."

Time to Amend the Employment Act?

Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan suggested that the government should amend the Employment Act 1955.

"It's great that the government is ready to provide tax incentives to employers to promote working from home. But since working from home is the new norm in the current context, hence the act should also be improved to cater to the new economy.

"We need to have a more flexible law, such as more flexible working and rest hours. If one is working from home there is no travelling time involved. All these need to be imputed into the system to achieve a win-win situation for employers and employees."

He also proposed that the government should give incentives to employees so they can establish a proper working space at home. "By creating a proper working space, employees will be more disciplined, therefore more efficient in delivering their jobs."

 
A home office might just be what employees need right now.

Do most employees prefer working from home?

Employers are not the only ones who welcome the flexible work arrangement. Trade unions also suggest the government should create guidelines for work-from-home arrangements to help employers and employees alike.

Many employees also prefer to work from home. According to a study, 73% of respondents believe that companies should embrace flexible working policies. Majority of the respondents say they are able to remain productive during the pandemic, thanks to the flexible work arrangement. 

Source: New Straits Times

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